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 local meals tax from 6 to 8.5 percent to cover this year's budget shortfall. While additional funding for Maplewood's schools is essential, the council's proposal may not be the best approach. A large portion of the city's restaurant customers are visitors, who will not benefit from enhancements to the local education system.
Which of the following, if true, would most undermine the effectiveness of the city council's strategy to resolve the Maplewood school budget deficit by increasing the meals tax?
Which of the following, if true, would most undermine the effectiveness of the city council's strategy to resolve the Maplewood school budget deficit by increasing the meals tax?
Answer Choices
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A. The last time the meals tax was increased in Maplewood, restaurants experienced a 20 percent drop in sales in the year following the hike, while establishments in nearby cities saw gains of up to 30 percent.
B
B. The Maplewood Chamber of Commerce, which includes many local restaurant owners, is firmly against the tax increase.
C
C. The city council must hold a public referendum on any tax increase, which could postpone the tax's implementation by several months.
D
D. Local franchise restaurant managers are unable to change menu prices without approval from their corporate offices.
E
E. To ensure adherence to the new tax rate, the city will need to hire extra auditors to check the tax filings of restaurants quarterly.
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A
AvisekJan 29, 2025
Thanks for sharingThank you for sharing!!thanks for sharing
Details
Difficulty
555-605
Type
CR