Question

A gas tax of one cent per gallon would raise one billion dollars per year at current consumption

Answer 1

Keeping in view that; a gas tax of one cent per gallon would raise one billion dollars per year at current consumption rates. Since a tax of fifty cents per gallon would therefore raise fifty billion dollars per year, it seems a perfect way to deal with the federal budget deficit. This tax would have the additional advantage that the resulting drop in the demand for gasoline would be ecologically sound and would keep our country from being too dependent on foreign oil producers.

The statement that most clearly identifies an error in the author's reasoning is the following;

The author makes incompatible assumptions.

Answer 2

Explanation:

GMAT Club Hence the answer is C. A gas tax of one cent per gallon would raise one billion dollars per year at current consumption rates. Since a tax of fifty cents per gallon would therefore raise fifty billion dollars per year, it seems a perfect way to deal with the federal budget deficit.