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Directions: The question below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage.
Ten years ago, the total share of federal, state, and local taxes was 23 percent of the nation’s Gross National Product. Now, that share has decreased to 21 percent.
Q. Which one of the following can be properly inferred from the facts given above?
  • a)
    The total amount of federal, state, and local taxes paid now is less than the amount paid ten years ago
  • b)
    On average, people now have a better standard of living than they did ten years ago.
  • c)
    The average taxpayer keeps a greater percentage of income for his own use than he did ten years ago.
  • d)
    Federal, state, and local governments have reduced the level of services they offer to constituents.
  • e)
    Inefficiency and fraud have been reduced in government services.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Directions: The question below are based on the reasoning contained i...
If the various levels of government collect a smaller share of the GNP through taxes, then the average taxpayer keeps a larger share. The answer is (C).
Be careful of choice (A): it commits an error by failing to distinguish between percentage and amount. While the percentage share of taxes has decreased, the overall amount of tax revenue could have increased if the GNP is larger than it was ten years ago.
The other choices can not be logically inferred from the passage. Each choice offers a possible cause or effect of the tax reduction, but none of these must occur.
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Directions: The question below are based on the reasoning contained i...
Understanding the Inference
The passage states that the total share of federal, state, and local taxes has decreased from 23% to 21% of the nation’s Gross National Product (GNP) over ten years. This data leads to several implications regarding taxpayers and governmental financial dynamics.
Analyzing the Options
- Option A: "The total amount of federal, state, and local taxes paid now is less than the amount paid ten years ago."
- This cannot be definitively inferred because the decrease in percentage does not necessarily indicate a decrease in total tax revenue; it depends on the overall GNP.
- Option B: "On average, people now have a better standard of living than they did ten years ago."
- This statement is too broad and cannot be inferred solely from tax rates. Other factors contribute to standard of living.
- Option C: "The average taxpayer keeps a greater percentage of income for his own use than he did ten years ago."
- This is a valid inference. As the tax share of GNP decreases, it suggests that taxpayers retain a larger portion of their income, since a smaller percentage is being taken as tax.
- Option D: "Federal, state, and local governments have reduced the level of services they offer to constituents."
- This is not necessarily true, as the passage does not provide information about government services.
- Option E: "Inefficiency and fraud have been reduced in government services."
- There is no evidence in the passage to support this claim.
Conclusion
Therefore, the best answer is Option C. The decrease in the tax share indicates that taxpayers now keep a greater percentage of their income, leading to a larger personal share of earnings compared to ten years ago.
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Directions: The question below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage.Ten years ago, the total share of federal, state, and local taxes was 23 percent of the nation’s Gross National Product. Now, that share has decreased to 21 percent.Q. Which one of the following can be properly inferred from the facts given above?a)The total amount of federal, state, and local taxes paid now is less than the amount paid ten years agob)On average, people now have a better standard of living than they did ten years ago.c)The average taxpayer keeps a greater percentage of income for his own use than he did ten years ago.d)Federal, state, and local governments have reduced the level of services they offer to constituents.e)Inefficiency and fraud have been reduced in government services.Correct answer is option 'C'. Can you explain this answer?
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Directions: The question below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage.Ten years ago, the total share of federal, state, and local taxes was 23 percent of the nation’s Gross National Product. Now, that share has decreased to 21 percent.Q. Which one of the following can be properly inferred from the facts given above?a)The total amount of federal, state, and local taxes paid now is less than the amount paid ten years agob)On average, people now have a better standard of living than they did ten years ago.c)The average taxpayer keeps a greater percentage of income for his own use than he did ten years ago.d)Federal, state, and local governments have reduced the level of services they offer to constituents.e)Inefficiency and fraud have been reduced in government services.Correct answer is option 'C'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: The question below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage.Ten years ago, the total share of federal, state, and local taxes was 23 percent of the nation’s Gross National Product. Now, that share has decreased to 21 percent.Q. Which one of the following can be properly inferred from the facts given above?a)The total amount of federal, state, and local taxes paid now is less than the amount paid ten years agob)On average, people now have a better standard of living than they did ten years ago.c)The average taxpayer keeps a greater percentage of income for his own use than he did ten years ago.d)Federal, state, and local governments have reduced the level of services they offer to constituents.e)Inefficiency and fraud have been reduced in government services.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: The question below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage.Ten years ago, the total share of federal, state, and local taxes was 23 percent of the nation’s Gross National Product. Now, that share has decreased to 21 percent.Q. Which one of the following can be properly inferred from the facts given above?a)The total amount of federal, state, and local taxes paid now is less than the amount paid ten years agob)On average, people now have a better standard of living than they did ten years ago.c)The average taxpayer keeps a greater percentage of income for his own use than he did ten years ago.d)Federal, state, and local governments have reduced the level of services they offer to constituents.e)Inefficiency and fraud have been reduced in government services.Correct answer is option 'C'. Can you explain this answer?.
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