Property taxes are typically set at a flat rate per $ 1,000 of officially assessed value. Reassessments should
be frequent in order to remove distortions that arise when property values change at differential rates. In practice,
however, reassessments typically occur when they benefit the government - that is, when their effect is to
increase total tax revenue.
If the statements above are true, which of the following describes a situation in which a reassessment should
occur but is unlikely to do so?
(A) Property values have risen sharply and uniformly.
(B) Property values have all risen - some very sharply, some less so.
(C) Property values have for the most part risen sharply yet some have dropped slightly.
(D) Property values have for the most part dropped significantly; yet some have risen slightly.
(E) Property values have dropped significantly and uniformly.
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delhiboy1979
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lunarpower
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in this problem, you just have to take the statements EXACTLY as given, and do little more than follow directions.
this is an interesting problem type -- i haven't seen too many like this on the gmat.
--
they said: (emphasis mine)
--
they said: (emphasis mine)
so, they typically WON'T occur when they will DECREASE the tax revenue.
--
we're looking for a situation...
property values change at differential rates
the asssessment will DECREASE the tax revenue
that's what's happening in choice (d).
the orange part is satisfied, since there's a discrepancy (some values have gone down; others have gone up; hence "differential rates")
the blue part is also satisfied, since the decreases will definitely outweigh the increases, lowering the overall tax revenue.
there you go.
this is an interesting problem type -- i haven't seen too many like this on the gmat.
--
they said: (emphasis mine)
there you have it -- the assessment SHOULD be made when "property values change at differential rates".Reassessments should be frequent in order to remove distortions that arise when property values change at differential rates.
--
they said: (emphasis mine)
there you have it -- they TYPICALLY OCCUR when they will "increase total tax revenue".however, reassessments typically occur when they benefit the government - that is, when their effect is to
increase total tax revenue.
so, they typically WON'T occur when they will DECREASE the tax revenue.
--
we're looking for a situation...
let's translate:in which a reassessment should occur but is unlikely to do so
property values change at differential rates
the asssessment will DECREASE the tax revenue
that's what's happening in choice (d).
the orange part is satisfied, since there's a discrepancy (some values have gone down; others have gone up; hence "differential rates")
the blue part is also satisfied, since the decreases will definitely outweigh the increases, lowering the overall tax revenue.
there you go.
Ron has been teaching various standardized tests for 20 years.
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vineetbatra
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E is not the answer because the argument says that "Reassessments shouldmj41 wrote:Can someone please explain what is wrong with E
be frequent in order to remove distortions that arise when property values change at differential rates"
In E "Property values have dropped significantly and uniformly."
So the property values have not changed at differential rates, rather they have fallen uni formally so there won't even be a reassessment. Also, instinctively E is just too easy an answer to be correct.
Ron - your thoughts on this will be appreciated.
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lunarpower
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this is absolutely correct.vineetbatra wrote:In E "Property values have dropped significantly and uniformly."
So the property values have not changed at differential rates, rather they have fallen uniformly...
in the color code of my post above: this answer choice satisfies the blue requirement, but not the orange one.
when you're teaching yourself to improve at critical reasoning, you should try to avoid thinking "instinctively" about anything.Also, instinctively E is just too easy an answer to be correct.
thinking instinctively, by the very definition of "instinctively", will earn you a score no higher than that at which you start your test prep! (i.e., the whole point of test preparation is to overcome those "instincts" that point you in the wrong direction, and learn to answer the questions in ways that are sometimes counterintuitive!)
Ron has been teaching various standardized tests for 20 years.
--
Pueden hacerle preguntas a Ron en castellano
Potete chiedere domande a Ron in italiano
On peut poser des questions à Ron en français
Voit esittää kysymyksiä Ron:lle myös suomeksi
--
Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.
Yves Saint-Laurent
--
Learn more about ron
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Pueden hacerle preguntas a Ron en castellano
Potete chiedere domande a Ron in italiano
On peut poser des questions à Ron en français
Voit esittää kysymyksiä Ron:lle myös suomeksi
--
Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.
Yves Saint-Laurent
--
Learn more about ron
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lunarpower
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also, as a bonus, i feel obliged to point out the following erroneous structure in your writing:
i.e.,
INDEPENDENT CLAUSE, therefore INDEPENDENT CLAUSE --> correct in british english, but incorrect in american english
INDEPENDENT CLAUSE; therefore, INDEPENDENT CLAUSE --> correct in american english
i'm not trying to nitpick here; this is actually one of the very few constructions actually tested on the gmat that is incorrect in american english BUT correct in british english.
i think this construction is correct in british english, but it is incorrect in american english. in american english, you would have to write this sentence as follows:the property values have not changed at differential rates, rather they have fallen uniformly
the same is true for other such conjunctions, most notably "however", "nevertheless", and "therefore".the property values have not changed at differential rates; rather, they have fallen uniformly
i.e.,
INDEPENDENT CLAUSE, therefore INDEPENDENT CLAUSE --> correct in british english, but incorrect in american english
INDEPENDENT CLAUSE; therefore, INDEPENDENT CLAUSE --> correct in american english
i'm not trying to nitpick here; this is actually one of the very few constructions actually tested on the gmat that is incorrect in american english BUT correct in british english.
Ron has been teaching various standardized tests for 20 years.
--
Pueden hacerle preguntas a Ron en castellano
Potete chiedere domande a Ron in italiano
On peut poser des questions à Ron en français
Voit esittää kysymyksiä Ron:lle myös suomeksi
--
Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.
Yves Saint-Laurent
--
Learn more about ron
--
Pueden hacerle preguntas a Ron en castellano
Potete chiedere domande a Ron in italiano
On peut poser des questions à Ron en français
Voit esittää kysymyksiä Ron:lle myös suomeksi
--
Quand on se sent bien dans un vêtement, tout peut arriver. Un bon vêtement, c'est un passeport pour le bonheur.
Yves Saint-Laurent
--
Learn more about ron
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vineetbatra
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