Verbal: Critical Reasoning Evaluate the Argument Flashcards
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Read the first 7 Verbal: Critical Reasoning Evaluate the Argument flashcards as text
A restaurant chain plans to cut prices, predicting higher profit from more customers. Which question is most useful to evaluate the plan?
Answer: Will the extra sales volume offset the lower margin per sale?
Profit rises only if added volume more than compensates for thinner margins.
A publisher argues an author's next book will sell well because her last book was a bestseller. What would most help assess this prediction?
Answer: Whether the new book targets the same audience and genre as the last
Past success transfers only if the new book appeals to a similar market.
A factory plans to switch suppliers to save money. Which question most helps evaluate whether the switch will actually cut costs?
Answer: Will the cheaper parts raise defect or warranty costs?
Lower part prices can be erased by higher defect, rework, or warranty expenses.
A gym claims adding pools will increase membership, citing a rival gym with pools that has more members. What best helps evaluate the claim?
Answer: Whether the rival's higher membership is due to its location, not its pool
If location drives the rival's membership, copying the pool may not work.
A city forecasts that a new highway will ease congestion. Which question would be most useful to evaluate this forecast?
Answer: Will the new highway induce additional driving that fills the added capacity?
Induced demand can fill new capacity, leaving congestion unchanged.
An online retailer argues free shipping will boost profit by increasing orders. What information is most relevant to evaluate this?
Answer: Whether shipping costs absorbed will exceed the profit from extra orders
Free shipping helps profit only if added order profit outweighs the shipping the firm now pays.
A nonprofit predicts that a celebrity endorsement will raise donations because a similar charity's donations rose after one. What would most help evaluate the prediction?
Answer: Whether the other charity also ran a major fundraising drive at the same time
A concurrent fundraising drive could be the true cause of the other charity's rise.