Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 29 May 2017, 20:07

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The Hazelton coal-processing plant is a major employer in

Author Message
TAGS:

### Hide Tags

Intern
Joined: 20 Jun 2011
Posts: 1
Followers: 0

Kudos [?]: 2 [0], given: 0

The Hazelton coal-processing plant is a major employer in [#permalink]

### Show Tags

04 Jul 2011, 16:25
2
This post was
BOOKMARKED
00:00

Difficulty:

5% (low)

Question Stats:

83% (02:14) correct 17% (01:22) wrong based on 365 sessions

### HideShow timer Statistics

The Hazelton coal-processing plant is a major employer in the Hazelton area, but national environmental regulations will force it to close if it continues to use old, polluting processing methods. However, to update the plant to use newer, cleaner methods would be so expensive that the plant will close unless it receives the tax break it has requested. In order to prevent a major increase in local unemployment, the Hazelton government is considering granting the plant's request.

Which of the following would be most important for the Hazelton government to determine before deciding whether to grant the plant’s request?

(A) Whether the company that owns the plant would open a new plant in another area if the present plant were closed
(B) Whether the plant would employ far fewer workers when updated than it does now
(C) Whether the level of pollutants presently being emitted by the plant is high enough to constitute a health hazard for local residents
(D) Whether the majority of the coal processed by the plant is sold outside the Hazelton area
(E) Whether the plant would be able to process more coal when updated than it does now

Official Guide 12 Question

 Question: 29 Page: 37 Difficulty: 600

Find All Official Guide Questions

Video Explanations:
[Reveal] Spoiler: OA
If you have any questions
New!
Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2013
Followers: 163

Kudos [?]: 1832 [0], given: 376

Re: CR: official diagnostic Hazelton Coal-Processing [#permalink]

### Show Tags

04 Jul 2011, 17:08
greenspring wrote:
28. The Hazelton coal-processing plant is a major employer in the Hazelton area, but national environmental regulations will force it to close if it continues to use old, polluting processing methods. However, to update the plant to use newer, cleaner methods would be so expensive that the plant will close unless it receives the tax break it has requested. In order to prevent a major increase in local unemployment, the Hazelton government is considering granting the plant's request.

Which of following would be most important for the Hazelton government to determine before deciding whether to grant the plant's request?

A. Whether the company that owns the plant would open a new plant in another area if the present plant were closed.

B. Whether the plant would employ far fewer workers when updated than it does now.

C. Whether the level of pollutants presently being emitted by the plant is high enough to constitute a health hazard for local residents.

D. Whether the majority of the coal processed by the plant is sold outside the Hazelton area.

E. Whether the plant would be able to process more coal when updated than it does now.

"A" - If the present plant is closed, Hazelton government would not even worry about this issue. So, the issue whether to grant tax doesn't come into picture.

The question is based on the premise that the company wants to operate in the same city. The government's concerns are both whether the company employs new methods to ensure less harmful environment AND whether the company doesn't hamper the employment.

"B" mentions a situation in which despite offering the grants, the employment may decrease, clearly contradicting government's objective.

"C" is a fact that government already knows about. Again, if this were not true, the issue would not even exist.

"D" concerns the plant, not the government.

"E" So far the objective of reducing pollutants and retaining employees is met, government is happy. If plant can process more coal along the line, it's going to be good for the company and in turn for the government as more revenue ensures more taxes. However, this statement talks about a consideration that government need not worry about.

Ans: "B"
_________________
Intern
Joined: 14 Apr 2011
Posts: 20
Followers: 0

Kudos [?]: 3 [0], given: 0

Re: CR: official diagnostic Hazelton Coal-Processing [#permalink]

### Show Tags

04 Jul 2011, 19:12
I would go with B since the point of the plant is to sustain employment. If less people were employed after the government gives the tax break, then the plan to sustain employment would have failed.
CEO
Joined: 17 Jul 2014
Posts: 2509
Location: United States (IL)
Concentration: Finance, Economics
Schools: Stanford '19 (D)
GMAT 1: 650 Q49 V30
GPA: 3.92
WE: General Management (Transportation)
Followers: 26

Kudos [?]: 345 [0], given: 169

Re: The Hazelton coal-processing plant is a major employer in [#permalink]

### Show Tags

15 Nov 2015, 14:18
I completely agree with OA, yet, I have some ideas that I believe should not be avoided during the analysis of this argument.

If the company does not receive tax break, then it will surely close, since it cannot continue with its old polluting processing methods. Moreover, there is one more reason why would the plant close - the company doesn't have $to upgrade to cleaner methods. Basically, if the HG doesn't offer tax break, the plant will definitely close, an action that would lead to huge number of unemployed people. To prevent the hike in unemployment, the most the government can do is offer tax break. Even if the new methods may lead to fewer jobs, there would still be some jobs. Which is not that bad after all. For ex. 10k people work at the plant closure of the plant - 10k people unemployed new methods - cut by 1/2 employees 5000 lost jobs, but 5000 remained. 5000 lost is still better than 10k... Manager Joined: 03 Jan 2016 Posts: 61 Location: India GMAT 1: 640 Q49 V29 GMAT 2: 760 Q51 V41 GPA: 3.2 Followers: 0 Kudos [?]: 6 [0], given: 42 Re: The Hazelton coal-processing plant is a major employer in [#permalink] ### Show Tags 18 Jan 2017, 04:57 mvictor wrote: I completely agree with OA, yet, I have some ideas that I believe should not be avoided during the analysis of this argument. If the company does not receive tax break, then it will surely close, since it cannot continue with its old polluting processing methods. Moreover, there is one more reason why would the plant close - the company doesn't have$ to upgrade to cleaner methods.

Basically, if the HG doesn't offer tax break, the plant will definitely close, an action that would lead to huge number of unemployed people.

To prevent the hike in unemployment, the most the government can do is offer tax break. Even if the new methods may lead to fewer jobs, there would still be some jobs. Which is not that bad after all.
For ex. 10k people work at the plant
closure of the plant - 10k people unemployed

new methods - cut by 1/2 employees
5000 lost jobs, but 5000 remained.

5000 lost is still better than 10k...

I agree with your point. But, does that not eliminate B? Like you said, 5000, heck even 1000 is better than 10K, if the motive of the government is to ensure as less people lose their jobs as possible.

I see the problem with E too, that the passage does not say the plant can look for other ways to raise money, which makes E irrelevant.
Re: The Hazelton coal-processing plant is a major employer in   [#permalink] 18 Jan 2017, 04:57
Similar topics Replies Last post
Similar
Topics:
1 Dana intentionally watered the plant 1 25 May 2017, 05:49
2 A scientist planted two groups of plants under identical conditions 1 06 Aug 2016, 01:49
3 because plants have more nutrients 2 06 Nov 2016, 07:11
5 Respiratory Problems and Cosmetic Manufacturing Plants 12 13 Dec 2014, 15:02
5 The recent decline in the employment rate was spurred by 12 12 Apr 2017, 20:54
Display posts from previous: Sort by