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City population decrease

Expert replies
by EricKryk » Tue Feb 18, 2014 9:47 am
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 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.
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Source: — Critical Reasoning |

by Patrick_GMATFix » Tue Feb 18, 2014 10:04 am
Do not mistake this for a Strengthen question. Read the question carefully and you will notice that the information in the passage is used to support a claim in the answer choices. This is an inference question (it asks for a conclusion that can be made from the given premises). For such questions, pick the answer that is best supported (that can most easily be proven without making further assumptions)

The full solution below is taken from the GMATFix App.

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by [email protected] » Tue Feb 18, 2014 5:31 pm
Hi EricKryk,

This is an example of an Inference question. We're asked to choose the answer that is best supported by the information in the prompt (which is a wordy way of presenting an Inference question). Since an inference can be based on one word, one sentence or a combination of sentences, we need to understand the Facts in the prompt and then find an answer that logically "follows" those Facts.

The Facts:
-A sharp decline in city population leads to a decrease in the city's tax revenues.
-A city's tax revenues pay for CITY SERVICES (such as police protection and maintenance of water lines, etc.)
-A city's police area and length of water lines DO NOT DECREASE.
-Attempting to make up the lost tax revenue by raising tax rates IS NOT FEASIBLE, since higher taxes would cause more residents to leave.

Ideas worth noting:
-This prompt is based on causality: lower population --> lower tax revenues --> reduction in city services. It's likely that the correct answer will be based on this logic.
-The last sentence tells us that raising taxes is NOT an option.

The correct answer A is based on the information in the first 2 sentences. City services are going to decline (due to the decrease in population and tax revenues), BUT the police area and length of water lines DO NOT DECREASE, so something else within the definition of "city services" will have to decline instead.

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by [email protected] » Mon Oct 10, 2016 9:21 am
Hi Experts,

Why is B, D and E correct. The passage does talk about increasing taxes causing people to leave. This is my analysis, please guide if incorrect:

(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. - If A leads to B, it isn't always true that not A will lead to not B. Negated statements are not must be true.



(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 other cities. - No idea why incorrect?

(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 - Again reverse of causality is not always true.
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