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The Scorpio Miser with its special high-efficiency engine

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Joined: 28 Aug 2009
Posts: 83
Followers: 1

Kudos [?]: 18 [0], given: 0

The Scorpio Miser with its special high-efficiency engine [#permalink]

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New post 12 Sep 2009, 23:14



Question Stats:

40% (02:21) correct 60% (03:17) wrong based on 4 sessions

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The Scorpio Miser with its special high-efficiency engine costs more to buy than the standard Scorpio sports car. At current fuel prices, a buyer choosing the Miser would have to drive it 60,000 miles to make up the difference in purchase price through savings on fuel. It follows that, if fuel prices fell, it would take fewer miles to reach the break-even point.
Which one of the following arguments contains an error of reasoning similar to that in the argument above?

(A) The true annual rate of earnings on an interest-bearing account is the annual rate of interest less the annual rate of inflation. Consequently, if the rate of inflation drips, the rate of interest can be reduced by an equal amount without there being a change in the true rate of earnings.
(B) For retail food stores, the Polar freezer, unlike the Arctic freezer, provides a consistent temperature that allows the store to carry premium frozen foods. Thus, if electricity rates fell, a lower volume of premium-food sales could justify choosing the Polar freezer.
(C) With the Roadmaker, a crew can repave a mile of decayed road in less time than with the competing model, which is, however, much less expensive. Reduced staffing levels made possible by the Roadmaker eventually compensate for its higher price. Therefore, the Roadmaker is especially advantageous where average wages are low.
(D) The improve strain the Northland apple tree bears fruit younger and lives longer than the standard strain. The standard strain does grow larger at maturity, but to allow for this, standard trees must be spaced farther apart. Therefore, new plantings should all be of the improved strain.
(E) Stocks pay dividends, which vary from year to year depending on profits made. Bonds pay interest, which remains constant from year to year. Therefore, since the interest earned on bonds does not decrease when economic conditions decline, investors interested in a reliable income should choose bonds.
Please explain ur answers.
Joined: 05 Sep 2009
Posts: 9
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Re: Scorpio Miser / sports [#permalink]

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New post 13 Sep 2009, 02:08
Hi This seems like a good question.

In the argument - it is very clear that the - conclusion can be drawn and the conclusion that has been drawn is wrong.

A) Conclusion can be made and it has been made correctly...and therefore not the correct answer.

(B) The info is incomplete here to to be able to draw the conclusion. Therefore not the right answer.

(C) We can clearly understand that the conclusion is wrong therefore it can be right answer.

(D) We cannot say that the conclusion is right or wrong in this case. therefore not the right answer.

(E) Here conclusion can be drawn and has been drawn correctly therefore not the right answer.

I will therefore go with "C"

- Its all about correctness first and then the timing.

Re: Scorpio Miser / sports   [#permalink] 13 Sep 2009, 02:08
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The Scorpio Miser with its special high-efficiency engine

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