Official Solution:
Due to a sharp rise in gasoline prices, commuters driving to work in the city center are experiencing significant increases in transportation costs, reducing their disposable income for other expenses. To prevent a downturn in the local economy, the city council has decided to suspend fares on all public transportation for the next three months. The reasoning is clear: if commuters can travel to work more economically, they will have more funds to spend in other economic sectors, thereby mitigating the overall impact of rising gasoline prices on the city's economy.
Which of the following is an assumption underlying the city council's plan to prevent an economic slowdown?
A. Three months is a sufficient period for gasoline prices to stabilize.
B. Commuters who typically drive to work will switch to public transportation if it is free.
C. Other factors in the local economy are influencing gasoline prices.
D. Parking costs in the city will remain relatively stable.
E. People who work in the city are more likely to drive than use public transportation.
Situation: The city council has responded to an increase in gasoline prices by making public transportation free. The council hopes that people will spend the money they do not pay for expensive gasoline in other sectors of the local economy.
Reasoning:
Which is an assumption on which the plan is based? The plan will work only if commuters take advantage of the offer of free public transportation. If the commuters who drive to work opt to continue driving in spite of the higher gasoline prices, they will actually have
less money to contribute to the local economy. This choice on the part of commuters could cause the plan to fail.
A. The time needed for gasoline prices to stabilize is irrelevant to the soundness of the plan.
B. CORRECT. This option correctly identifies the assumption that commuters will automatically choose free public transportation over driving themselves.
C. The factors affecting the price of gasoline are not directly related to the soundness of the council’s plan.
D. The passage is not concerned with the cost of parking in the city.
E. This option actually identifies a fact that could
undermine the soundness of the plan; it is not an assumption on which the plan is based.
Answer: B