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Fuqua
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HIMALAYA
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Fuqua
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fUQUA, here is a good start up on logic rules/parallel processing. Hope this helps.

https://www.gmatclub.com/phpbb/viewtopic.php?t=14547
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saurabhmalpani
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the answer is between A/D IMO it should be A.

Can someone jump and exaplain y D can be correct or vice versa.
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Fuqua
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Folaa3,thanks a lot.Looks like a really helpful thread.
By the way,OA is D.
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Can someone explain how it is D?

Thanks
GA
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Fuqua


If we reduce the rate of income taxation, people will spend a larger portion of their gross incomes on consumer goods.This will stimulate economic growth and result in higher salaries and thus in higher government revenues, despite a lower rate of taxation.

Which one of the following arguments most closely resembles the reasoning in the statements above?

A)If we reduce the amount of overtime our employees work, production costs will decline and our total income will thus increase.

D)If we give our employees more paid holidays, their efficiency while actually on the job will improve and our total productivity will thus increase.


Stem: lower tax (down) --> more spending (up) ---> more salary (up) ---> more government revenue (up).

A. lower overtime (down) --> lower cost (down) --- > more income (up)

D. less working days (down) ---> more efficiency (up) ---> more productivity (up)

D is exactly same as Stem, so should be D.
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