It is currently 19 Oct 2017, 11:54

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.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Too many words...aka, really hard

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Intern
Intern
avatar
Joined: 28 May 2010
Posts: 33

Kudos [?]: 35 [0], given: 15

Too many words...aka, really hard [#permalink]

Show Tags

New post 25 Jul 2010, 13:50
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

55% (01:01) correct 45% (01:25) wrong based on 31 sessions

HideShow timer Statistics

I think I'll just skip a question like this on the exam, but I really would love a little more explanation...

The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits. However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50 percent. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Which of the following, if true, supports the restaurant proprietors’ economic stance against the ban?

In the provinces that restricted alcoholic beverages, there was a short-term negative impact on restaurant visitation in the beginning of last year.

The sales tax in Prohibitionland is lower on food and beverages than it is on other consumer goods, such as clothing.

The consumption of alcoholic beverages in Prohibitionland has been on a gradual decline the last 20 years.

The restrictions on alcoholic beverages enacted last year allowed for the service of drinks beginning around dinnertime each evening.

Overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions on alcoholic beverages than in the rest of Prohibitionland last year.
[Reveal] Spoiler: OA

Kudos [?]: 35 [0], given: 15

Manager
Manager
avatar
Joined: 09 Jul 2010
Posts: 141

Kudos [?]: 33 [0], given: 3

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 25 Jul 2010, 21:41
knabi wrote:
I think I'll just skip a question like this on the exam, but I really would love a little more explanation...

The restrictions on alcoholic beverages enacted last year allowed for the service of drinks beginning around dinnertime each evening.

Overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions on alcoholic beverages than in the rest of Prohibitionland last year.


E is contradicting the facts stated in the argument. As per argument sales tax increased by an avg of 50% in areas where restrictions were enacted, whereas E maintains that overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions. There4 E ruled out.

Clearly D it is. The analogy is- if X then Y can also be if Z then Y. The service of drinks beginning around dinnertime each evening increased thereby increased the sales tax by avh 50%. This argument used the evidence of alcoholic beverages to reach the conclusion about another. Here two things(alcoholic beverages and other drinks) are similar enough to sustain the comparison.
_________________

consider cudos if you like my post

Kudos [?]: 33 [0], given: 3

Manager
Manager
User avatar
Joined: 11 May 2010
Posts: 216

Kudos [?]: 141 [0], given: 11

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 26 Jul 2010, 01:01
I pick D. :D I have done this question before.

Argument:

Proprietor: Ban alcohol is bad for business.
Law maker: Nonsense, last year, when there is the restriction on alcohol, the sales tax increase by 50%. (so it shouldn't be bad for business, if not to say, good for business)

D - Show that there is a different between "restriction" and "ban", restriction still allow business to sell at night time and thus sales tax increased, but now, totally banning will surely deplete the business.

Kudos [?]: 141 [0], given: 11

Manager
Manager
User avatar
Joined: 06 Oct 2009
Posts: 68

Kudos [?]: 35 [0], given: 5

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 26 Jul 2010, 06:54
Yes, I'm for D too
_________________

+1 kudos me if this is of any help...

Kudos [?]: 35 [0], given: 5

Manager
Manager
avatar
Joined: 06 Jul 2010
Posts: 102

Kudos [?]: 8 [0], given: 9

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 26 Jul 2010, 08:28
I guess this question is from the OG.. I would pick D as well... I think E does not support the argument in anyway

Kudos [?]: 8 [0], given: 9

Director
Director
avatar
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 26 Nov 2009
Posts: 956

Kudos [?]: 902 [0], given: 36

Location: Singapore
Concentration: General Management, Finance
Schools: Chicago Booth - Class of 2015
GMAT ToolKit User
Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 26 Jul 2010, 11:38
Nice one !
The rise in sales tax was not an accident. It happened bcos the restriction allowed alcohol sales. So it supports the proprietor's argument that totally banning alcohol will hurt the Govt sales tax as well as their profits.

Kudos [?]: 902 [0], given: 36

Manager
Manager
User avatar
Joined: 12 Jun 2007
Posts: 124

Kudos [?]: 78 [0], given: 2

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 26 Jul 2010, 13:11
straight away go and mark D :)

Kudos [?]: 78 [0], given: 2

Manager
Manager
User avatar
Joined: 11 Feb 2008
Posts: 89

Kudos [?]: 49 [0], given: 2

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 27 Jul 2010, 03:31
this is a kaplan CAT question..encontered it in my CAT1

in my test i chose C in a hurry. But D actually shows that "banning the service of alcoholic beverages" was also done last year to only at nights. Already there profits and margin are low
_________________

-------------------------------------------------------------------------------------------
Amar
http://amarnaik.wordpress.com

Kudos [?]: 49 [0], given: 2

Manager
Manager
avatar
Joined: 08 Jan 2010
Posts: 177

Kudos [?]: 3 [0], given: 13

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 27 Jul 2010, 22:17
Good explanations I picked E ............but was skeptic myself ........

If there is a difference between Ban and restrictions ..then D ought to be correct ......

Kudos [?]: 3 [0], given: 13

Manager
Manager
User avatar
Joined: 04 Apr 2010
Posts: 159

Kudos [?]: 222 [0], given: 31

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 28 Jul 2010, 15:52
Good explanation!
+1
_________________

Consider me giving KUDOS, if you find my post helpful.
If at first you don't succeed, you're running about average. ~Anonymous

Kudos [?]: 222 [0], given: 31

Senior Manager
Senior Manager
User avatar
Affiliations: Volunteer Operation Smile India, Creative Head of College IEEE branch (2009-10), Chief Editor College Magazine (2009), Finance Head College Magazine (2008)
Joined: 26 Jul 2010
Posts: 459

Kudos [?]: 174 [0], given: 24

Location: India
WE2: Entrepreneur (E-commerce - The Laptop Skin Vault)
Concentration: Marketing, Entrepreneurship
GMAT 1: 710 Q49 V38
WE: Marketing (Other)
GMAT ToolKit User
Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 12 Sep 2010, 06:10
Still not too clear on this
_________________

Kidchaos

http://www.laptopskinvault.com

Follow The Laptop Skin Vault on:
Facebook: http://www.facebook.com/TheLaptopSkinVault
Twitter: http://www.twitter.com/LaptopSkinVault

Consider Kudos if you think the Post is good
Unless someone like you cares a whole awful lot. Nothing is going to change. It's not. - Dr. Seuss

Kudos [?]: 174 [0], given: 24

Manager
Manager
User avatar
Joined: 22 Jul 2010
Posts: 137

Kudos [?]: 10 [0], given: 13

Schools: Wharton,Insead,LBS,IMD,Kellog,Haas,Duke
Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 12 Sep 2010, 07:42
nice question....
_________________

Whatever you do, Do it SINCERELY!!!

GOD help those who help themselves....:)

Kudos [?]: 10 [0], given: 13

Manager
Manager
avatar
Joined: 08 Feb 2010
Posts: 129

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

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 16 Sep 2010, 06:53
ya nice question i think D

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

Senior Manager
Senior Manager
User avatar
Status: Upset about the verbal score - SC, CR and RC are going to be my friend
Joined: 30 Jun 2010
Posts: 316

Kudos [?]: 23 [0], given: 6

Re: Too many words...aka, really hard [#permalink]

Show Tags

New post 16 Sep 2010, 07:54
D for me too

kidchaos wrote:
Still not too clear on this


The line of reasoning is
The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits.
However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50 percent. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Only D address this.
_________________

My gmat story
MGMAT1 - 630 Q44V32
MGMAT2 - 650 Q41V38
MGMAT3 - 680 Q44V37
GMATPrep1 - 660 Q49V31
Knewton1 - 550 Q40V27

Kudos [?]: 23 [0], given: 6

Re: Too many words...aka, really hard   [#permalink] 16 Sep 2010, 07:54
Display posts from previous: Sort by

Too many words...aka, really hard

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.