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There are currently 50 percent more taxpayers in Sleepy Valley

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There are currently 50 percent more taxpayers in Sleepy Valley  [#permalink]

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New post 17 Jan 2019, 20:37
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Question Stats:

35% (02:12) correct 65% (02:22) wrong based on 242 sessions

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There are currently 50 percent more taxpayers in Sleepy Valley than registered voters. A national study has shown a high correlation between voter turnout and total taxable income within an election district. Therefore, the mayor has proposed an increase in the minimum wage in order to increase voter turnout.

Which of the following is an assumption on which the mayor’s proposal depends?

(A) The proportion of registered voters to taxpayers in Sleepy Valley is greater than the proportion of registered voters to taxpayers nationally.
(B) Almost all registered voters are taxpayers.
(C) The employment rate in Sleepy Valley will not decrease.
(D) Most taxpayers in Sleepy Valley have little or no earned income.
(E) Most of the taxpayers who are not registered voters in Sleepy Valley earn more than minimum wage.
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Re: There are currently 50 percent more taxpayers in Sleepy Valley  [#permalink]

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New post 17 Jan 2019, 23:51
Explanation required on how to approach
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Re: There are currently 50 percent more taxpayers in Sleepy Valley  [#permalink]

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New post 17 Jan 2019, 23:52
If someone could explain how to derive to this OA
For me its simply not fitting
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There are currently 50 percent more taxpayers in Sleepy Valley  [#permalink]

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New post 21 Jan 2019, 02:30
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Here is my explanation:-

Correlation is between high voter turn and total taxable income. Mayor proposed to increase minimum wage, thinking it will increase total taxable income and in turn more voter turn out.

But think of some scenario in which this doesn't hold true. Scenarios in which increasing a minimum wage, will not in turn increase total taxable income. Some scenarios are mentioned below :-

1. What if increased wage will have an effect on employment rate. Increasing wage will reduce the employed people , in turn can bring down or same as per current level of total taxable income.

2. What if all the employed people is earning way above the minimum wage, this will not have any effect on total taxable income.

Scenarios like these will weaken the argument, hence we need to find just opposite of these scenarios.

for 1. The employment rate in Sleepy Valley will not decrease.
2. There are some people who will benefit from increase in minimum wage, while rest will not be affected by this minimum wage increase.

So and choice C suits and seems correct ans to me.

(A) The proportion of registered voters to taxpayers in Sleepy Valley is greater than the proportion of registered voters to taxpayers nationally.
Out of Scope as we don't care about the comparison between sleepy valley and nation wide.

(B) Almost all registered voters are taxpayers.
Doesn't matter as the correlation will still hold.

(D) Most taxpayers in Sleepy Valley have little or no earned income.
But how increase in minimum wage will effect to people who has some income. Will that increase overall taxable income? we dont know.

(E) Most of the taxpayers who are not registered voters in Sleepy Valley earn more than minimum wage.
This option only talks about taxpayers who are not registered, lets say this group as A and another group B i.e. Taxpayers who are registered. So clearly Group A will not affect the total taxable income, but what about group B, we dont know. Will that increase total taxable income or reduce, we dont know. It depends how the group is affected. Hence E is also out.
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Re: There are currently 50 percent more taxpayers in Sleepy Valley  [#permalink]

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New post 27 Jan 2019, 11:52
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the mayor has proposed an increase in the minimum wage in order to increase voter turnout.
If the mayor is demanding the minimum he should be assured that there will not be a reduction in tax payers and it should not have negative effect.(his assumptions should be these atleast)

(A) The proportion of registered voters to taxpayers in Sleepy Valley is greater than the proportion of registered voters to taxpayers nationally."No comparison of nation. Straight out"
(B) Almost all registered voters are taxpayers. I was not sure if all tax payers are registered voters than how will increasing min page increase voters. keep it aside
(C) The employment rate in Sleepy Valley will not decrease. Now if employment rate decrease, there will be less number of tax payers hence it will have a negative effect. Seemed like a good option so i kept it aside.
(D) Most taxpayers in Sleepy Valley have little or no earned income. If tax payers have little income, increasing min wage will have no effect.
(E) Most of the taxpayers who are not registered voters in Sleepy Valley earn more than minimum wage. again increasing min wage will actually reduce number of tax payers. So assumption goes wrong

Out of all options I found C most viable
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Re: There are currently 50 percent more taxpayers in Sleepy Valley  [#permalink]

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New post 27 Jan 2019, 22:59
Manang wrote:
There are currently 50 percent more taxpayers in Sleepy Valley than registered voters. A national study has shown a high correlation between voter turnout and total taxable income within an election district. Therefore, the mayor has proposed an increase in the minimum wage in order to increase voter turnout.

Which of the following is an assumption on which the mayor’s proposal depends?

(A) The proportion of registered voters to taxpayers in Sleepy Valley is greater than the proportion of registered voters to taxpayers nationally.
(B) Almost all registered voters are taxpayers.
(C) The employment rate in Sleepy Valley will not decrease.
(D) Most taxpayers in Sleepy Valley have little or no earned income.
(E) Most of the taxpayers who are not registered voters in Sleepy Valley earn more than minimum wage.



Statement tells that taxpayers' income and no. Of voters have high correlation, but it doesn't tells about if they are correlated with direct relation or inverse relation, ie whether we no. Of voters increase with higher wages or lower wager.

So talking about option C, no one can tell it the assumption was as given in option or just opposite..

Hence, option C is WRONG

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Re: There are currently 50 percent more taxpayers in Sleepy Valley   [#permalink] 27 Jan 2019, 22:59
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