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Critical Reasoning (CR) | ­In Region X, all rights to use water from the Dusty River were

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­In Region X, all rights to use water from the Dusty River were allocated to farms at a government auction held more than a century ago. To increase long-term tax revenue generated by the region’s farms, the government now plans to allow holders of water rights to sell those rights freely. The government reasons that this will ensure that more water is allocated to those farms able to use it more profitably.

To assess how successful the government's plan, if implemented, is likely to be in increasing tax revenue, it would be most helpful to know

A. which farms received rights to the most water at the government auction
B. whether farms that cannot most efficiently use water would be adversely affected if the government took away their water rights
C. whether the sale of water rights would be taxable
D. what steps other than changing the allocation of water rights the government could take to increase tax revenues from farms
E. how taxes on the region’s farms vary with those farms’
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Statistics : Posted by Bunuel • on 12 Mar 2024, 00:59 • Replies 0 • Views 70



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