Aroca City currently funds its public schools through taxes on property. In place of this system, the city plans to...
GMAT Critical Reasoning : (CR) Questions
Aroca City currently funds its public schools through taxes on property. In place of this system, the city plans to introduce a sales tax of three percent on all retail sales in the city. Critics protest that three percent of current retail sales falls short of the amount raised for schools by property taxes. The critics are correct on this point. Nevertheless, implementing the plan will probably not reduce the money going to Aroca's schools. Several large retailers have selected Aroca City as the site for huge new stores, and these are certain to draw large numbers of shoppers from neighboring municipalities, where sales are taxed at rates of six percent and more. In consequence, retail sales in Aroca City are bound to increase substantially.
In the argument given, the two portions in boldface play which of the following roles?
Understanding the Passage
Text from Passage | Analysis |
"Aroca City currently funds its public schools through taxes on property." |
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(Boldface 1) "In place of this system, the city plans to introduce a sales tax of three percent on all retail sales in the city." |
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"Critics protest that three percent of current retail sales falls short of the amount raised for schools by property taxes." |
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"The critics are correct on this point." |
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"Nevertheless, implementing the plan will probably not reduce the money going to Aroca's schools." |
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(Boldface 2) "Several large retailers have selected Aroca City as the site for huge new stores, and these are certain to draw large numbers of shoppers from neighboring municipalities" |
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"where sales are taxed at rates of six percent and more." |
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"In consequence, retail sales in Aroca City are bound to increase substantially." |
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Overall Structure
The author is defending a proposed policy change against criticism. The flow: Policy proposal → Critics' objection → Author agrees with objection → Nevertheless, author argues policy won't have the feared negative consequence → Evidence for why the outcome will be different than critics expect.
Main Conclusion: Implementing the sales tax plan will probably not reduce money going to Aroca's schools.
Boldface Segments
- Boldface 1: In place of this system, the city plans to introduce a sales tax of three percent on all retail sales in the city.
- Boldface 2: Several large retailers have selected Aroca City as the site for huge new stores, and these are certain to draw large numbers of shoppers from neighboring municipalities
Boldface Understanding
Boldface 1:
- Function: Introduces the policy proposal that is being defended
- Direction: Same direction (supports author's position) - this is the plan the author ultimately defends
Boldface 2:
- Function: Provides the key evidence/reason for why the author believes the policy will work despite critics' concerns
- Direction: Same direction (supports author's position) - this evidence supports the main conclusion
Structural Classification
Boldface 1:
- Structural Role: The policy/proposal being defended; sets up the entire discussion
- Predicted Answer Patterns: "a proposal that the argument defends," "a plan that the argument supports"
Boldface 2:
- Structural Role: Key evidence/premise supporting the main conclusion
- Predicted Answer Patterns: "evidence supporting the argument's conclusion," "a consideration that supports the author's position"
- 'The first presents a plan that the argument seeks to defend against a certain criticism' - ✓ CORRECT - The sales tax plan is what the author ultimately defends, concluding it won't reduce school funding despite critics' concerns
- 'the second gives part of the basis for that criticism' - ✗ WRONG - The second boldface about new retailers actually supports the author's defense, not the critics' position. Critics worry about insufficient revenue, but new retailers provide evidence for increased sales
- 'The first presents a plan that the argument seeks to defend against a certain criticism' - ✓ CORRECT - The author defends the sales tax plan against critics who say it won't raise enough money
- 'the second gives part of the basis for that defense' - ✓ CORRECT - The new retailers provide key evidence for why sales will increase substantially, supporting the author's conclusion that schools won't lose funding
- 'The first presents a plan that the argument criticizes' - ✗ WRONG - The author doesn't criticize the sales tax plan; instead, the author defends it by arguing it won't reduce school funding
- 'the second is a consideration raised by the argument in support of that criticism' - ✗ WRONG - Since the first part is wrong and the author doesn't criticize the plan, this follow-up is also incorrect
- 'The first presents a plan that the argument criticizes' - ✗ WRONG - The author supports the plan, not criticizes it. The conclusion states the plan 'will probably not reduce the money going to Aroca's schools'
- 'the second presents a consideration that has been raised against that criticism' - ✗ WRONG - This part might seem tempting, but since the first part incorrectly identifies the author as criticizing the plan, the whole choice fails
- 'The first presents a plan whose consequences the argument seeks to evaluate' - ✗ WRONG - While the author does evaluate consequences, the primary purpose is to defend the plan against criticism, not neutrally evaluate it
- 'the second is presented by the argument as one likely consequence that is undesirable' - ✗ WRONG - The new retailers are presented as a positive development that will increase sales, not as something undesirable