GMAT
A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.In the argument above, the two portions in boldface play which of the following roles?
City Official: At City Hospital, uninsured patients tend to have shorter stays and fewer procedures performed than do insured patients, even though insured patients, on average, have slightly less serious medical problems at the time of admission to the hospital than uninsured patients have. Critics of the hospital have concluded that the uninsured patients are not receiving proper medical care. However, this conclusion is almost certainly false. Careful investigation has recently shown two things: insured patients have much longer stays in the hospital than necessary, and they tend to have more procedures performed than are medically necessary.In the city official's argument, the two boldface portions play which of the following roles?
In the United States, of the people who moved from one state to another when they retired, the percentage who retired to Florida has decreased by three percentage points over the past ten years. Since many local businesses in Florida cater to retirees, this decline is likely to have a noticeably negative economic effect on these businesses.Which of the following, if true, most seriously weakens the argument?
That the application of new technology can increase the productivity of existing coal mines is demonstrated by the case of Tribnia's coal industry. Coal output per miner in Tribnia is double what it was five years ago, even though no new mines have opened.Which of the following can be properly concluded from the statement about coal output per miner in the passage?
In parts of South America, vitamin-A deficiency is a serious health problem, especially among children. In one region, agriculturists are attempting to improve nutrition by encouraging farmers to plant a new variety of sweet potato called SPK004 that is rich in beta-carotene, which the body converts into vitamin A. The plan has good chances of success, since sweet potato is a staple of the region's diet and agriculture, and the varieties currently grown contain little beta-carotene.Which of the following, if true, most strongly supports the prediction that the plan will succeed?
The spacing of the four holes on a fragment of a bone flute excavated at a Neanderthal campsite is just what is required to play the third through sixth notes of the diatonic scale——the seven-note musical scale used in much of Western music since the Renaissance. Musicologists therefore hypothesize that the diatonic musical scale was developed and used thousands of years before it was adopted by Western musicians.Which of the following, if true, most strongly supports the hypothesis?
It is illegal to advertise prescription medications in Hedland except directly to physicians, either by mail or in medical journals. A proposed law would allow general advertising of prescription medications. Opponents object that the general population lacks the specialized knowledge to evaluate such advertisements and might ask their physicians for inappropriate medications. But since physicians have the final say as to whether to prescribe a medication for a patient, inappropriate prescriptions would not become more common.Which of the following would it be most useful to establish in order to evaluate the argument?
Which of the following most logically completes the argument below?Davison River farmers are currently deciding between planting winter wheat this fall or spring wheat next spring. Winter wheat and spring wheat are usually about equally profitable. Because of new government restrictions on the use of Davison River water for irrigation, per acre yields for winter wheat, though not for spring wheat, would be much lower than average. Therefore, planting spring wheat will be more profitable than planting winter wheat, since_____.
Which of the following most logically completes the passage below?Heavy rains during Centralia's corn planting season prevented some farmers there from planting corn. It is now the planting season for soybeans, another of Centralia's principal crops, and those fields originally intended for corn are dry enough for planting. Nonetheless, even though soybean prices are unusually high at present, the farmers will leave most of these fields empty rather than plant them with soybeans, since________.
A company plans to develop a prototype weeding machine that uses cutting blades with optical sensors and microprocessors that distinguish weeds from crop plants by differences in shade of color. The inventor of the machine claims that it will reduce labor costs by virtually eliminating the need for manual weeding.Which of the following is a consideration in favor of the company's implementing its plan to develop the prototype?
Until now, only injectable vaccines against influenza have been available. Parents are reluctant to subject children to the pain of injections, but adults, who are at risk of serious complications from influenza, are commonly vaccinated. A new influenza vaccine, administered painlessly in a nasal spray, is effective for children. However, since children seldom develop serious complications from influenza, no significant public health benefit would result from widespread vaccination of children using the nasal spray.Which of the following is an assumption on which the argument depends?
Hunter: Hunters alone are blamed for the decline in Greenrock National Forest's deer population over the past ten years. Yet clearly, black bears have also played an important role in this decline. In the past ten years, the forest's protected black bear population has risen sharply, and examination of black bears found dead in the forest during the deer hunting season showed that a number of them had recently fed on deer.In the hunter's argument, the boldface portion plays which of the following roles?
Which of the following most logically completes the passage?Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo does not have the same financial incentive to adopt such a policy, because ______.
Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.Which of the following, if true, most strongly supports the psychologists' interpretation of the studies?
Economist: Tropicorp, which constantly seeks profitable investment opportunities, has been buying and clearing sections of tropical forest for cattle ranching, although pastures newly created there become useless for grazing after just a few years. The company has not gone into rubber tapping, even though greater profits can be made from rubber tapping, which leaves the forest intact. Thus, some environmentalists conclude that Tropicorp has not acted wholly out of economic self-interest. However, these environmentalists are probably wrong. The initial investment required for a successful rubber-tapping operation is larger than that needed for a cattle ranch. Furthermore, there is a shortage of workers employable in rubber-tapping operations, and finally, taxes are higher on profits from rubber tapping than on profits from cattle ranching.In the economist's argument, the two boldfaced portions play which of the following roles?
Brochure: Help conserve our city's water supply. By converting the landscaping in your yard to a water-conserving landscape, you can greatly reduce your outdoor water use. A water-conserving landscape is natural and attractive, and it also saves you money.Criticism: For most people with yards, the savings from converting to a water-conserving landscape cannot justify the expense of new landscaping, since typically the conversion would save less than twenty dollars on a homeowner's yearly water bills.Which of the following, if true, provides the best basis for a rebuttal of the criticism?
Which of the following most logically completes the argument?The last members of a now-extinct species of a European wild deer called the giant deer lived in Ireland about 16,000 years ago. Prehistoric cave paintings in France depict this animal as having a large hump on its back. Fossils of this animal, however, do not show any hump. Nevertheless, there is no reason to conclude that the cave paintings are therefore inaccurate in this regard, since __________.
Shipping Clerk: The five specially ordered shipments sent out last week were sent out on Thursday. Last week, all of the shipments that were sent out on Friday consisted entirely of building supplies, and the shipping department then closed for the weekend. Four shipments were sent to Truax Construction last week, only three of which consisted of building supplies.If the shipping clerk's statements are true, which of the following must also be true?
Although most smoking-related illnesses are caused by inhaling the tar in tobacco smoke, it is addiction to nicotine that prevents most smokers from quitting. In an effort to decrease the incidence of smoking-related illnesses, lawmakers in Sandonia plan to reduce the average quantity of nicotine per cigarette by half over the next five years. Unfortunately, smokers who are already addicted to nicotine tend to react to such reductions by smoking correspondingly more cigarettes.The information above most strongly supports which of the following predictions about the effects of implementing the Sandonian government's plan?
Newspaper editorial:In an attempt to reduce the crime rate, the governor is getting tough on criminals and making prison conditions harsher. Part of this effort has been to deny inmates the access they formerly had to college-level courses. However, this action is clearly counter to the governor's ultimate goal, since after being released from prison, inmates who had taken such courses committed far fewer crimes overall than other inmates.Which of the following is an assumption on which the argument depends?