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NEW QUESTION 53

Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings.

Nevertheless, it is clear that Grootland's tax system does not consistently favor borrowing over saving, for if it did, there would be no ______

  • A. taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts
  • B. tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
  • C. tax relief in Grootland for those portions of a taxpayer's income, if any, that are set aside to increase that taxpayer's total savings
  • D. tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
  • E. taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts

Answer: C

Explanation:

Explanation/Reference:

Explanation:

NEW QUESTION 54

Property values in South Orange, New Jersey, have nearly doubled in the last six years. South Orange is located in Essex County, 17 miles from New York City.

Which of the following, if true, best explains the results described in the statement?

  • A. the proximity of South Orange to New York City
  • B. the completion of a direct rail line to New York City
  • C. improved schools and a renovated downtown in South Orange
  • D. the relocation of a major technical corporation to Union, New Jersey, two miles from South Orange
  • E. the addition of 240 housing units in South Orange

Answer: B

Explanation:

Explanation/Reference:

Explanation:

The direct rail line is the most logical explanation for an increase in property values. The proximity to New York City in itself (choice a) would not necessarily increase property values, but the addition of public transportation that provides direct access to the city would make the town a more desirable place to live.

When a place becomes more desirable, real-estate values increase. Choice c, the addition of housing units, is likely an effect of the direct rail line and an increase in the desirability of the location. The improvement of the schools and the renovation of the downtown (choice d) may or may not be related to the increase in property values. It would be logical to conclude that funds for improving the schools and downtown could be gleaned from additional resources from increased property taxes, another effect of increased property values. The relocation of a major corporation to a neighboring town (choice e) could account for the increased desirability of property in South Orange, but the direct access to the city is a more compelling reason. Perhaps a few hundred persons may work in the corporation, but many thousands are likely to want an easy commute to the city.

NEW QUESTION 55

Since a rhinoceros that has no horn is worthless to poachers, the Wildlife Protection Committee plans to protect selected rhinoceroses from being killed by poachers by cutting off the rhinos' horns.

The Wildlife Protection Committee's plan assumes that

  • A. hornless rhinos pose less of a threat to humans, including poachers, than do rhinos that have horns
  • B. rhinos are the only animals poachers kill for their horns
  • C. hornless rhinos can successfully defend their young against nonhuman predators
  • D. poachers do not kill rhinos that are worthless to them
  • E. imposing more stringent penalties on poachers will not decrease the number of rhinos killed by poachers

Answer: D

Explanation:

Explanation/Reference:

Explanation:

NEW QUESTION 56

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