manishkhare wrote:
The following argument took place at a recent town meeting in Sun Grove, a well known tourist destination:
Local Newspaper Editor: Our town government continues to be fiscally irresponsible. Members of the town council have just approved over $120,000 in new salaries for three parking enforcement officers that the town simply cannot afford.
Town Mayor: Your argument is completely unfounded! Hiring new parking enforcement officers will help the town’s financial situation, not hurt it. Typically a parking enforcement officer brings in over twice what they are paid, so these three officers will surely have a net positive effect on the town budget in the future.
Which of the following exposes a flaw in the Town Mayor’s argument?
[A]There is a saturation point at which additional parking enforcement officers bring in slightly less than the officers hired before them.
[B]More parking enforcement typically incentivizes both tourists and locals to take public transportation, increasing profits on buses and trains owned by the town.
[C]Tourism is the primary revenue generator for the town of Sun Grove, and visitors rarely return to a tourist destination after receiving a ticket.
[D]Fines for parking are going to be increased dramatically, which usually results in fewer overall tickets being issued.
[E]Sun Grove has a policy that it will not take legal action if an individual has one unpaid parking ticket.
Press Kudos if you like the question.
Focus on what the Town Mayor says: "Hiring new parking enforcement officers will help the town’s financial situation, not hurt it. Typically a parking enforcement officer brings in over twice what they are paid, so
these three officers will surely have a net positive effect on the town budget in the future."
Essentially, he is saying that the hiring of the officers will have a net positive effect on the budget in future.
Option (C) tells you that the hiring could actually have a negative effect on the future budget. More officers will mean more tickets being issued and that might discourage the tourists from coming in again. Hence, it weakens the mayor's argument since the hiring could have a net negative effect on the future budget.
The only other relevant options are (A) and (D)
[A]There is a saturation point at which additional parking enforcement officers bring in slightly less than the officers hired before them.
This tells you that the positive effect may be SLIGHTLY less. So it is not a flaw in the mayor's argument. The hiring could still have a net positive effect on the budget.
[D]Fines for parking are going to be increased dramatically, which usually results in fewer overall tickets being issued.
If parking fine amount will be increased, it will increase the revenue. If fewer tickets will be issued, it will reduce the revenue. Overall, we don't know the impact. Anyway, this has nothing to do with the hiring of three new enforcement officers and the effect that will have.
Hence answer (C)