It is currently 15 Jun 2019, 23:12
My Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

The people of Prohibitionland are considering banning the se

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Founder
Founder
User avatar
Joined: 18 Apr 2015
Posts: 6866
Followers: 114

Kudos [?]: 1326 [0], given: 6284

CAT Tests
The people of Prohibitionland are considering banning the se [#permalink] New post 13 Jul 2018, 11:06
Expert's post
00:00

Question Stats:

46% (01:31) correct 53% (02:32) wrong based on 26 sessions
The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits. However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50%. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Which of the following, if true, supports the restaurant proprietors’ economic stance against the ban?

(A) In the provinces that restricted alcoholic beverages, there was a short-term negative impact on restaurant visitation in the beginning of last year.
(B) The sales tax in Prohibitionland is lower on food and beverages than it is on other consumer goods, such as clothing.
(C) The consumption of alcoholic beverages in Prohibitionland has been on a gradual decline the last 20 years.
(D) The restrictions on alcoholic beverages enacted last year allowed for the service of alcohol beginning around dinner time each evening.
(E) Overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions on alcoholic beverages than in the rest of Prohibitionland last year.
[Reveal] Spoiler: OA

_________________

Get the 2 FREE GREPrepclub Tests

Intern
Intern
Joined: 02 Oct 2018
Posts: 31
Followers: 0

Kudos [?]: 2 [0], given: 0

Re: The people of Prohibitionland are considering banning the se [#permalink] New post 12 Nov 2018, 07:27
Can you please explain?
Founder
Founder
User avatar
Joined: 18 Apr 2015
Posts: 6866
Followers: 114

Kudos [?]: 1326 [0], given: 6284

CAT Tests
Re: The people of Prohibitionland are considering banning the se [#permalink] New post 16 Nov 2018, 01:28
Expert's post
Couple things to notice reading the passage:

1. People propose a “ban” but use "restrictions" in their example. Do the terms mean the same thing?
2. Even with restrictions bar’s revenues increased!

The only question in my mind by now is does “restrictions”=”full restrictions” i.e. ban?

Because if restrictions are “full” (i.e. no alcohol is sold) but revenues increased than Bar Owners have nothing to worry about should ok the ban and expect revenue growth. However, if restrictions are *partial* (say only 2 hours/day alcohol sale is permitted) then the evidence People use to support their claim (2 hrs/day alcohol sales but revenues show increase) will definitely show that alcohol sales make $$$ and by implementing the ban this dollar stream will be gone!

Now, D tells us that alcohol was sold couple hours per day i.e. the restrictions do not equal to ban!
_________________

Get the 2 FREE GREPrepclub Tests

Intern
Intern
Joined: 04 Dec 2018
Posts: 30
Followers: 0

Kudos [?]: 8 [0], given: 4

Re: The people of Prohibitionland are considering banning the se [#permalink] New post 19 Dec 2018, 12:22
can you explain why it was not D?
Founder
Founder
User avatar
Joined: 18 Apr 2015
Posts: 6866
Followers: 114

Kudos [?]: 1326 [0], given: 6284

CAT Tests
Re: The people of Prohibitionland are considering banning the se [#permalink] New post 19 Dec 2018, 16:56
Expert's post
D is the OA.

Regards
_________________

Get the 2 FREE GREPrepclub Tests

Re: The people of Prohibitionland are considering banning the se   [#permalink] 19 Dec 2018, 16:56
Display posts from previous: Sort by

The people of Prohibitionland are considering banning the se

  Question banks Downloads My Bookmarks Reviews Important topics  


GRE Prep Club Forum Home| About| Terms and Conditions and Privacy Policy| GRE Prep Club Rules| Contact

Powered by phpBB © phpBB Group

Kindly note that the GRE® test is a registered trademark of the Educational Testing Service®, and this site has neither been reviewed nor endorsed by ETS®.