GMAC Critical Reasoning Flashcards

A plan to improve employee retention proposes increasing salaries. A critic argues that employees leave primarily due to poor management, not pay. Which type of argument does the critic make?

Answer: Attacking the root cause assumption

The critic challenges the assumption that pay is the main driver of turnover, suggesting the plan targets the wrong cause.

'Since Company A launched its loyalty program, customer repeat purchases increased 30%. Loyalty programs always increase repeat purchases.' Which flaw is present?

Answer: Hasty generalization from one example to a universal claim

Drawing a universal conclusion ('always') from a single company's experience is a hasty generalization.

Which of the following most effectively resolves the paradox: 'Sales increased, yet profits declined'?

Answer: Operating costs rose faster than revenue growth

If costs grew faster than revenue, profits could fall despite higher sales, resolving the apparent contradiction.

A business school applicant argues: 'I should be admitted because I need the degree to advance my career.' Why is this a weak argument?

Answer: Need alone does not demonstrate merit or qualification

Admissions decisions are merit-based; personal need does not demonstrate the applicant's ability to succeed in the program.

'Whenever the economy grows, unemployment falls. The economy grew last quarter. Therefore, unemployment fell last quarter.' This is an example of:

Answer: Valid deductive reasoning

The argument follows a valid deductive form (modus ponens): if P then Q; P is true; therefore Q is true.

Which of the following, if true, most weakens: 'Remote work increases productivity, so our company should allow all employees to work remotely'?

Answer: Employees in roles requiring physical presence cannot work remotely

If many roles require physical presence, the blanket policy of 'all employees' would be impractical, weakening the recommendation.