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 funds needed by increasing the meals tax imposed on local eateries from 6 to 8.5 percent. While it is crucial to secure additional resources for Maplewood's schools, the city council's current strategy may not be well thought out. A considerable portion of Maplewood's restaurant customers are visitors, who will not benefit from enhancements to the schools in Maplewood.
Which of the following, if true, would most undermine the effectiveness of the city council's proposal to resolve the Maplewood school budget deficit by increasing the local meals tax?
Which of the following, if true, would most undermine the effectiveness of the city council's proposal to resolve the Maplewood school budget deficit by increasing the local 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 during the first year after the hike, while those in adjacent cities saw growth of up to 30 percent.
B
B. The Maplewood Chamber of Commerce, which includes most local restaurant owners, is firmly against the tax hike.
C
C. To ensure adherence to the new tax rate, the city will need to hire more inspectors to monitor restaurants' tax submissions.
D
D. According to city regulations, any proposed tax increase must be approved by a public referendum, which could postpone the new tax's implementation by several months.
E
E. Managers of local franchise restaurants are unable to change menu prices without authorization from their corporate offices.
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T
TichaonaApr 28, 2025
thanks for the answer
Details
Difficulty
555-605
Type
CR