Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2308:00 PM PDT
-09:00 PM PDT
Video explanations + diagnosis of 10 weakest areas + 150+ short videos + study plan!
Apr 2301:30 AM EDT
-02:30 AM EDT
Struggling with GMAT Verbal as a non-native speaker? Harsh improved his score from 595 to 695 in just 45 days—and scored a 99 %ile in Verbal (V88)! Learn how smart strategy, clarity, and guided prep helped him gain 100 points.
Apr 2512:30 AM EDT
-01:30 AM EDT
At one point, she believed GMAT wasn’t for her. After scoring 595, self-doubt crept in and she questioned her potential. But instead of quitting, she made the right strategic changes. The result? A remarkable comeback to 695. Check out how Saakshi did it.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
02 Mar 2019, 22:58
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
73% (02:10) correct
27%
(02:29)
wrong
based on 566
sessions
History
Date
Time
Result
Not Attempted Yet
For the third year in a row, the town of Springdale is experiencing a shortfall in its school budget. The town council has proposed raising the funds to meet this year's needs by increasing the meals tax charged by local restaurants from 5 to 7.5 percent. While it is certainly necessary to raise additional funding for Springdale's schools, the town council's current plan is ill-advised. A significant percentage of Springdale's restaurant clientele are tourists, who will derive no benefits from improved schools in Springdale.
Which of the following, if true, would cast the most doubt on the effectiveness of the town council's plan to address the Springdale school budget shortfall by raising the local meals tax?
A. According to the town's bylaws, any proposed tax increase must be put through a public vote during a general election, which could delay the implementation of the new tax by several months.
B. To ensure compliance with the new rate, the town will have to employ additional auditors to review restaurants' quarterly tax filings.
C. Managers of local chain and franchise restaurants cannot revise menu prices without permission from their parent companies.
D. The last time the meals tax was raised in Springdale, restaurants reported a 15 percent decrease in revenues during the first year following the increase, while those in neighboring towns experienced increases as much as 25 percent.
E. The Springdale Merchant's association, to which most local restaurant owners belong, is strongly opposed to the increase.
Which of the following, if true, would cast the most doubt on the effectiveness of the town council's plan to address the Springdale school budget shortfall by raising the local meals tax?
A. According to the town's bylaws, any proposed tax increase must be put through a public vote during a general election, which could delay the implementation of the new tax by several months.
B. To ensure compliance with the new rate, the town will have to employ additional auditors to review restaurants' quarterly tax filings.
C. Managers of local chain and franchise restaurants cannot revise menu prices without permission from their parent companies.
D. The last time the meals tax was raised in Springdale, restaurants reported a 15 percent decrease in revenues during the first year following the increase, while those in neighboring towns experienced increases as much as 25 percent.
E. The Springdale Merchant's association, to which most local restaurant owners belong, is strongly opposed to the increase.
05 Mar 2019, 00:29
Kudos
Bookmarks
Quote:
The right answer is D. The question asks us to pick something that weakens the conclusion, and with any such CR question, part of the challenge is to correctly identify the conclusion. In this case, it is that increasing the meal tax will raise funds for the schools. Any other info, such as whether the restaurants will do well, or who will benefit or be hurt aside from the schools, is irrelevant.
Hence, what we want to look for is anything that suggests this tax will not raise money for the school.
Option A - This is about a delay in implementing the tax, not whether the tax will work. Irrelevant and therefore OUT
Option B - Again, it's about a complication in implementing the tax, not whether it will work. Irrelevant and therefore OUT
Option C - Gonna sound like a stuck record, but this is once again an option about implementing the tax. Irrelevant and therefore OUT
Option D - This links the outcome of raising a tax with decreased revenue. This suggests that if done again, the revenue, and therefore tax revenue would drop, resulting in less money raised for the schools. This actually addresses the conclusion and is therefore CORRECT
Option E - This simply suggests the restaurants may not benefit from this tax being put in place. However, we don't care about this since the primary focus is solely on whether it would raise money for schools or not. OUT
With any question related to strengthening or weakening the conclusion, one of the common traps the GMAT places is to obscure the exact conclusion with irrelevant data. Once this trap is identified, the task becomes a whole lot easier!
- Matoo from CrackVerbal
KeyurJoshi
GMAT 1: 710 Q49 V38
Posts: 143
28 Jun 2020, 21:49
Kudos
Bookmarks
Isnt B correct, employing additional auditors increasing the overall cost of Springdales town councils and having no effect on school budget?
