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# The government of Golado has recently increased the taxes imposed on

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Target Test Prep Representative
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The government of Golado has recently increased the taxes imposed on  [#permalink]

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07 Sep 2017, 16:45
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55% (hard)

Question Stats:

63% (02:07) correct 37% (02:15) wrong based on 361 sessions

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The government of Golado has recently increased the taxes imposed on the retail sale of all alcoholic beverages in Golado. While, by effectively increasing the cost of alcoholic beverages, the government expects the tax increase to result in significantly reduced consumption of alcohol in Golado, the government’s primary purpose in increasing the taxes is actually to reduce Golado’s government budget gap.

Which of the following, if true, provides evidence suggesting that increasing the taxes on sales of alcohol will result in the government’s achieving its goal?

(A) Alcohol consumption is second only to cigarette smoking in causing preventable health problems in citizens of Golado.

(B) In Golado, all the organizations involved in dealing with health problems resulting from the consumption of alcohol are funded by the government.

(C) Soon after increasing the taxes on sales of alcoholic beverages, the government of Golado also imposed a tax on retail sales of cigarettes.

(D) The reduced consumption of alcohol in Golado resulting from the tax increase is expected to result in a reduction in duties the government collects from importers of alcohol.

(E) Golado's government budget gap is much smaller than it was before the government enacted austerity measures three years ago.

Source: TTP Beta Testing

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Re: The government of Golado has recently increased the taxes imposed on  [#permalink]

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07 Sep 2017, 22:57
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MartyMurray wrote:
The government of Golado has recently increased the taxes imposed on the retail sale of all alcoholic beverages in Golado. While, by effectively increasing the cost of alcoholic beverages, the government expects the tax increase to result in significantly reduced consumption of alcohol in Golado, the government’s primary purpose in increasing the taxes is actually to reduce Golado’s government budget gap.

Which of the following, if true, provides evidence suggesting that increasing the taxes on sales of alcohol will result in the government’s achieving its goal?

(A) Alcohol consumption is second only to cigarette smoking in causing preventable health problems in citizens of Golado.

(B) In Golado, all the organizations involved in dealing with health problems resulting from the consumption of alcohol are funded by the government.

(C) Soon after increasing the taxes on sales of alcoholic beverages, the government of Golado also imposed a tax on retail sales of cigarettes.

(D) The reduced consumption of alcohol in Golado resulting from the tax increase is expected to result in a reduction in duties the government collects from importers of alcohol.

(E) Golado's government budget gap is much smaller than it was before the government enacted austerity measures three years ago.

Source: TTP Beta Testing

The government has increased taxes imposed on the retail sale of all alcoholic beverages in Golado. With this tax increase, the consumption is expected to decrease. The primary purpose of the plan is also stated: to reduce the budget gap.
One concern that we could think about is if the consumption of alcohol decreases, the tax revenue will also decrease. This could inversely affect the present budget gap. So we need one option which states that with the decreased consumption of alcohol, the budget gap of government also reduces.
Option (B) clearly does the work. If the government is funding the organizations involved in dealing with health problems resulting from the consumption of alcohol, then a decreased consumption could mean decreased funding to these organizations, thereby reducing the budget gap of the government.
All other options don't make any sense in the context provided.
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Re: The government of Golado has recently increased the taxes imposed on  [#permalink]

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08 Sep 2017, 03:59
MartyMurray wrote:
The government of Golado has recently increased the taxes imposed on the retail sale of all alcoholic beverages in Golado. While, by effectively increasing the cost of alcoholic beverages, the government expects the tax increase to result in significantly reduced consumption of alcohol in Golado, the government’s primary purpose in increasing the taxes is actually to reduce Golado’s government budget gap.

Which of the following, if true, provides evidence suggesting that increasing the taxes on sales of alcohol will result in the government’s achieving its goal?

(A) Alcohol consumption is second only to cigarette smoking in causing preventable health problems in citizens of Golado.
This choice is irrelevant to the argument. We dont care about health problems in citizens of Golado.

(B) In Golado, all the organizations involved in dealing with health problems resulting from the consumption of alcohol are funded by the government.
Correct. If the alcohol consumption is reduced, the government could save more from the funds for health problems.

(C) Soon after increasing the taxes on sales of alcoholic beverages, the government of Golado also imposed a tax on retail sales of cigarettes.
This choice doesn't prove that increasing taxes will help to reduce Golado’s government budget gap.

(D) The reduced consumption of alcohol in Golado resulting from the tax increase is expected to result in a reduction in duties the government collects from importers of alcohol.
This choice somewhat weakens the argument. The government's budget will be reduced because of a reduction in duties.

(E) Golado's government budget gap is much smaller than it was before the government enacted austerity measures three years ago.
This choice indicates that the budget is improved. However, we can't know whether the budget is improved because of tax increase on sales of alcohol.
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Re: The government of Golado has recently increased the taxes imposed on  [#permalink]

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26 Feb 2018, 10:32
TTP is well-known for great resource of math problems. This verbal question is also a good one to practice.B is a common and important pattern and B helps to reduce the budgets of the government, test takers must know.
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Re: The government of Golado has recently increased the taxes imposed on  [#permalink]

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05 May 2019, 20:26
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Re: The government of Golado has recently increased the taxes imposed on   [#permalink] 05 May 2019, 20:26
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