GMAT Verbal: Critical Reasoning Assumptions 3 — Questions and Answers
Question 1: A restaurant concludes its new menu is popular because revenue rose. Which assumption is necessary?
- Prices were not raised at the same time (Correct answer)
- The chef is famous
- The location is good
- Customers leave reviews
Correct answer: Prices were not raised at the same time
Higher revenue could stem from price increases rather than menu popularity.
Question 2: A scientist says a species is thriving because its population doubled in a protected zone. The argument assumes that:
- The zone is large
- The population was not simply migrating in from outside (Correct answer)
- Predators left the zone
- Funding continued
Correct answer: The population was not simply migrating in from outside
A doubling could reflect inflow rather than genuine growth of the species.
Question 3: A firm decides to cut its cheapest product line to boost average profit margin. This assumes that:
- The cheap line has no customers
- Cutting the line will not reduce sales of other products (Correct answer)
- Margins are the only goal
- Competitors will follow
Correct answer: Cutting the line will not reduce sales of other products
If the cheap line drives traffic to higher-margin items, cutting it could backfire.
Question 4: A college claims its graduates earn more because of its program. A necessary assumption is that:
- The students would not have earned more regardless of the program (Correct answer)
- Tuition is high
- Graduates like the college
- Classes are small
Correct answer: The students would not have earned more regardless of the program
The program gets credit only if the earnings gap is not explained by who enrolls.
Question 5: A coach argues practicing at dawn improves performance because the best players do it. The hidden assumption is that:
- The dawn practice causes their success rather than the reverse (Correct answer)
- Dawn is quiet
- Players are disciplined
- Mornings are cooler
Correct answer: The dawn practice causes their success rather than the reverse
The argument confuses correlation with causation unless dawn practice truly causes skill.
Question 6: A retailer says extending hours will increase profit because more hours means more sales. This assumes that:
- Added revenue exceeds the added staffing and operating costs (Correct answer)
- Customers shop late
- Stores nearby close early
- Staff want overtime
Correct answer: Added revenue exceeds the added staffing and operating costs
Profit rises only if extra sales outweigh the extra costs of staying open.
Question 7: An analyst predicts a stock will rise because it rose after every prior earnings report. A required assumption is that:
- Past patterns will continue to hold this time (Correct answer)
- The company is profitable
- Investors are rational
- The market is open
Correct answer: Past patterns will continue to hold this time
The forecast depends on the historical pattern repeating in the future.
GMAT Verbal: Critical Reasoning Assumptions 3
A restaurant concludes its new menu is popular because revenue rose.
Which assumption is necessary?