BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Canadians now increasingly engage in “out shopping,”

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 1578
Joined: Sun Dec 28, 2008 1:49 am
Thanked: 82 times
Followed by:9 members
GMAT Score:720

Canadians now increasingly engage in “out shopping,”

by maihuna » Fri Jan 02, 2009 9:16 am
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.
Top
Source: — Critical Reasoning |
Legendary Member
Posts: 2467
Joined: Thu Aug 28, 2008 6:14 pm
Thanked: 331 times
Followed by:11 members

by cramya » Fri Jan 02, 2009 4:05 pm
I would go with D) since its must be true question and the answer choices can be a restatement of the premiseds or a logical conclusion from the premises.

Could be true or may be true or new info to be avoided

Canadians now increasingly engage in “out shopping -> the same brands of goods are available to Canadian shoppers across the border as are available in Canada

OA?
Top
User avatar
Legendary Member
Posts: 2134
Joined: Mon Oct 20, 2008 11:26 pm
Thanked: 237 times
Followed by:25 members
GMAT Score:730

Re: Canadians now increasingly engage in “out shopping,”

by logitech » Fri Jan 02, 2009 10:01 pm
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. Extra information

(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. Extra information

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada.[/quote] Extra information

So it boils down to A & C

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing. It might or not. So I will eliminate this as well


POE gives me the option A


(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.

This is possible and sentence is IF-THEN construction but I am not sure we can actually go this farther in a Must Be True question.

I wonder what others have to say
LGTCH
---------------------
"DON'T LET ANYONE STEAL YOUR DREAM!"
Top
Legendary Member
Posts: 2467
Joined: Thu Aug 28, 2008 6:14 pm
Thanked: 331 times
Followed by:11 members

by cramya » Fri Jan 02, 2009 11:04 pm
Thinking about it more u could be correct. A wins over D since A falls wihtinn the boundaries of what must be true from the premises whereas D does bring in new info about same products being available.

The same brands of goods are available to Canadian shoppers across the border as are available in Canada. -COULD BE TRUE but not MUST BE TRUE
Top
Legendary Member
Posts: 1159
Joined: Wed Apr 16, 2008 10:35 pm
Thanked: 56 times

by raunekk » Sat Jan 03, 2009 12:49 am
imo:A
Top
Legendary Member
Posts: 1578
Joined: Sun Dec 28, 2008 1:49 am
Thanked: 82 times
Followed by:9 members
GMAT Score:720

by maihuna » Sat Jan 03, 2009 3:19 am
OA is A only.

I was about to choose A as the best option out of PoE too. Though all seems unlikely.

Logitech: Why C is a contender?
The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.

Even for a moment I assume that out-purcchasing is turning out to be loss of revenue, no where in the premise it is mentioned that Same level of Social services needs to be maintained so no where it arises that government need to pay more? This flaw is discussed in A, and that is why A is the best option here,

D is clearly wrong as it talks about same brand which limits the avialability of brand across the border which is out of scope of given premises?
Top
Legendary Member
Posts: 833
Joined: Mon Aug 04, 2008 1:56 am
Thanked: 13 times

by vivek.kapoor83 » Mon Jan 05, 2009 7:03 am
I got down to A & D and in the end chooseAs when
Top
Legendary Member
Posts: 527
Joined: Mon Jun 02, 2008 9:14 am
Location: Atlanta
Thanked: 17 times

by pandeyvineet24 » Mon Jan 05, 2009 4:48 pm
Got to A and D, but chose D.
Top
User avatar
Legendary Member
Posts: 546
Joined: Sun Nov 16, 2008 11:00 pm
Location: New Delhi , India
Thanked: 13 times

by ronniecoleman » Mon Jan 05, 2009 9:59 pm
maihuna wrote:OA is A only.

I was about to choose A as the best option out of PoE too. Though all seems unlikely.

Logitech: Why C is a contender?
The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.

Even for a moment I assume that out-purcchasing is turning out to be loss of revenue, no where in the premise it is mentioned that Same level of Social services needs to be maintained so no where it arises that government need to pay more? This flaw is discussed in A, and that is why A is the best option here,

D is clearly wrong as it talks about same brand which limits the avialability of brand across the border which is out of scope of given premises?



WHAT IS THE SOURCE ?????

The question stems says best supported!!!!

best supported means:: must be true

any information outside the stem is not true...

A: says the cost will increase....what if the Canadian govt themselves contribute to the funds. ????

we are making assumptions in a must be true question i guess...

IMO D too is some sort of a assumption....
Admission champion, Hauz khaz
011-27565856
Top
Newbie | Next Rank: 10 Posts
Posts: 1
Joined: Fri Jan 09, 2009 7:38 am
Location: Rome

Canadians shopping OutMigration

by AndreaDB » Tue Jan 13, 2009 3:28 am
This is a :twisted: one.
I'm afraid it isn't one Kaplan 800's out of Scope of the Test:
you can find this question on GMAC Disclosed Test Code N°37.

I agree that No one seems to be likely correct.
A, IMO, Fail to give a point on the question for there is no reason about increasing the rate of Goods and Services Tax if the Boundary conditions remain unvariable ["Mantain", "Continue"].

I Choose B because oversee the "Reciprocal Tariff" and focused rushing on the impact on the price and its relation with business.

...
if someone would exercitate in Sentence Correction on the text above..
English has ever been a misterious matter for me, preferring Classic like Greek and Latin.
Bye
ronniecoleman wrote:
maihuna wrote:OA is A only.

I was about to choose A as the best option out of PoE too. Though all seems unlikely.

Logitech: Why C is a contender?
The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.

Even for a moment I assume that out-purcchasing is turning out to be loss of revenue, no where in the premise it is mentioned that Same level of Social services needs to be maintained so no where it arises that government need to pay more? This flaw is discussed in A, and that is why A is the best option here,

D is clearly wrong as it talks about same brand which limits the avialability of brand across the border which is out of scope of given premises?



WHAT IS THE SOURCE ?????

The question stems says best supported!!!!

best supported means:: must be true

any information outside the stem is not true...

A: says the cost will increase....what if the Canadian govt themselves contribute to the funds. ????

we are making assumptions in a must be true question i guess...

IMO D too is some sort of a assumption....
Top
Legendary Member
Posts: 1578
Joined: Sun Dec 28, 2008 1:49 am
Thanked: 82 times
Followed by:9 members
GMAT Score:720

by maihuna » Tue Jan 13, 2009 10:15 am
source is paper tests by gmac
Top
Junior | Next Rank: 30 Posts
Posts: 13
Joined: Fri May 04, 2007 10:58 pm

by leswm » Tue Jan 13, 2009 5:43 pm
A is correct b/c it's the only thing that must be true.

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.

Summary: Canadians are out-shopping, thus govt is collecting less taxes

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.
Basically this is saying, if people increasingly continue to out-shop, govt will need to increase tax rate if they need to maintain the same level of taxes they were collecting before. Must be true.

(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.
No one mentioned about what the other side of the border will do, so we so we can't make assumptions that they'll reciprocate with tariffs. Maybe they'll just refuse to sell.. we don't know.

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.
Maybe, maybe not. We don't know if the services will increase, no one said anything. So can't conclude for sure that it must be true.

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.
So what ...we're not discussing availability of brands and don't even know what they're buying.

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada.
No one said this, so can't conclude it must be true.
Top
Newbie | Next Rank: 10 Posts
Posts: 1
Joined: Mon Jan 12, 2009 8:50 am

by buskool » Tue Jan 13, 2009 8:55 pm
Although the OA is A I have my reservations.

In A. Why do we assume that to maintain the current social security payments the goods and services taxes needs to be raised. Why not capital gains taxes. I think this is a big assumption.

Wheras In D. It says that same brands are available. It doesnot say that they are the only brands. There is no limiting the brands as such.
Top
Legendary Member
Posts: 594
Joined: Thu Aug 14, 2008 11:51 pm
Thanked: 12 times

by nervesofsteel » Wed Jan 14, 2009 12:57 am
Yes should be A only

Question talks about Out shopping and Sale Taxes ...
If Canadian Govt wants to maintain standard of Canadian social services despite of loosing revenue through sale taxes due to out shopping...

Then they have to increase taxes on the goods sold in canada.. as a decrease in revenue from a decrease in sale should be compensated
increase in revenue from increase in sale tax...
Top
Junior | Next Rank: 30 Posts
Posts: 13
Joined: Fri May 04, 2007 10:58 pm

by leswm » Fri Jan 16, 2009 4:41 pm
buskool, the key to "must be true" kind of questions is to stick with the information they give you in the premises. Yes, I agree with you that they could increased capital taxes. In fact a better answer would have been something like.. govt will have to increase goods-and-services tax or find other revenue. But given the info we have, if they want to maintain the same level of services, then they're going to have to increase the goods-and-services tax.

In D, it's not relevant whether some brands are available in canada. The fact is people are out-shopping because it's cheaper elsewhere, regardless of whether or not the brands exist in canada. Nothing was said about brands in the arguments, so focus your answer on only the statements that were provided. Don't go beyond what they say. So don't make assumptions on brands, predictions on what the neighbors will do, etc
Top
Post new topic Post Reply