ExpertsGlobal5
Pittsville, a historic town, managed to keep its expenditures low, as it was not required to maintain or improve transport routes within the town. Five years ago, a state ordinance was passed, requiring the town to refurbish and expand its transport routes, significantly increasing the town’s expenditure. Yet, the town achieved a marked increase in its savings since then.
Which of these statements, if true, best resolved the paradox seen in the above passage?
A. The ordinance mandated that at least one third of a town’s expenditure go towards maintaining transport routes, but only a small percentage of transport expenditure was mandated to go towards the routes used to reach the town’s historic locations.
B. Most of the town’s transport routes are connected to areas of high population density and the routes' upgrade required considerable expenses in order to ensure public safety.
C. After the ordinance passed, the town’s expenditures other than those associated with transport routes increased significantly.
D. After the ordinance requiring the town to refurbish and expand the transport routes within itself, the town committed to also refurbishing its outer roadways.
E. During the last five years, Pittsville’s tourism industry has significantly benefitted from improved access to the town’s historically famous sites.
|
This Daily Butler Question was provided by
Experts' Global
|
|
Sponsored
|
|
|
Pittsville, a historic town, Usually kept the expenditures as low as possible. Due to which, the roads within town are also not maintained or improved within the town.
5 yrs ago, an ordinance was passed , requiring town to refurbish and expand its transport route, which eventually resulted in increased expenditure for Pittsville.
Despite this expenditure, the savings have increased.
We know that,
Savings = Revenue - Expenditure.
Only option to meet Savings increase is an increase in Revenue or there might be cases where some grant or external finding by government or world heritage organisations like UNESCO, might have added value to the revenue of pittsville.
A. The ordinance mandated that at least one third of a town’s expenditure go towards maintaining transport routes, but only a small percentage of transport expenditure was mandated to go towards the routes used to reach the town’s historic locations.
This option speaks about the expenditure side, mentioning the expenditure was meagre and it’s not high enough. So, we can say the savings have not dropped considerably. But, we see a saving increase, and this is not mentioned in the option. Thus, wrong.
B. Most of the town’s transport routes are connected to areas of high population density and the routes' upgrade required considerable expenses in order to ensure public safety.
This mentions the status quo, and the proportion of expenditures needed to meet safety standards for public transportation. Does this address the expenditure magnitude, or source of revenue or to be precise savings parameter? The answer still remains void and vague. Hence, Wrong.
C. After the ordinance passed, the town’s expenditures other than those associated with transport routes increased significantly.
While this option hits the increase in expenditures, doesn’t mention anything about savings increase as such. With an increased expenditure, we can be sure the savings is diminishing, until unless external revenue sources are activated to compensate the loss. Hence, wrong.
D. After the ordinance requiring the town to refurbish and expand the transport routes within itself, the town committed to also refurbishing its outer roadways.
This option speaks about the proposed plan and ways how the expenditure is being implemented. Does this address the savings increase scenario. No. Hence, Wrong.
E. During the last five years, Pittsville’s tourism industry has significantly benefitted from improved access to the town’s historically famous sites.This option is the correct answer. As it clearly mentions that despite the expenditure, the revenue has been increasing. As more tourists thronged the Pittsville town, so that increasing the revenue. Thus, the savings post expenditure has shown a positive change.
Option E