GMAT Critical Reasoning Discussions

One state adds a 7 percent sales tax to the price of most products purchased within its jurisdiction. This tax, therefore, if viewed as tax on income, has the reverse effect of the federal income tax: the lower the income, the higher the annual percentage rate at which the income is taxed.
The conclusion above would be properly drawn if which of the following were assumed as a premise?
(A) The amount of money citizens spend on products subject to the state tax tends to be equal across income levels.
(B) The federal income tax favors citizens with high incomes, whereas the state sales tax favors citizens with low incomes.
(C) Citizens with low annual incomes can afford to pay a relatively higher percentage of their incomes in state sales tax, since their federal income tax is relatively low.
(D) The lower a states sales tax, the more it will tend to redistribute income from the more affluent citizens to the rest of society.ďźˆA
(E) Citizens who fail to earn federally taxable income are also exempt from the state sales tax.
any explanantion ????


I think the answer should be Option (B) ..

Option (A) is not stated anywhere neither can it be derived
Option (D) and (E) are again out of the scope
Option (C) is incorrect because people with lower annual incomes have a higher federal tax net so as to compensate the tax collected .

So I go with Option (B) ...
One state adds a 7 percent sales tax to the price of most products purchased within its jurisdiction. This tax, therefore, if viewed as tax on income, has the reverse effect of the federal income tax: the lower the income, the higher the annual percentage rate at which the income is taxed.
The conclusion above would be properly drawn if which of the following were assumed as a premise?
(A) The amount of money citizens spend on products subject to the state tax tends to be equal across income levels.
(B) The federal income tax favors citizens with high incomes, whereas the state sales tax favors citizens with low incomes.
(C) Citizens with low annual incomes can afford to pay a relatively higher percentage of their incomes in state sales tax, since their federal income tax is relatively low.
(D) The lower a states sales tax, the more it will tend to redistribute income from the more affluent citizens to the rest of society.ďźˆA
(E) Citizens who fail to earn federally taxable income are also exempt from the state sales tax.
any explanantion ????

I take it this way :

-> A sales tax on each purchase for all puts same tax on the money spent by all present under low and high income groups.
-> Federal income tax is lower for low income group.
-> But if the amount of money that people spend tends to be equal across income levels, the low income group is going to be affected more. Even a 7% tax which will be applicable to both low and high income groups will be seen as high tax by low income group.

Correct me if I am wrong at any point.

Answer for me : A

Sushant,
It'll be great if you don't post the answer along with the question you post.

Hi,

I am Amit an aspirant for GMAT.At the initial phase of my prep.

My pick is B for the CR.

Now tell me is that the right answer ?

My answer is A... This was a good one.. I had to read it thrice to understand and answer..

I think the answer should be Option (B) ..

Option (A) is not stated anywhere neither can it be derived
Option (D) and (E) are again out of the scope
Option (C) is incorrect because people with lower annual incomes have a higher federal tax net so as to compensate the tax collected .

So I go with Option (B) ...

Hello Sir,

I dont quite agree with the reasons through which we can negate and go with ..

See we have to arrive at a premise from a conclusion which says that Sales tax is the reverse effect of fed tax...

In my opinion A is the most apt premise rather than B which seems more a judgement rather than an unbiased premise..

Ofcourse we can negate out C,D & E..but my point is how


Awaiting your reply

Thanks
Someone please help me with this question..

A researcher discovered that people who have low levels of immune system activity tend to score much lower on tests of mental health than do people with normal or high immune system activityThe researcher concluded from this experiment that the immune system protects against mental illness as well as against physical disease
The researcher's conclusion depends on which of the following assumptions?
(A) High immunesystem activity protects against mental illness better than normal immune, system activity does
(B) Mental illness is similar to physical disease in its effects on body systems.
(C) People with high immune-system activity cannot develop mental illness
(D) Mental illness does not cause people's immune-system activity to decrease.
(E) Psychological treatment of mental illness is not as effective as is medical treatment.


As per my understanding the ans should be 'B'...................... but I didn't follow the explaination given for the ans as 'D'
Can any please elucidate me in some other way how we can deduce ans as choice D

A researcher discovered that people who have low levels of immune system activity tend to score much lower on tests of mental health than do people with normal or high immune system activityThe researcher concluded from this experiment that the immune system protects against mental illness as well as against physical disease
The researcher's conclusion depends on which of the following assumptions?
(A) High immunesystem activity protects against mental illness better than normal immune, system activity does
(B) Mental illness is similar to physical disease in its effects on body systems.
(C) People with high immune-system activity cannot develop mental illness
(D) Mental illness does not cause people's immune-system activity to decrease.
(E) Psychological treatment of mental illness is not as effective as is medical treatment.
---------

I will go for B... other options are not relevant assumptions which will lead to the conclusion drawn by the researcher..

# 305

The answer is B.

Choice D is impossible to assume because what we know is lower inmune sys act produces low score and normal or high sys act produces high score.

It can not be concluded that mental illness does not cause peoples immune sys activity to decrease, because this does not follow from the statement. In any case I would say DOES cause... but again this conclussion is not followed by the argument. It is out of scope.

Dear puys...

can we have some more questions plz

regards

Jakhar

The price the government pays for standard weapons purchased from military contractors is determined by a pricing method called historical costing. Historical costing allows contractors to protect their profits by adding a percentage increase, based on the current rate of inflation, to the previous years contractual price.
Which of the following statements, if true, is the best basis for a criticism of historical costing as an economically sound pricing method for military contracts?
(A) The government might continue to pay for past inefficient use of funds.
(B) The rate of inflation has varied considerably over the past twenty years.
(C) The contractual price will be greatly affected by the cost of materials used for the products.
(D) Many taxpayers question the amount of money the government spends on military contracts.
(E) The pricing method based on historical costing might not encourage the development of innovative weapons.


any explanation

" Found in caves with the bones of australopithecines, which are thought by some to be ancient ancestors of the human species, were great collections of animal bones. From the frequencies of types of bones, it can be seen that many bones represented only parts of animals that must have died elsewhere. The australopithecines thus must have been mighty hunters, to have brought home so much meat.

Which of the following, if true, most seriously weakens the conclusion drawn above?

a. The australopithecines sometimes moved from cave to cave for shelter and did not remain in one cave for a lifetime.
b. The australopithecine bones found in the caves were those of adult males, adult females, and juveniles.
c. Evidence of the use of fire was absent from the caves in which the collections of bones were found.
d. Marks on the bones, including the bones of the australopithecines, are consistent with teeth marks of large catlike animals of the period.
e. The bones in the cave did not include bones of an elephantlike animal that existed in the area at the time of the australopithecines.

hi there/..

my take n the question would be either A or D... but i think (i might be wrong) the answer is D. ..

BCD...i felt irrelevant hence negated these three.
Answer is not A ...becoz even if the australopithecines kept moving from one cave to another they still can hunt such animals and bring the meat back...
but C suggests that the bones of
australopithecines and other animals were brought to cave by cat like animals and hence it negates the conclusion...

what is the correct answer...

regards

Jakhar

" Found in caves with the bones of australopithecines, which are thought by some to be ancient ancestors of the human species, were great collections of animal bones. From the frequencies of types of bones, it can be seen that many bones represented only parts of animals that must have died elsewhere. The australopithecines thus must have been mighty hunters, to have brought home so much meat.
Which of the following, if true, most seriously weakens the conclusion drawn above?
a. The australopithecines sometimes moved from cave to cave for shelter and did not remain in one cave for a lifetime.
b. The australopithecine bones found in the caves were those of adult males, adult females, and juveniles.
c. Evidence of the use of fire was absent from the caves in which the collections of bones were found.
d. Marks on the bones, including the bones of the australopithecines, are consistent with teeth marks of large catlike animals of the period.
e. The bones in the cave did not include bones of an elephantlike animal that existed in the area at the time of the australopithecines.

hi my take on the question is...

I think the correct answer is A.
B sounds plausible but the phrase " rate of inflation has varied in the past twenty years '' is vague because variation could be an increase or a decrease... so cannot provide us the exact pt.
C- out of scope , bcoz the pricing is proportion to the inflation hence no other price factor could be considered
D- though it offers a very mild criticism but still i'll go with A
E-Innovation?? what's the pt in discussing innovation over here...

So i zeroed in on to A..
hope could explain you the answer....

Regards

Jakhar




The price the government pays for standard weapons purchased from military contractors is determined by a pricing method called historical costing. Historical costing allows contractors to protect their profits by adding a percentage increase, based on the current rate of inflation, to the previous years contractual price.
Which of the following statements, if true, is the best basis for a criticism of historical costing as an economically sound pricing method for military contracts?
(A) The government might continue to pay for past inefficient use of funds.
(B) The rate of inflation has varied considerably over the past twenty years.
(C) The contractual price will be greatly affected by the cost of materials used for the products.
(D) Many taxpayers question the amount of money the government spends on military contracts.
(E) The pricing method based on historical costing might not encourage the development of innovative weapons.


any explanation

Hi there,
I have completed the CR from OG-11.............. please suggest me from where I should start next for CR ?

Regards

According to Mohinder you should start now with Kaplan 800.

The number of people diagnosed as having a certain intestinal disease has dropped significantly in a rural county this year, as compared to last year. Health officials attribute this decrease entirely to improved sanitary conditions at water-treatment plants, which made for cleaner water this year and thus reduced the incidence of the disease.


Which of the following, if true, would most seriously weaken the health officials' explanation for the lower incidence of the disease?


A. Many new water-treatment plants have been built in the last five years in the rural county.
B. Bottled spring water has not been consumed in significantly different quantities by people diagnosed as having the intestinal disease, as compared to people who did not contract the disease.
C. Because of a new diagnostic technique, many people who until this year would have been diagnosed as having the intestinal disease are now correctly diagnosed as suffering from intestinal ulcers.
D. Because of medical advances this year, far fewer people who contract the intestinal disease will develop severe cases of the disease.
E. The water in the rural county was brought up to the sanitary standards of the water in neighboring counties ten years ago.

Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.

Neither a rising standard of living nor balanced trade, by itself, establishes a countrys ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a countrys standard of living.

If the facts stated in the passage above are true, a proper test of a countrys ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.


good one. I will go with A

The two main variables we are discussing here are Standard of Living(S.O.L) and a Balanced Trade(B.T)

Given that (S.O.L) = K/ B.T and vice versa.

For a country to be competitive S.O.L should only rise and B.T should be maintained. only A says so.

Neo
The number of people diagnosed as having a certain intestinal disease has dropped significantly in a rural county this year, as compared to last year. Health officials attribute this decrease entirely to improved sanitary conditions at water-treatment plants, which made for cleaner water this year and thus reduced the incidence of the disease.


Which of the following, if true, would most seriously weaken the health officials explanation for the lower incidence of the disease?


A. Many new water-treatment plants have been built in the last five years in the rural county.This no where weakens the argument
B. Bottled spring water has not been consumed in significantly different quantities by people diagnosed as having the intestinal disease, as compared to people who did not contract the disease. This infact strengthens the argument
C. Because of a new diagnostic technique, many people who until this year would have been diagnosed as having the intestinal disease are now correctly diagnosed as suffering from intestinal ulcers. It was not a intestinal disease ,which they attributed to poor sanitary conditions.
D. Because of medical advances this year, far fewer people who contract the intestinal disease will develop severe cases of the disease. Doesn't weaken. only intensity of disease increases.
E. The water in the rural county was brought up to the sanitary standards of the water in neighboring counties ten years ago. not relevant


Plz post the correct answers and new qns too

Neo
good one. I will go with A

The two main variables we are discussing here are Standard of Living(S.O.L) and a Balanced Trade(B.T)

Given that (S.O.L) = K/ B.T and vice versa.

For a country to be competitive S.O.L should only rise and B.T should be maintained. only A says so.

Neo

Your answer is correct :-)

So does "balance its trade" or "Balanced Trade" signify "decreasing trade deficits" ?

Thats the confusion I had.