The consumer and the general taxpayer subsidize the : GMAT Critical Reasoning (CR)
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# The consumer and the general taxpayer subsidize the

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The consumer and the general taxpayer subsidize the [#permalink]

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08 Jun 2004, 08:28
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The consumer and the general taxpayer subsidize the automobile in many ways that may at first be overlooked. They pay for traffic signals, extra police officers, pollution cleanup, and traffic ecgineering departments. They also pay when the cost of purchasing and maintaining land for parking space is added into a store's overhead and becomes a factor in determining the prices that the store will charge.

Which of the following sentence would provide the most logical conclusion for this paragraph?

A People who demand public subsidy of underground mass transportation are asking for an unprecedented kind of support.

B Because only the automobile incurs hidden expenses, this country should support underground mass transit systems.

C People who expect underground mass transit systems to operate without subsidy, therefore, are not beign realistic.

D Increasing emphasis in underground mass transportation, therefore, will change our style of life in ways we cannot even imagine.

E People who expect underground mass transit systems to gradually supplant our reliance on the automobile are not being realistic.

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08 Jun 2004, 08:54
I would go with D on this one. I'll provide explanation in a few.
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08 Jun 2004, 09:02
B for me.

As the argument talks about Automobile and the hidden costs associated with it, it can be reasonably concluded that the creator of this argument looking for an alternate mode of transportation. Underground transit will not have so much hidden cost (may or may not have any costs) so thats my logical reasoning.

Last edited by Bhai on 08 Jun 2004, 19:30, edited 1 time in total.
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08 Jun 2004, 09:14
An alternative point of view. What do you guys think?

The paragraph goes to show that there are hidden, often indirect, costs incurred on the customer and the general tax payer that subsidize the automobile. This may very well serve as a means to show that the same pattern holds true for another industry/system, etc.
C fits the bill.
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Re: Cr--The consumer and the general taxpayer [#permalink]

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08 Jun 2004, 09:15
Tough One
I will go with B
(Same reasoning as Bhai)
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Re: Cr--The consumer and the general taxpayer [#permalink]

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08 Jun 2004, 10:13
C.

D is just too cheerful. Sure it will change our style of life, should we throw a party about it?
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08 Jun 2004, 10:57
I see your point for B and why D is too cheeful. However, how can we ascertain that the underground mass transit system does not also have hidden fees? The author's contention seems to weigh towards the underground mass transit system not having THOSE hidden fees but could it have OTHER hidden fees which are not mentioned here? However, with D, with the enumeration of all the cons of automobile usage, it seems like an overly good thing(lifestyle change) to drop automobiles and switch to "the tube"... Just my 2 cents.
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08 Jun 2004, 12:10
Paul wrote:
I see your point for B and why D is too cheeful. However, how can we ascertain that the underground mass transit system does not also have hidden fees? The author's contention seems to weigh towards the underground mass transit system not having THOSE hidden fees but could it have OTHER hidden fees which are not mentioned here? However, with D, with the enumeration of all the cons of automobile usage, it seems like an overly good thing(lifestyle change) to drop automobiles and switch to "the tube"... Just my 2 cents.

I see what you mean, Paul. Although to say that an increased emphasis on underground mass transportation will cause great changes is stretching the point. The passage does not provide any information to corroborate such an assumption. We are told that there are hidden fees; however we are not told whether or not these fees are too cumbersome for the taxpayer. True, the author says nothing to the effect that the underground transportation system imposes the same costs on the taxpayer. S/He does however seem to use the automobile as an example that goes to show there may be hidden costs, perhaps/probably of a different kind, in a similar field. Therefore, to expect that the subway will do without subsidies is not realistic.
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08 Jun 2004, 12:26
ob, I did not even consider C yet but indeed it seems to fit the bill. We can definitely draw a parallel between that and the underground mass transportation system hidden costs. The only objection I could find is that of course, those mentioned costs are none of the costs that an underground transit system could incur. However, in a second order of thought, the author may well want to make a point that certain "hidden costs" could apply to just any type of transit system as you mentioned. .

Just to add that I also don't like B because of the word "only"
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Last edited by Paul on 08 Jun 2004, 16:49, edited 1 time in total.
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08 Jun 2004, 13:45
I will go with (C) on this one

I dont see any difference between automobiles and mass ground transport as far as management is concerned.. Many of the things that are required to manage automobiles on a mass scale are required for ground transport as well. Ground transport also needs signals , ticket agents , traffic engineering etc.
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08 Jun 2004, 13:55
anandnk wrote:
I will go with (C) on this one

I dont see any difference between automobiles and mass ground transport as far as management is concerned.. Many of the things that are required to manage automobiles on a mass scale are required for ground transport as well. Ground transport also needs signals , ticket agents , traffic engineering etc.

Anandnk, the question is whether the underground mass transit system needs those things you mentioned...
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08 Jun 2004, 14:02
Well I thought of it differently.

I am little confused now. Who is paying for the traffic signals, traffic engineering etc ? I believe the government. If government does not pay then people will have to pay. To avoid paying for these(affording car is expensive - insurence, parking space etc) people might think of using ground transport. Even then people will have to pay the overhead involved in managing the ground transport system if the government does not pay for this management.
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08 Jun 2004, 19:31
Hey Chung...drop the torture and feed us the OA.
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09 Jun 2004, 05:12
I believe (C) should be the answer, because (C) draws the same analogy as is presented in the passage. (Though I reached to (C) by process of Elimination).

What's the OA.
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10 Jun 2004, 10:05
sorry for late reply

OA is C
10 Jun 2004, 10:05
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# The consumer and the general taxpayer subsidize the

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