1. Which of the following most logically completes the passage below?
In Runagia, The population of retired people receiving government pensions will increase by 5 percent over the next ten years, whereas population of working people will remain relatively constant. Government pensions are paid for entirely by a special pension tax on workers’ incomes. It does not follow that Runagia will have to increase tax rates on working people, however, since________.
(A) the average government pension in Runagia increased significantly over the past ten years
(B) immigration to Runagia has remained constant over the past ten years,
(C) a new tax enforcement policy is expected to lead to a significant decrease in the number of people who do not pay the special pension tax on their income
(D) the average number of years during which retired people collect government pensions in Runagia is expected to rise in the near future
(E) retired people in Runagia who receive government pensions typically pay taxes on any other income they receive aside from their pensions
2. The country of Karlandia imposes a tax of three cents per gallon on sales of gasoline. The revenues from this tax are used to maintain Westland’s roads. The number of miles driven per year in Karlandia has doubled since the tax went into effect fifteen years ago, But although taxes are collected as diligently as ever, gasoline tax revenues have not doubled.
Which of the following, if true, best reconciles the apparent discrepancy?
A Many miles of new roads, all of which will require regular maintenance, are under construction in Westland.
B Overall, vehicles in Karlandia consume less fuel per mile driven than they did 15 years ago.
C Gasoline distributors in Karlandia import more gasoline than they did fifteen years ago.
D The number of vehicles in Karlandia has increased dramatically in the last fifteen years.
E The price of gasoline has not doubled in the last fifteen years.