Question

According to the passage, which choice best describes the current financial situation in many major American cities?

• A. Expected tax increases due to demand for public works
• B. Economic hardship due to promises made in past years
• C. Greater overall prosperity due to an increased inner-city tax base
• D. Insufficient revenues due to a decrease in manufacturing

Answer 1

The correct option is B Economic hardship due to promises made in past years

According to the passage, major cities in America are facing economic problems due to public pension promises they made during their prosperous years. Chicago didn't produce enough revenue during the recession to support such schemes to which the public got used to. These statements prove C to be the correct answer.

The passage does not mention anything about tax. So, A and C are rejected.

It also doesn't say anything about decreased revenues. We cannot accept D.