NEW HERE? LEARN MORE
closeclose
Last visit was: 15 May 2024, 00:06 It is currently 15 May 2024, 00:06
Decision Tracker
My Rewards
New posts
New comers' posts

Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

To reduce its budget deficit

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
avatar
kalravaibhav
Intern
Intern
Joined: 01 May 2013
Posts: 10
Own Kudos [?]: 152 [2]
Given Kudos: 2
Send PM
To reduce its budget deficit [#permalink] New post   30 Sep 2013, 07:25
2
Bookmarks
00:00
A
B
C
D
E

Difficulty:

15% (low)

Question Stats:

79% (01:40) correct 21% (01:45) wrong based on 303 sessions
Hide Show timer Statistics
To reduce its budget deficit, a municipal government is considering a plan to delay expenditures on a major reconstruction of the city's bridges and highways.

Each of the following, assuming that it is a realistic possibility, is a possible disadvantage to the city of the plan EXCEPT:

a) If left untended, some of the bridges will degenerate to a point where they can no longer be repaired.
b) A delay in the bridge and highway overhaul might allow repair workers to make use of new technologies that will be available in the future.
c) The cost of continuous maintenance of the badly corroding highways and bridges will exceed the costs of reconstruction.
d) Much of the cost of the reconstruction project was to be paid for with federal money that cannot be used for any other purpose.
e) The city has already purchased the raw materials and machinery needed for the reconstruction —— which constituted the bulk of the cost of the project.


Please help me answer the above question. I am confused between B and D.
My reasons:
Option B: Though it supports the delay in work, the explanation that workers amy be able to use new technologies has no link with the financial factor that is cited in the argument.

Option D: This option supports the financial deficit. If the federal budget for this project is not utilised then the deficit will not be soo bad!

Please help choose between the two.

Thanks.
ShowHide Answer
Official Answer
B
avatar
himang
Intern
Intern
Joined: 24 Apr 2013
Status:NOT READY TO GIVE UP
Posts: 19
Own Kudos [?]: 10 [1]
Given Kudos: 45
Location: India
Concentration: Strategy, Marketing
GMAT Date: 10-30-2013
WE:Engineering (Other)
Send PM
Re: To reduce its budget deficit [#permalink] New post   02 Oct 2013, 08:54
1
Kudos
kalravaibhav wrote:
To reduce its budget deficit, a municipal government is considering a plan to delay expenditures on a major reconstruction of the city's bridges and highways.

Each of the following, assuming that it is a realistic possibility, is a possible disadvantage to the city of the plan EXCEPT:

a) If left untended, some of the bridges will degenerate to a point where they can no longer be repaired.
b) A delay in the bridge and highway overhaul might allow repair workers to make use of new technologies that will be available in the future.
c) The cost of continuous maintenance of the badly corroding highways and bridges will exceed the costs of reconstruction.
d) Much of the cost of the reconstruction project was to be paid for with federal money that cannot be used for any other purpose.
e) The city has already purchased the raw materials and machinery needed for the reconstruction —— which constituted the bulk of the cost of the project.


Please help me answer the above question. I am confused between B and D.
My reasons:
Option B: Though it supports the delay in work, the explanation that workers amy be able to use new technologies has no link with the financial factor that is cited in the argument.

Option D: This option supports the financial deficit. If the federal budget for this project is not utilised then the deficit will not be soo bad!

Please help choose between the two.

Thanks.




What about OPTION "C"...According to this possibility also, delaying the expenditure will be beneficial to the city..because continual repair costs more....
avatar
AkshayChittoria
Intern
Intern
Joined: 28 May 2013
Posts: 10
Own Kudos [?]: 141 [0]
Given Kudos: 2
Send PM
Re: To reduce its budget deficit [#permalink] New post   30 Sep 2013, 07:53
Hi Vaibhav,

Option B is not at all related to the budget deficit, instead it takes you to think about a very different perspective about availing latest technology in future. Hence it is the right answer.

Option D is not correct. To explain this, consider a scenario where Central government gives certain amount of financial aid to a agency to repair roads of a city, therefore that agency is bound to use that money only for repairing purpose and it would be illegal if that agency uses that money for any other public welfare related project (like building children park, water pipeline repairing etc.) or improving its financial position.
So in this case also the municipal corporation can only use the allotted federal money for repairing roads because if they don't use it then the funds will lie idle in federal coffers or if they use it to reduce their budget deficit then it will be considered illegal.

I hope it is clear now :-D :-D
avatar
AkshayChittoria
Intern
Intern
Joined: 28 May 2013
Posts: 10
Own Kudos [?]: 141 [0]
Given Kudos: 2
Send PM
Re: To reduce its budget deficit [#permalink] New post   03 Oct 2013, 01:53
Himang,

According to the question, Muncipal govt. has decided to delay the expenditures on bridges and roads re-construction, so if they are not rebuilding anything then they will have to carry out regular maintenance on the old roads and bridges. The maintenance work will be very costly and the amount will exceed the cost of reconstruction & will ultimately increase the account deficit in future, hence it is not wise to delay the reconstruction project.
User avatar
L
egmat
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 4379
Own Kudos [?]: 30896 [0]
Given Kudos: 638
GMAT Date: 08-19-2020
Send PM
Re: To reduce its budget deficit [#permalink] New post   30 Jul 2020, 14:17
Expert Reply
kalravaibhav wrote:
To reduce its budget deficit, a municipal government is considering a plan to delay expenditures on a major reconstruction of the city's bridges and highways.

Each of the following, assuming that it is a realistic possibility, is a possible disadvantage to the city of the plan EXCEPT:

a) If left untended, some of the bridges will degenerate to a point where they can no longer be repaired.
b) A delay in the bridge and highway overhaul might allow repair workers to make use of new technologies that will be available in the future.
c) The cost of continuous maintenance of the badly corroding highways and bridges will exceed the costs of reconstruction.
d) Much of the cost of the reconstruction project was to be paid for with federal money that cannot be used for any other purpose.
e) The city has already purchased the raw materials and machinery needed for the reconstruction —— which constituted the bulk of the cost of the project.


Please help me answer the above question. I am confused between B and D.
My reasons:
Option B: Though it supports the delay in work, the explanation that workers amy be able to use new technologies has no link with the financial factor that is cited in the argument.

Option D: This option supports the financial deficit. If the federal budget for this project is not utilised then the deficit will not be soo bad!

Please help choose between the two.

Thanks.


We do not need to connect the options to budget deficit. It is only contextual information. What the question stem asks to do is only to identify which one is not a disadvantage of the plan to the city. It need not be related to the financial side. Therefore B is very much a valid answer.

Option D tells you that even if the reconstruction is delayed owing to budget deficit, they cannot use the money for anything else. Essentially, the municipal government will have cash with them, but will not be able to use it for anything else. Essentially this tells us that the city gets nothing out of the money. That is not good for the city either.
So, the answer is clearly B.
User avatar
L
egmat
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 4379
Own Kudos [?]: 30896 [0]
Given Kudos: 638
GMAT Date: 08-19-2020
Send PM
To reduce its budget deficit [#permalink] New post   30 Jul 2020, 14:20
Expert Reply
himang wrote:
kalravaibhav wrote:
To reduce its budget deficit, a municipal government is considering a plan to delay expenditures on a major reconstruction of the city's bridges and highways.

Each of the following, assuming that it is a realistic possibility, is a possible disadvantage to the city of the plan EXCEPT:

a) If left untended, some of the bridges will degenerate to a point where they can no longer be repaired.
b) A delay in the bridge and highway overhaul might allow repair workers to make use of new technologies that will be available in the future.
c) The cost of continuous maintenance of the badly corroding highways and bridges will exceed the costs of reconstruction.
d) Much of the cost of the reconstruction project was to be paid for with federal money that cannot be used for any other purpose.
e) The city has already purchased the raw materials and machinery needed for the reconstruction —— which constituted the bulk of the cost of the project.


Please help me answer the above question. I am confused between B and D.
My reasons:
Option B: Though it supports the delay in work, the explanation that workers amy be able to use new technologies has no link with the financial factor that is cited in the argument.

Option D: This option supports the financial deficit. If the federal budget for this project is not utilised then the deficit will not be soo bad!

Please help choose between the two.

Thanks.




What about OPTION "C"...According to this possibility also, delaying the expenditure will be beneficial to the city..because continual repair costs more....


What option C say is that cost of continuous maintenance is higher than cost of reconstruction. This is a statement that favours reconstruction. But the plan is to postpone reconstruction. That means the municipal government will have to spend more on maintenance. So, the option once again affirms that the plan is not good for the city.
GMAT Club Bot
gmatclubot
To reduce its budget deficit [#permalink]
30 Jul 2020, 14:20
Moderators:
GMATNinja
GMAT Club Verbal Expert
6927 posts
GMATNinjaTwo
GMAT Club Verbal Expert
238 posts
mysterymanrog
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions