GMAT Critical Reasoning
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.
Correct Answer: B