CR 1000 Test 2 Q5

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CR 1000 Test 2 Q5

by its_me07 » Tue Feb 26, 2008 6:59 am
Can anybody explain ths plz?
OA is B given in the document.

The city’s public transportation system should be removed from the jurisdiction of the municipal government, which finds it politically impossible either to raise fares or to institute cost-saving reductions in service. If public transportation were handled by a private firm, profits would be vigorously pursued, thereby eliminating the necessity for covering operating costs with government funds.
The statements above best support the conclusion that
(A) the private firms that would handle public transportation would have experience in the transportation industry
(B) political considerations would not prevent private firms from ensuring that revenues cover operating costs
(C) private firms would receive government funding if it were needed to cover operating costs
(D) the public would approve the cost-cutting actions taken by the private firm
(E) the municipal government would not be resigned to accumulating merely enough income to cover costs

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by sankruth » Tue Feb 26, 2008 9:14 am
The argument is that private companies rather than municipal government must be in charge of city transportation.

1. Due to political reasons MG cannot raise fares or undertake cost-cutting measures. It is also implied that MG cannot cover costs and uses public funds to cover it

2. Contrast is offered, where if private companies ran the transportation , they will be keen on making profits and therefore will not use public funds to cover costs.

A - Wrong. There no evidence of any pre-requisites for running the city's transportation.

B - Correct. The argument offers a reason (political consideration) for why MG are not successful in making profits and contrasts it with private companies. So, it is safe to conclude that political considerations will not deter private companies from making good revenues.

C - Wrong. The argument does not say what will happen if the private companis do not make profit.

D - Wrong. There is no mention of the public.

E - Wrong. It is speculating on how much income MG will generate. The argument is about why private companies are better than MG to run transportation.

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by its_me07 » Tue Feb 26, 2008 10:13 am
Thanks sankruth.

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by agautam » Wed Dec 28, 2011 1:08 pm
The reason why I did not choose B though i agree that it is the best option of the lot because I thought that B is the assumption rather than the premise and hence can not be conclusion. As the conclusion have to be based on the premise and not on the basis of the assumption.
and again there is no clear connection betwen persuing the profits and the not coming under political pressure

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by nileshdalvi » Wed Dec 28, 2011 10:15 pm
Completely agree with agautam. Does not seem to be a good question to practice.