Free Practice Question
CR · Critical Reasoning
555-605
Weaken
For the fourth consecutive year, the city of Maplewood is facing a deficit in its educational funding. The city council has suggested raising the funds needed by increasing the meals tax imposed on local eateries from 6 to 8.5 percent. While it is crucial to secure additional resources for Maplewood's schools, the city council's current strategy may not be well thought out. A considerable portion of Maplewood's restaurant customers are visitors, who will not benefit from enhancements to the schools in Maplewood.
Which of the following, if true, would most undermine the effectiveness of the city council's proposal to resolve the Maplewood school budget deficit by increasing the local meals tax?
Answer Choices
Correct answer marked belowA. The last time the meals tax was increased in Maplewood, restaurants experienced a 20 percent drop in sales during the first year after the hike, while those in adjacent cities saw growth of up to 30 percent.
Correct
B
B. The Maplewood Chamber of Commerce, which includes most local restaurant owners, is firmly against the tax hike.
C
C. To ensure adherence to the new tax rate, the city will need to hire more inspectors to monitor restaurants' tax submissions.
D
D. According to city regulations, any proposed tax increase must be approved by a public referendum, which could postpone the new tax's implementation by several months.
E
E. Managers of local franchise restaurants are unable to change menu prices without authorization from their corporate offices.
See the full step-by-step explanation
You can see the correct answer above. Sign in for free to unlock the complete worked solution.
Track your performance and improve
Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.
Explanation
Preview
Official Explanation
Official
The most compelling option that casts doubt on the effectiveness of the tax increase is option A. It states that the last time the meals tax was raised, restaurants in Maplewood saw a significant 20 percent decrease in sales, while neighboring areas experienced a 30 percent increase in their revenues. This suggests that raising the meals tax could lead to a…
Read the full explanation
Sign in for free to see the complete step-by-step solution to this question.
Comments
3
Sign in to join the discussion
T
TichaonaApr 28, 2025
thanks for the answer
D
DharunAug 6, 2024
Amazing
M
meronApr 22, 2024
thanks for posting
What this question tests
What it tests
Whether you can identify the option that most undermines an argument's conclusion.
Common trap
Choosing an irrelevant objection or one that attacks the premise rather than the reasoning.
Related GMAT Topic Guides
Details
Difficulty
555-605
Type
CR