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 Wallach | Manhattan GMAT Instructor | San Francisco
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