Gmat+ CR10(#10)

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 447
Joined: Sun Apr 19, 2009 9:08 pm
Location: Kolkata,India
Thanked: 7 times
GMAT Score:670

Gmat+ CR10(#10)

by uptowngirl92 » Fri Jun 05, 2009 7:19 pm
Any tax relief received by the solar industry would not benefit the homeowner who installs a solar-energy system. Even though homeowners would pay a lower price for solar-energy system installations
because of this tax relief, with the government paying the balance, government revenues come from the public.

The argument above is based on which of the
following assumptions?
(A) The tax relief would cause the homeowner to lose, through taxes or reduced government benefits or both, an amount at least equal to
the reduction in the price of that home-owner's solar-energy system installation.

(B) The tax relief that would be received by solar-energy industries would not be offered at the same time as any tax relief for other industries.

(C) Advertisements of the solar-energy industry, by failing to identify the source of government revenues explicitly to the public, mask the
advantage the industry receives from the public.

(D) Homeowners generally believe that they benefit from any tax relief offered to the solar-energy industry.

(E) Tax relief would encourage solar industries to sell solar-energy systems at higher prices.


OA (A)
I did'nt understand the ques.Is there a printing error in the last sentence?Please explain.
Source: — Critical Reasoning |

Legendary Member
Posts: 876
Joined: Thu Apr 10, 2008 8:14 am
Thanked: 13 times

by ketkoag » Sat Jun 06, 2009 12:28 pm
no, there is no printing mistake here. the question is asking the assumption made in this question. argument is that the tax relief is not useful for the people who install the solar device and A states the assumption that shows why it is not useful to install the device..
HTH

User avatar
Master | Next Rank: 500 Posts
Posts: 472
Joined: Sun Mar 29, 2009 6:54 pm
Thanked: 56 times

by ssmiles08 » Sun Jun 07, 2009 10:38 am
I got A too. I don't think there is a printing mistake.

Master | Next Rank: 500 Posts
Posts: 109
Joined: Mon May 04, 2009 8:22 pm
Location: Indy
Thanked: 3 times

Re: Gmat+ CR10(#10)

by amazonviper » Sun Jun 07, 2009 12:56 pm
uptowngirl92 wrote:Any tax relief received by the solar industry would not benefit the homeowner who installs a solar-energy system. Even though homeowners would pay a lower price for solar-energy system installations
because of this tax relief, with the government paying the balance, government revenues come from the public.

The argument above is based on which of the
following assumptions?
(A) The tax relief would cause the homeowner to lose, through taxes or reduced government benefits or both, an amount at least equal to
the reduction in the price of that home-owner's solar-energy system installation.

(B) The tax relief that would be received by solar-energy industries would not be offered at the same time as any tax relief for other industries.

(C) Advertisements of the solar-energy industry, by failing to identify the source of government revenues explicitly to the public, mask the
advantage the industry receives from the public.

(D) Homeowners generally believe that they benefit from any tax relief offered to the solar-energy industry.

(E) Tax relief would encourage solar industries to sell solar-energy systems at higher prices.


OA (A)
I did'nt understand the ques.Is there a printing error in the last sentence?Please explain.
There is no error in the question. If the Gov is paying the rest of the cost of the installation system, they are going to collect more tax from the public in order to meet the numbers. So option A seems the right choice. The rest do not qualify.

Master | Next Rank: 500 Posts
Posts: 138
Joined: Mon Mar 02, 2009 12:02 pm
Thanked: 15 times

by life is a test » Mon Jun 08, 2009 7:28 pm
ketkoag wrote:no, there is no printing mistake here. the question is asking the assumption made in this question. argument is that the tax relief is not useful for the people who install the solar device and A states the assumption that shows why it is not useful to install the device..
HTH
I dont understand why the ans is not E... If there was no tax relief, manufacturers would keep prices at levels x, if there was tax relief they would hike prices to y. If y-x = value of tax relief then how is the consumer any better off??

A and E seem equally plausable to me...am I missing something??

User avatar
Master | Next Rank: 500 Posts
Posts: 154
Joined: Mon Jun 08, 2009 10:02 pm
Thanked: 5 times
Followed by:3 members

by turbo jet » Wed Jun 10, 2009 7:34 am
Correct answer is definitely A

My thought process:

Before looking at the answer choices, I paraphrased the argument.

Conclusion:Any tax relief received by the solar industry would not benefit the homeowner who installs a solar-energy system.

Why?/ Premise/ Evidence to prove the above: Homeowners will pay lower price for the solar heaters. However it will be compensated by the govt who will fund it from its revenues.

I further went ahead and asked, how will the govt fund its revenues: Increase tax/ compromise on other services that it offers.

Answer choice A matched the assumption.

B: Eliminate. Neutral
C: Eliminate: Out of scope
D: Eliminate: Neutral
E: Weakens

Cheers!!
Turbo Jet


:) :) :)
Life is Tom; I am Jerry ;)

Master | Next Rank: 500 Posts
Posts: 100
Joined: Tue Aug 05, 2014 11:14 am

by Brad.C » Sun May 15, 2016 2:01 pm
I'm going with A.