Question 15

Residential development increases property taxes because extending municipal services to new areas is costly.

The passage indicates that the financial burden of providing essential services such as water, electricity, and waste management to newly developed residential areas leads to an increase in property taxes.

A) Because extending municipal services to new areas is costly

This option accurately reflects the reasoning provided in the passage. It explains that the expenses incurred by municipalities to expand services to accommodate new residents are a primary driver for raising property taxes.

B) Because new housing must be taxed at higher rates

This option is incorrect as the passage does not suggest that new housing is subjected to higher tax rates simply due to its newness. Instead, it emphasizes the cost of service extension as the primary factor influencing tax increases.

C) Because it reduces the number of businesses

This statement does not align with the context of the passage. The passage focuses on the costs associated with residential development, rather than a correlation between residential development and the number of businesses present in an area.

D) Because it forces conservation of land

This option is also incorrect. The passage does not mention land conservation as a reason for increased property taxes in the context of residential development. Instead, it highlights the financial implications of service provision.

Conclusion

Option A is definitively correct as it aligns directly with the passage's emphasis on the costs of extending municipal services. All other options fail to address the primary reason for increased property taxes, focusing instead on unrelated factors that do not connect back to the core issue presented in the passage.