GMAT Critical Reasoning

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Source: Manhattan

Level: 3

Finance Minister: Last year was disastrous for our manufacturing sector, which has traditionally contributed about 75% of our national budget. It is therefore encouraging that there is evidence that the IT sector is growing stronger. Taxes from the IT sector accounted for 15% of our national budget, up from 8% last year.

On the basis of the statements above, what best supports the above conclusion?

  • A The increase in taxes from the IT sector could have merely been the result of new laws imposed on the IT sector.
  • B The profits of the IT sector remained at a steady level despite the fact that it paid more taxes to the national government.
  • C The rise in the percentage of taxes that the IT sector contributed to the national government was insignificant in actual dollar terms.
  • D It is difficult to determine whether the jump from 8-15% tax contribution by the IT sector will be ongoing.
  • E The information given above does not fairly compare the contribution of taxes paid by different industries to the national government.

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