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Can anyone explain to me why is the answer E? THanks!
It will provide lumber companies with a tax incentive that will ultimately by responsible for a massive decrease in the number of mature forests in the region?
mshermn Wrote:This question asks us to find the answer choice that must be true given the information in the stimulus.
Here's what we know from the stimulus.
1. the new tax law gives lumber companies a tax incentive to replant cleared land.
2. one company found a way to collect the tax incentive without actually producing a net increase in forested land (they cleared one tract to pay for planting another).
This leads perfectly to answer choice (D). The tax law provided the company with an incentive to act in a way that is contrary to the purpose of the law, while taking advantage of the tax incentives. Remember the purpose of the law was to encourage reforestation, and the lumber company acted in a way that did not lead to a net increase in forested land. In fact, for the short term (while we wait for the reforested land to grow), there's a net decrease in forested land.
(A) is too strong to be established by the information in the passage. We only know about the actions of one lumber company. This claim would require a complete assessment of most (if not all) lumber companies.
(B) is too strong to be established by the information. For the one company discussed in the stimulus the amount of forested land has remained the same, but we are not given information about other lumber companies.
(C) seems to follow from the information, but is a prediction about the future that cannot be proven.
(E) is another extrapolation. This answer choice seems to follow from the information, but again is a statement regarding the lumber industry as a whole, whereas the stimulus only provides us information about the actions of one lumber company.
Does that help clear it up?
mattsherman Wrote:(B) is too strong to be established by the information. For the one company discussed in the stimulus the amount of forested land has remained the same, but we are not given information about other lumber companies.