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When a city experiences a sharp decline in population, the

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Re: When a city experiences a sharp decline in population, the  [#permalink]

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New post 11 Jun 2017, 20:57
Vineetk wrote:
When a city experiences a sharp decline in population, the city's tax revenues, which pay for such city services as police protection and maintenance of water lines, also decrease. The area to be policed and the number and length of the water lines to be maintained, however, do not decrease. Attempting to make up the tax revenue lost by raising tax rates is not feasible, since higher tax rates would cause even more residents to leave.

The information given most strongly supports which of the following general claims?

A. If, in a city with sharply declining population, police protection and water line maintenance do not deteriorate, some other service previously provided by the city will deteriorate or be eliminated.

B. If a city's tax rates are held stable over a period of time, neither the population nor the levels of city services provided will tend to decline over that period.

C. If a city's population declines sharply, police protection and water line maintenance are the services that deteriorate most immediately and most markedly.

D. A city that suffers revenue losses because of a sharp decline in population can make up some of the lost tax revenue by raising tax rates, provided the city's tax rates are low in relation to those of other cities.

E. A city that is losing residents because tax rates are perceived as too high by those residents can reverse this population trend by bringing its tax rates down to a more moderate level.


both d and e are a probability not a certainty because
in d, the passage dose not make clear that residents move to lower tax cities
in e, moderate tax level can be higher than those in other cities.
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Re: When a city experiences a sharp decline in population, the  [#permalink]

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New post 11 Sep 2017, 02:06
Hi verbal experts - I still find D to be a strong contender. Could you share how you'd work through this question? Thanks!
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Re: When a city experiences a sharp decline in population, the  [#permalink]

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New post 11 Sep 2017, 04:19
imawolf wrote:
Hi verbal experts - I still find D to be a strong contender. Could you share how you'd work through this question? Thanks!


The key of getting an inference question correct is to track and note every single word.
Its already stated that "Attempting to make up the tax revenue lost by raising tax rates is not feasible" - so, D discusses a "not feasible" alternative. Eliminate D.

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New post 16 Sep 2017, 23:52
godot53 wrote:
imawolf wrote:
Hi verbal experts - I still find D to be a strong contender. Could you share how you'd work through this question? Thanks!


The key of getting an inference question correct is to track and note every single word.
Its already stated that "Attempting to make up the tax revenue lost by raising tax rates is not feasible" - so, D discusses a "not feasible" alternative. Eliminate D.

Cheers !!


Hi,

It is stated that raising the tax rates is not feasible since the higher rates would cause even more residents to leave. But what if the rates in the other cities are higher? Then higher tax rates cannot be a reason for them to leave and they would be better off in the current city itself. What is wrong with this line of thought?
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When a city experiences a sharp decline in population, the  [#permalink]

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New post 17 Sep 2017, 01:22
Richak91 wrote:
Hi,

It is stated that raising the tax rates is not feasible since the higher rates would cause even more residents to leave.


Yes !!

Richak91 wrote:
But what if the rates in the other cities are higher?


This is an assumption and cannot be directly inferred from the passage. According to the passage, The "higher tax" [a comparison keyword] is not in comparison with "taxes of other cities" but between "past and present" [ before tax increase and after tax increase].
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Re: When a city experiences a sharp decline in population, the  [#permalink]

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New post 02 Dec 2017, 03:47
Vineetk wrote:
When a city experiences a sharp decline in population, the city's tax revenues, which pay for such city services as police protection and maintenance of water lines, also decrease. The area to be policed and the number and length of the water lines to be maintained, however, do not decrease. Attempting to make up the tax revenue lost by raising tax rates is not feasible, since higher tax rates would cause even more residents to leave.


The information given most strongly supports which of the following general claims?

A. If, in a city with sharply declining population, police protection and water line maintenance do not deteriorate, some other service previously provided by the city will deteriorate or be eliminated.
the given statements tell us that, with a smaller population, there will be less tax money available. if we spend the SAME amount of tax money on policing and water-line maintenance, then, less tax revenue will be available for everything else.

this implies choice A.


B. If a city's tax rates are held stable over a period of time, neither the population nor the levels of city services provided will tend to decline over that period.
the passage gives no support to this idea.
in fact, the passage supports the idea that population declines can just happen -- without ANY meaningful relation to tax rates. (the passage starts with "When a city experiences a sharp decline in population..." -- thus implying this is something that can just occur, without regard to what tax rates are doing at the time.)

Also, you can eliminate this choice just by pure common sense: it's a totally ridiculous statement in the real world. (obviously, just keeping tax rates constant isn't going to stop people from moving out of a city!).


C. If a city's population declines sharply, police protection and water line maintenance are the services that deteriorate most immediately and most markedly.
Nope. Also, MOST is a very strong word for INFERENCE Questions. Even here in this choice its too strong AND also the passage gives no support to this idea.

D. A city that suffers revenue losses because of a sharp decline in population can make up some of the lost tax revenue by raising tax rates, provided the city's tax rates are low in relation to those of other cities.
Not relevant/out of scope
E. A city that is losing residents because tax rates are perceived as too high by those residents can reverse this population trend by bringing its tax rates down to a more moderate level.
choice E should be a quick elimination, because choice E deals with a situation that is completely unrelated to anything described in any of the existing statements.
i.e., choice E describes a situation in which people CURRENTLY PERCEIVE tax rates as "too high". none of the existing choices deals with any such situation.
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Re: When a city experiences a sharp decline in population, the  [#permalink]

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New post 28 Oct 2018, 23:36
Vineetk wrote:
When a city experiences a sharp decline in population, the city's tax revenues, which pay for such city services as police protection and maintenance of water lines, also decrease. The area to be policed and the number and length of the water lines to be maintained, however, do not decrease. Attempting to make up the tax revenue lost by raising tax rates is not feasible, since higher tax rates would cause even more residents to leave.

The information given most strongly supports which of the following general claims?

A. If, in a city with sharply declining population, police protection and water line maintenance do not deteriorate, some other service previously provided by the city will deteriorate or be eliminated.

B. If a city's tax rates are held stable over a period of time, neither the population nor the levels of city services provided will tend to decline over that period.

C. If a city's population declines sharply, police protection and water line maintenance are the services that deteriorate most immediately and most markedly.

D. A city that suffers revenue losses because of a sharp decline in population can make up some of the lost tax revenue by raising tax rates, provided the city's tax rates are low in relation to those of other cities.

E. A city that is losing residents because tax rates are perceived as too high by those residents can reverse this population trend by bringing its tax rates down to a more moderate level.


Premises:
Sharp decline in population causes tax revenue to reduce.
But the areas which this revenue supports is still the same such as police protection and maintenance of water lines.
We cannot make up by increasing tax rate since more people will leave.

We need a conclusion. Something that follows from what is given. There should be no new information.

A. If, in a city with sharply declining population, police protection and water line maintenance do not deteriorate, some other service previously provided by the city will deteriorate or be eliminated.
The tax revenues decrease when population decreases. Since the revenues cannot be recovered by raising tax rate (since it will mean more people leaving and consequently lower collection points), it means the revenue will reduce. The need for the revenue does not reduce for at least some services. Hence, some services will certainly suffer. If police protection and water line maintenance do not suffer, something will suffer.
This follows what is given to us in the argument. There is nothing called "this option is incorrect due to usage of extreme language". If the premises give you extreme data, the option will use extreme language.
If the premises give you: "If A happens, B will happen." and "A has happened", what will you conclude? That B WILL HAPPEN. Can you say that the language is too extreme here? No.

B. If a city's tax rates are held stable over a period of time, neither the population nor the levels of city services provided will tend to decline over that period.
We do not know what causes the population to decline. Irrelevant.

C. If a city's population declines sharply, police protection and water line maintenance are the services that deteriorate most immediately and most markedly.
Not known. When the revenue declines, which services take the hit, we don't know. All we can say is that some service will take a hit.

D. A city that suffers revenue losses because of a sharp decline in population can make up some of the lost tax revenue by raising tax rates, provided the city's tax rates are low in relation to those of other cities.
What happens when the city increases tax rate, we cannot say. The premises give us that we cannot make up for lost revenue by increasing tax rate. Are we able to make up for it partially provided the tax rate still remains low, we cannot say. Note that we have no information on why people choose a certain city to live in. Perhaps its tax rate is lower but the quality of air and water isn't that great. Perhaps its cost of living is high. What happens when the tax rate is increased slightly (but is still less than other cities), overall it may not make financial sense for people to stay. The point is, we don't know how people will react if the taxes are raised even a tiny bit. We do know that raising tax rates cannot make up the loss in revenue and that is all. The argument tells us nothing else. We have to stick to the universe created by our argument.

E. A city that is losing residents because tax rates are perceived as too high by those residents can reverse this population trend by bringing its tax rates down to a more moderate level.
Irrelevant. We don't know how to reverse population trend and whether it can be reversed in the first place.

Answer (A)
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