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hitmis
- Master | Next Rank: 500 Posts
- Posts: 104
- Joined: Thu Mar 25, 2010 3:32 am
- Location: Mumbai
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- GMAT Score:680
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Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city's finances on the whole will not be negatively affected by higher gasoline prices.
If all of the statements above are true, which of the following is most likely to be damaged by the city council's plan?
A local chain of service stations, which will see fewer customers during the daily commute.
Members of the bus drivers' union, who will be forced to add more routes and work longer hours.
The city council's budget, which will be unbalanced after receiving no revenue from transit fares for three months.
Commuters who already use public transportation daily and who will face crowded conditions and travel delays.
Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.
I picked a which was incorrect. I am not convinced why it isn't. I was torn between picking a and c but since the concern in the stimulus was about the economy I picked a
Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city's finances on the whole will not be negatively affected by higher gasoline prices.
If all of the statements above are true, which of the following is most likely to be damaged by the city council's plan?
A local chain of service stations, which will see fewer customers during the daily commute.
Members of the bus drivers' union, who will be forced to add more routes and work longer hours.
The city council's budget, which will be unbalanced after receiving no revenue from transit fares for three months.
Commuters who already use public transportation daily and who will face crowded conditions and travel delays.
Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.
I picked a which was incorrect. I am not convinced why it isn't. I was torn between picking a and c but since the concern in the stimulus was about the economy I picked a
