CR Question - 2

[neha.patni]

In 1992, 5 percent of every dollar paid in tax went to support the unemployed citizens. In 1998, 8 percent of every dollar paid in tax went to such funds, although that unemployment rate has decreased in 1998 than in 1992.
Each of the following, if true, could explain the simultaneous increase in percent of every dollar paid in tax to support the unemployed citizens and decrease in the number of unemployment rate EXCEPT:
A. On average, each unemployed citizen received more money in 1998 than 1992.
B. On average, people paid less tax in 1998 �than in 1992.
C. The individuals had paid more tax than did enterprises during this period.
D. Income before tax has significantly decreased since 1992.
E. The number of tax evaders rose sharply between 1992 and �1998.

[ajith]

In 1992, 5 percent of every dollar paid in tax went to support the unemployed citizens. In 1998, 8 percent of every dollar paid in tax went to such funds, although that unemployment rate has decreased in 1998 than in 1992.
Each of the following, if true, could explain the simultaneous increase in percent of every dollar paid in tax to support the unemployed citizens and decrease in the number of unemployment rate EXCEPT:
A. On average, each unemployed citizen received more money in 1998 than 1992.
B. On average, people paid less tax in 1998 �than in 1992.
C. The individuals had paid more tax than did enterprises during this period.
D. Income before tax has significantly decreased since 1992.
E. The number of tax evaders rose sharply between 1992 and �1998.

We need to find the invalid Assumption

Everything except C makes sense, C on the otherhand is totally irrelevant

[delhiboy1979]

What is the OA and source please. Thank you.

[gmatmachoman]

In 1992, 5 percent of every dollar paid in tax went to support the unemployed citizens. In 1998, 8 percent of every dollar paid in tax went to such funds, although that unemployment rate has decreased in 1998 than in 1992.
Each of the following, if true, could explain the simultaneous increase in percent of every dollar paid in tax to support the unemployed citizens and decrease in the number of unemployment rate EXCEPT:
A. On average, each unemployed citizen received more money in 1998 than 1992.
B. On average, people paid less tax in 1998 �than in 1992.
C. The individuals had paid more tax than did enterprises during this period.
D. Income before tax has significantly decreased since 1992.
E. The number of tax evaders rose sharply between 1992 and �1998.

We need to find the invalid Assumption

Everything except C makes sense, C on the otherhand is totally irrelevant

One more for C

[neha.patni]

@ ajith

thanks... but i m still not able to understand the question...can u give a detailed explanation

[ajith]

A. If the no of people who received the money is constant, one explanation could be people got more money per person - Valid

B. If the tax amount was less 8% of the new amount can be equal to 5% of the old tax amount - A very valid explanation

C. Individual/Enterprise distinction is never mentioned in the passage and could not be used as a valid explanation of what is going on - Irrelevant

D. If Income before tax has significantly decreased since 1992. the total tax collected will be less and it will be much like the situation in option B - again supports the argument

E The number of tax evaders rose sharply between 1992 and 1998, tax collected may decrease and it could lead to a situation similar to option B - Supports the argument

Hence C

[bpgen]

I would go for E:

Here is the explanation:
Each of the following, if true, could explain the simultaneous increase in percent of every dollar paid in tax to support the unemployed citizens and decrease in the number of unemployment rate EXCEPT:
i.e we have to find out which statement does not help to increase tax and eventually could not support Unemployed...

A. On average, each unemployed citizen received more money in 1998 than 1992. [Unemployed got benefited. --Eliminated!]
B. On average, people paid less tax in 1998 �than in 1992. [No problem, population could be increased
and hence paying less tax still could increase tax. --Eliminated!]
C. The individuals had paid more tax than did enterprises during this period. [great, that means tax increased! --Eliminated! ]
D. Income before tax has significantly decreased since 1992.[No problem,that means you paid more tax but could save little --Eliminated! ]
E. The number of tax evaders rose sharply between 1992 and �1998.[Bingo!!! , If people do not pay tax, it would seriously decrease tax amount and eventually could not help unemployed! --Selected! ]

Hope this help.

[Phirozz]

In 1992, 5 percent of every dollar paid in tax went to support the unemployed citizens. In 1998, 8 percent of every dollar paid in tax went to such funds, although that unemployment rate has decreased in 1998 than in 1992.
Each of the following, if true, could explain the simultaneous increase in percent of every dollar paid in tax to support the unemployed citizens and decrease in the number of unemployment rate EXCEPT:
A. On average, each unemployed citizen received more money in 1998 than 1992.
B. On average, people paid less tax in 1998 �than in 1992.
C. The individuals had paid more tax than did enterprises during this period.
D. Income before tax has significantly decreased since 1992.
E. The number of tax evaders rose sharply between 1992 and �1998.

IMO C. quite easy

[bpgen]

Hello neha.patni , what's the OA, anyway..?

[joseph32]

I am pretty sure that the right Answer is C