13. Canadians now increasingly engage in “out shopping,” which is shopping across the national border, where prices are lower. Prices are lower outside of Canada in large part because the goods-and-services tax that pays for Canadian social services is not applied.
Which one of the following is best supported on the basis of the information above?
(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.
(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.
(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.
(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.
(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada.
why would D not be a good choice ?
A
out shopping
This topic has expert replies
-
- Master | Next Rank: 500 Posts
- Posts: 117
- Joined: Mon Oct 27, 2008 5:08 pm
- Thanked: 1 times
-
- Junior | Next Rank: 30 Posts
- Posts: 19
- Joined: Sun Nov 16, 2008 8:00 am
- Thanked: 1 times
- GMAT Score:680
The argument just says that Canadians are shopping across the national border to avoid a specific tax. The argument does NOT tell anything about the 'brand of goods' (as stated in choice D). So, although it may be true that same brands are available across the border, it is too strong to conclude so.
If the 'out shopping' increases, then the Canadian government will not get enough money from the tax as anticipated. This would lead them to increase the tax amount, esp when the Canadian social services are to be maintained. This is explained in Choice A.
Hope this helps.
If the 'out shopping' increases, then the Canadian government will not get enough money from the tax as anticipated. This would lead them to increase the tax amount, esp when the Canadian social services are to be maintained. This is explained in Choice A.
Hope this helps.