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# Situation: In the island nation of Bezun, the government

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Situation: In the island nation of Bezun, the government [#permalink]

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16 May 2010, 05:09
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Situation: In the island nation of Bezun, the government taxes gasoline heavily in order to induce people not to drive. It uses the revenue from the gasoline tax to subsidize electricity in order to reduce prices charged for electricity.
Analysis: The greater the success achieved in meeting the first of these objectives, the less will be the success achieved in meeting the second.
The analysis provided for the situation above would be most appropriate in which one of the following situations?
(A) A library charges a late fee in order to induce borrowers to return books promptly. The library uses revenue from the late fee to send reminders to tardy borrowers in order to reduce the incidence of overdue books.
(B) A mail-order store imposes a stiff surcharge for overnight delivery in order to limit use of this option. The store uses revenue from the surcharge to pay the extra expenses it incurs for providing the overnight delivery service.
(C) The park management charges an admission fee so that a park’s users will contribute to the park’s upkeep. In order to keep admission fees low, the management does mot finance any new projects from them.
(D) A restaurant adds a service charge in order to spare customers the trouble of individual tips. The service charge is then shared among the restaurant’s workers in order to augment their low hourly wages.
(E) The highway administration charges a toll for crossing a bridge in order to get motorists to use other routes. It uses the revenue from that toll to generate a reserve fund in order to be able one day to build a new bridge.
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16 May 2010, 06:55
noboru wrote:
Situation: In the island nation of Bezun, the government taxes gasoline heavily in order to induce people not to drive. It uses the revenue from the gasoline tax to subsidize electricity in order to reduce prices charged for electricity.
Analysis: The greater the success achieved in meeting the first of these objectives, the less will be the success achieved in meeting the second.
The analysis provided for the situation above would be most appropriate in which one of the following situations?
(A) A library charges a late fee in order to induce borrowers to return books promptly. The library uses revenue from the late fee to send reminders to tardy borrowers in order to reduce the incidence of overdue books.
(B) A mail-order store imposes a stiff surcharge for overnight delivery in order to limit use of this option. The store uses revenue from the surcharge to pay the extra expenses it incurs for providing the overnight delivery service.
(C) The park management charges an admission fee so that a park’s users will contribute to the park’s upkeep. In order to keep admission fees low, the management does mot finance any new projects from them.
(D) A restaurant adds a service charge in order to spare customers the trouble of individual tips. The service charge is then shared among the restaurant’s workers in order to augment their low hourly wages.
(E) The highway administration charges a toll for crossing a bridge in order to get motorists to use other routes. It uses the revenue from that toll to generate a reserve fund in order to be able one day to build a new bridge.

None other than E.

If the motorists are forced to pay the toll (To make a new bridge) >>> they are indirectly forced to find the alternative routes >>> Motorists will not use the bridge >>> reduction in total traffic >>> Less toll collected >>> Less Money >>> NO NEW Bridge.

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17 May 2010, 10:07
my pick is (E) too but I would appreciate if someone can explain this argument in detail.

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19 May 2010, 11:51
My two cents on 'E' too.

my explanation:

In abstract way, govt generates fund from one form and use this fund to invest in something else.

Raising fund and investing the same fund makes 'B' and 'E' close contender.

'B' is out coz it uses the generated fund for the same purpose ( to reduce overnight deliveries)

'E' follows abstraction

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20 May 2010, 18:10
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Hey All,

I was asked to take this question on, and it's definitely a toughie. I agree with what everyone said here, but it's an odd question.

Situation: In the island nation of Bezun, the government taxes gasoline heavily in order to induce people not to drive. It uses the revenue from the gasoline tax to subsidize electricity in order to reduce prices charged for electricity.

Analysis: The greater the success achieved in meeting the first of these objectives, the less will be the success achieved in meeting the second.

The problem I see with this question is that this analysis is sorta crappy for this situation. Sure, the less money you get from gas, the less you'll be able to subsidize electricity, but that reads as the listed benefit from the tax, so it hardly seems like a non-benefit if less money goes into the coffers. I say this only because answer choice E matches the analysis much better than this situation.

The analysis provided for the situation above would be most appropriate in which one of the following situations?

(A) A library charges a late fee in order to induce borrowers to return books promptly. The library uses revenue from the late fee to send reminders to tardy borrowers in order to reduce the incidence of overdue books.
PROBLEM: This is my other favorite answer, personally, because the money is used in order to bring in less money, and if people to return books, there will be less money for sending out more notices (so you could argue that it matches the prompt in that way). However, the reminder is just another reason to bring in the books, whereas the sample situation has the money used for something else entirely (subsidizing electricity).

(B) A mail-order store imposes a stiff surcharge for overnight delivery in order to limit use of this option. The store uses revenue from the surcharge to pay the extra expenses it incurs for providing the overnight delivery service.
PROBLEM: The money stays in house here, when it ought to be going to some other plan.

(C) The park management charges an admission fee so that a park’s users will contribute to the park’s upkeep. In order to keep admission fees low, the management does mot finance any new projects from them.
PROBLEM: New projects are unrelated. We need that money to get spent somewhere.

(D) A restaurant adds a service charge in order to spare customers the trouble of individual tips. The service charge is then shared among the restaurant’s workers in order to augment their low hourly wages.
PROBLEM: Helping out wages is just a direct spending of the money, rather than going into some other investment.

(E) The highway administration charges a toll for crossing a bridge in order to get motorists to use other routes. It uses the revenue from that toll to generate a reserve fund in order to be able one day to build a new bridge.
ANSWER: Yep. Here we get people spending money, and if that money doesn't come in, they won't be able to build a new bridge. I prefer this to A only because the new bridge is more "odd" than late-book mailers, which is closer to the electricity example.

Hope that helps!

-tommy
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22 May 2010, 07:45
@TommyWallach

You explanation is very much clear and I agrees to it. But hoe can we decide option E is much better than A in this case.

To me both seems same and is confusing which one to choose.

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22 May 2010, 08:07
In E, govt is saving the money not spending, while the stimulus states that the collected amount is used to subsidize.

Fall for B.
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22 May 2010, 09:58
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I was about 85% in the E camp on first blush. This one is complex and I think requires a full breakdown of the Question and the Answers. Below is my reasoning, and hopefully it'll help settle the A versus E question:
noboru wrote:
Situation: In the island nation of Bezun, the government taxes gasoline heavily in order to induce people not to drive. It uses the revenue from the gasoline tax to subsidize electricity in order to reduce prices charged for electricity.

Analysis: The greater the success achieved in meeting the first of these objectives, the less will be the success achieved in meeting the second.

Starting here, let's figure why/how this analysis comes out:

First Objective: Induce people not to drive (people not paying the tax because they're not driving: success)
Second Objective: Reduce prices for electricity (people paying the tax because they ARE driving: success)

Basically we have to find a situation below where there's a shared driver of success between the two objectives... except the driver works in opposite ways for the two goals.

The analysis provided for the situation above would be most appropriate in which one of the following situations?

(A) A library charges a late fee in order to induce borrowers to return books promptly. The library uses revenue from the late fee to send reminders to tardy borrowers in order to reduce the incidence of overdue books.

First Objective: Prompt return of books (avoiding late fee by returning books: success)
Second Objective: Prompt return of books (either being reminded to return books OR avoiding late fees by returning books: success)

Here the goals are the same. So no matter what happens with drivers they'll move in the same direction. No dice.

(B) A mail-order store imposes a stiff surcharge for overnight delivery in order to limit use of this option. The store uses revenue from the surcharge to pay the extra expenses it incurs for providing the overnight delivery service.

First Objective: Less people using overnight delivery (People using other service to avoid fees: success)
Second Objective: Spend less on overnight delivery (People using other service reduces overall costs: success)

It's easy to see that doing well in (1) will also help (2). Even though if less people contribute to the surcharge revenue, the store will be paying less ANYWAY because they're not doing as much overnight delivery.

(C) The park management charges an admission fee so that a park’s users will contribute to the park’s upkeep. In order to keep admission fees low, the management does mot finance any new projects from them.

First Objective: Have people contribute to park upkeep. (People pay admission: success)
Second Objective: Keep admission fees low (??)

These two objectives don't have any real shared drivers (not with the info given at least). Also, there are vague terms: What is "low"? What defines "contribute"? It's not possible to tease out the relationship between the objectives.

(D) A restaurant adds a service charge in order to spare customers the trouble of individual tips. The service charge is then shared among the restaurant’s workers in order to augment their low hourly wages.

First Objective: Be convenient for customers. (People pay charge: success)
Second Objective: Augment workers pay. (People pay charge: success)

It's easy to see that if you experience any success in (1), an equivalent amount of success rolls over in to (2). The objectives have the same driver, it just works the same way for both of them.

(E) The highway administration charges a toll for crossing a bridge in order to get motorists to use other routes. It uses the revenue from that toll to generate a reserve fund in order to be able one day to build a new bridge.

First Objective: Keep people away from bridge (People avoid bridge due to toll: success)
Second Objective: Build new bridge with toll money (People avoid bridge due to toll... not so successful)

Here, like it was explained earlier, if you're good at encouraging people to NOT use the bridge (1), then you'll get less money from the toll. (2) depends entirely on this toll revenue... while there's no timeline stated as to when the new bridge will be built ("one day"), this scenario fits the analysis the best, far beyond the others. You can assume building the new bridge sooner would be an indicator of greater success. E should now be an obvious choice!

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22 May 2010, 13:40
Dalmba really nailed the further explanation. Well done!

-t
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31 Jul 2010, 16:27
OA is E, thanks.
It is a LSAT question, actually.
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31 Jul 2010, 21:59
noboru wrote:
OA is E, thanks.
It is a LSAT question, actually.

Is that considered a hard LSAT question? I recently ordered the Powerscore LSAT Logical Reasoning guide and want to know whether I'm going to encounter more tough ones like that. I hope so. Really looking to up the verbal to the high 40s. Anyone feel free to chime in.

Thx,
Gryphon

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01 Aug 2010, 03:04
+1 for E

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03 Aug 2010, 01:29
Gryphon wrote:
noboru wrote:
OA is E, thanks.
It is a LSAT question, actually.

Is that considered a hard LSAT question? I recently ordered the Powerscore LSAT Logical Reasoning guide and want to know whether I'm going to encounter more tough ones like that. I hope so. Really looking to up the verbal to the high 40s. Anyone feel free to chime in.

Thx,
Gryphon

I have studied from the LSAT Logical Reasoning Bible, and I can say that is a great book, with lots of strategies and hard questions. Im retaking the GMAT tomorrow. I got a V31 last time...let´s see how much I improve the score this time.
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03 Aug 2010, 02:53
noboru wrote:
Gryphon wrote:
noboru wrote:
OA is E, thanks.
It is a LSAT question, actually.

Is that considered a hard LSAT question? I recently ordered the Powerscore LSAT Logical Reasoning guide and want to know whether I'm going to encounter more tough ones like that. I hope so. Really looking to up the verbal to the high 40s. Anyone feel free to chime in.

Thx,
Gryphon

I have studied from the LSAT Logical Reasoning Bible, and I can say that is a great book, with lots of strategies and hard questions. Im retaking the GMAT tomorrow. I got a V31 last time...let´s see how much I improve the score this time.

Great, I'd love to hear how you do and to what extent the LSAT prep materials helped you out. Good luck!

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03 Aug 2010, 13:02
Hey Noburu! How'd it go?

-t
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Re: Bezun   [#permalink] 03 Aug 2010, 13:02
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