Solutions

Get detailed explanations to advanced GMAT questions.



Question

Aroca County’s public schools are supported primarily by taxes on the property. The county plans to eliminate the property tax and support schools with a new three percent sales tax on all retail items sold in the county. Three percent of current retail sales is less than the amount collected through property taxes, but the implementation of the plan would not necessarily reduce the amount of money going to Aroca County public schools, because


 

Option A:

many Aroca County residents have already left the county because of its high property taxes

Option B:

a shopping mall likely to draw shoppers from neighboring counties is about to open in Aroca County

Option C:

at least some Aroca County parents are likely to use the money they will save on property taxes to send their children to private schools not funded by the county

Option D:

a significant proportion of parents of Aroca County public school students do not own their homes and consequently do not pay property taxes

Option E:

retailers in Aroca County are not likely to absorb the sales tax by reducing the pretax price of their goods

Difficulty Level

Medium

Solution

Option B is the right answer.


Option Analysis

Question type: Inference based 

 Summary of the argument: Since this is an inference question it is best to read the facts given and find an answer that is 100% true based on the facts.  

 

A) This tells that the new retail sales tax proposed is not going to help the schools because a lot of people have already left Aroca.  

B) Correct Answer

C) We are not worried about what the parents of the children will do.  

D) Doesn’t contribute to the logic of the argument.  

E) This doesn’t tell why the money going to Aroca’s schools will reduce.  


Pin It on Pinterest