Section - 2 Problem - 3

camitava · Posted: Wed Nov 28, 2007 4:46 am Post subject: Section - 2 Problem - 3

Again one goes -

Sales taxes tend to be regressive, affecting poor people more severely than wealthy people. When all purchases of consumer goods are taxed at a fixed percentage of the purchase price, poor people pay a larger proportion of their income in sales taxes than wealthy people do.
It can be correctly inferred on the basis of the statements above that which of the following is true?
(A) Poor people constitute a larger proportion of the taxpaying population than wealthy people do.
(B) Poor people spend a larger proportion of their income on purchases of consumer goods than wealthy people do.
(C) Wealthy people pay, on average, a larger amount of sales taxes than poor people do.
(D) The total amount spent by all poor people on purchases of consumer goods exceeds the total amount spent by all wealthy people on consumer goods.
(E) The average purchase price of consumer goods bought by wealthy people is higher than that of consumer goods bought by poor people.

OA after some discussion ...

samirpandeyit62 · Posted: Wed Nov 28, 2007 5:06 am Post subject:

B IMO coz it is supported by all the premises in the arguement.

camitava · Posted: Thu Nov 29, 2007 2:08 am Post subject:

Thanks Samir! You have pointed out a point here. Yop! All the comparisons except B are between population (A) and amount of purchase (D). By the way, we can initially easily eliminate C and E because they are nor at all in the sync with the arguments. So the option left is - B. And it is also comparing between the income of poor and rich people - the one which is quite supportive according to the argument.

camitava · Posted: Thu Nov 29, 2007 2:11 am Post subject:

Sorry forgot to mention the OA. Its B.

samirpandeyit62 · Posted: Thu Nov 29, 2007 2:37 am Post subject:

Thanks Amitava, getting a CR Q correct gives me more pleasure than getting 10 math questions right Very Happy

.

mayonnai5e · Posted: Thu Nov 29, 2007 11:45 am Post subject:

samirpandeyit62 · Posted: Thu Nov 29, 2007 10:45 pm Post subject:

hey thanks mayonnai5e!