GMAT Verbal Reasoning Practice Test 1

The direct rail line is the most logical explanation for an increase in property values. The proximity to New York City in itself (choice A) would not necessarily increase property values, but the addition of public transportation that provides direct access to the city would make the town a more desirable place to live. When a place becomes more desirable, real-estate values increase. Choice C, the addition of housing units, is likely an effect of the direct rail line and an increase in the desirability of the location. The improvement of the schools and the renovation of the downtown (choice D) may or may not be related to the increase in property values. It would be logical to conclude that funds for improving the schools and downtown could be gleaned from additional resources from increased property taxes, another effect of increased property values. The relocation of a major corporation to a neighboring town (choice E) could account for the increased desirability of property in South Orange, but the direct access to the city is a more compelling reason. Perhaps a few hundred persons may work in the corporation, but many thousands are likely to want an easy commute to the city.