This is an MCQ quiz for GMAT, which includes questions on the critical section which comes under verbal reasoning.
A large company has recently increased its dividend payments to shareholders. Shareholders had previously been worried about the company"s stock price, but are now relieved since increasing dividends generally boosts a company"s stock price. However, the shareholders" optimism may be ill-founded since spending money on the payment of dividends often indicates that the company has exhausted more lucrative investments for its cash reserves and that the stock price will likely fall in the longer run. In the argument above, the two bold-faced portions play which of the following roles?
Recently, some economists have concluded that the major impediment to job growth in the U.S. is the enormous national debt. While many politicians would like to stimulate job growth by increasing government spending, these economists believe it will have the opposite effect and thus want to cut spending immediately. Historically, when total debt levels exceed 90% of domestic GDP, economic growth falls significantly causing job losses and overall economic malaise. The current U.S. debt is over 96% of GDP, so it is hard to argue the importance of decreasing this percentage and the economists are correct on this point. However, what these economists fail to understand is that cutting spending at this critical juncture would put too much pressure on a fragile economy. In the short term, spending should be left at current levels and revenue should be increased by increasing taxes on wealthy individuals and some corporations. As the economy strengthens, then spending can be decreased with the goal of reducing the debt percentage of GDP to a figure below 90%. The portions in boldface play which of the following roles?
Recently, motorists have begun purchasing more and more fuel-efficient economy and hybrid cars that consume fewer gallons of gasoline per mile traveled. With that trend, there has been debate as to whether we can conclude that these purchases will actually lead to an overall reduction in the total consumption of gasoline across all motorists. The answer is no, since motorists with more fuel-efficient vehicles are likely to drive more total miles than they did before switching to a more fuel-efficient car, negating the gains from higher fuel-efficiency. Which of the following best describes the roles of the portions in bold?
Business School Dean: We are all in agreement that we must cut unnecessary costs in order to afford our popular international study programs, a hallmark of our unique offering that prospective students know us for. But cutting the marketing budget would be a terrible idea; after all, our unique international programs cannot attract prospective students if we do not properly market them. The portions highlighted in boldface play which of the following roles?
In countries where healthcare is universal and provided free of charge by the government, visits per capita to the doctor are twice as frequent as they are in countries where healthcare is paid at least partly out-of-pocket by the consumer. Presently, governments do not have a reliable way of determining whether the symptoms for which these patients were treated for would have otherwise subsided without medical attention. However, this information does not warrant the conclusion by some universal healthcare critics that in the countries with a higher frequency of doctor visits, about half of them are unnecessary. Alternatively, in those countries where healthcare is not free, consumers often forego visits to the doctor except in cases of severe symptoms. In the argument above, the two boldfaced portions play which of the following roles?
Hiker: With the storm approaching quickly we need to make a decision on how to proceed. We can try to descend the mountain to seek shelter, but then we will undo our progress and lose our chance to reach the summit – and we may not make it all the way down, anyway. We can continue on our current course and hope that the storm misses us or passes quickly, but doing so risks a true disaster. So we should bivouac here, using the time before the storm to set up a safe, secure camp to weather the elements. The hiker’s argument does which of the following?
Genetically-altered trees have been developed that can remove toxins from the air more quickly than naturally-occurring trees can. However, we will not know whether the modified trees adversely affect the environment without actually planting them and carefully monitoring the environment for at least several years. Since this might cause irrevocable harm to the surrounding area, we should resist the temptation to use these trees until long-term research in a closed environment has been completed. Which of the following best describes the method of argument used in the argument above?
University X has announced that its library will not be open during the summer. Students attending classes during the summer have protested, saying that the library has research materials that cannot be borrowed from any public library in the area. The university administration has responded with an announcement that all university library materials will be accessible online through computers that are provided to all students for free by the university. Which of the following best describes a method of argument used by the university administration?
Incumbent candidate for governor: As the people of our great state know, my administration has created unprecedented economic prosperity and job growth. Just look at the unemployment rate, which has reached its lowest point in nearly twenty years! Opposing candidate for governor: That’s preposterous. You overlook the fact that the unemployment rate is just as much a function of the number of people in the labor market as it is of the number of people employed. Your greatest contribution to the economy has been a series of retirement parties and moves to other states! The opposing candidate’s reply to the incumbent proceeds by:
Diet Company Executive: Our “12-Weeks-to-Skinny” diet plan is the best in the country. Each year we send out a comprehensive survey to everyone who enrolled in this plan. The survey contains questions about everything from the quality of food in the program to the percentage of weight lost during the 12 weeks. Amazingly, last year over 80% of the survey respondents lost more than 10% of their body weight during the 12-week period, a figure unprecedented among diet companies. The executive’s claim about the quality of the diet plan is most vulnerable to criticism on which of the following grounds?