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

Redeem

Tax

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Source: — Critical Reasoning |
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Tue Feb 12, 2013 7:44 am
Soumita Ghosh wrote:Image

OA D


I am confused with D and E?? but why D is better than E??
The correct inference is WHAT MUST BE TRUE.
According to the passage, the government has been SPENDING MONEY on the transportation system.
At the same time, because of the 0% tax rate, the government has had NO REVENUE.
The result must be a budget SHORTFALL.
To BALANCE THE BUDGET, answer choice D must be true:
The government will have to find a new source of revenue or raise taxes.

The correct answer is D.

Answer choice E: The government will use its reserves to finance operations.
It does not have to be true that the government will USE ITS RESERVES.
The government could find ANOTHER WAY to finance operations.
Since E does not have to be true, eliminate E.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
User avatar
Legendary Member
Posts: 934
Joined: Tue Nov 09, 2010 5:16 am
Location: AAMCHI MUMBAI LOCAL
Thanked: 63 times
Followed by:14 members

by [email protected] » Thu Mar 21, 2013 2:37 am
Well thanks GMATguru for this explanation.

But guyzzz, one thing that can be deduced or concluded from this inference question is the following:

The concept of causal reasoning or conditional reasoning cannot apply to the inference question;

Eg: X causes Y. is the premise given, and we have to infer something:

Then we cannot infer that if not x then not y.

The same goes for the conditional sentences.

Eg: If X then Y.

Can the following be inferred that is:

If not X then not Y or If not Y then not X can be inferred.

This is very important.

Could anyone really help in here...
IT IS TIME TO BEAT THE GMAT

LEARNING, APPLICATION AND TIMING IS THE FACT OF GMAT AND LIFE AS WELL... KEEP PLAYING!!!

Whenever you feel that my post really helped you to learn something new, please press on the 'THANK' button.
Top
Post new topic Post Reply
• Page 1 of 1