GMAT Verbal: Critical Reasoning Evaluate the Argument 3

Question 1

A restaurant chain plans to cut prices, predicting higher profit from more customers. Which question is most useful to evaluate the plan?

Accepted Answer

Will the extra sales volume offset the lower margin per sale?

Answer

Profit rises only if added volume more than compensates for thinner margins.

Question 2

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?

Accepted Answer

Whether the new book targets the same audience and genre as the last

Answer

Past success transfers only if the new book appeals to a similar market.

Question 3

A factory plans to switch suppliers to save money. Which question most helps evaluate whether the switch will actually cut costs?

Accepted Answer

Will the cheaper parts raise defect or warranty costs?

Answer

Lower part prices can be erased by higher defect, rework, or warranty expenses.

Question 4

A gym claims adding pools will increase membership, citing a rival gym with pools that has more members. What best helps evaluate the claim?

Accepted Answer

Whether the rival's higher membership is due to its location, not its pool

Answer

If location drives the rival's membership, copying the pool may not work.

Question 5

A city forecasts that a new highway will ease congestion. Which question would be most useful to evaluate this forecast?

Accepted Answer

Will the new highway induce additional driving that fills the added capacity?

Answer

Induced demand can fill new capacity, leaving congestion unchanged.

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