Sandeep Gupta – Director, Ivy-GMAT
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The 700-800 Club Critical Reasoning Critical Reasoning Topic 1: CONCLUSION 1. In the United States, about $5,200 per person per year is spent on health care, while in Britain the amount is about half that. A recent study indicated that middle-aged white Americans have a significantly higher rate of diabetes and heart disease than do middle-aged white Britons. Even after eliminating from the study the lifestyle differences of diet, exercise, smoking, and drinking, the data showed that the Americans have poorer health than their British counterparts. The statements above, if true, best support which of the following assertions? A) Health care spending in the United States should be reduced by 50%. b) More expensive health care causes a higher incidence of certain diseases. c) The money spent on health care in the United States is not being used effectively. d) The average health care spending for middle-aged white Americans is probably less than the average health care spending for Americans in general. e) Something other than diet, exercise, smoking, and drinking must account for the difference in health for the two groups in the study. 2. Spokesperson: In the 2006 election of the city mayor, 55% of the voters were female. All the voters were between ages 18 and 70 and 2/3 of them supported the incumbent mayor. The incumbent mayor won the election with a substantially greater number of votes than any other candidate. If the statements made by the Spokesperson are true, then which of the following must be true? A) At least 1/2 of the female voters supported the incumbent mayor. b) The incumbent mayor received stronger support from the female voters than from the male voters. c) There were no other candidates in the election who received more than 30% of all the votes. d) 45% of the voters in the election were male and none of them were 75 years old. e) If the proportion of male and female voters in the city remains the same, the incumbent mayor is also likely to win the next election. 3. In 2003, the Making Hits Record Company spent 40% of its total budget on the production of ten albums, 30% of its budget on the marketing of these albums, and the remainder of its budget on overhead costs. In the same year, the Song Factory Record Company spent 20% of its total budget on the production of 10 albums and 60% of its budget on the marketing of these albums. Making Hits sold a total of 800,000 copies of the ten records it produced in 2003, while the Song Factory sold a total of 1,600,000 copies of the ten records it produced in 2003. Assuming each company met its budget, which of the following conclusions is best supported by the information given above? A) The amount of money spent on marketing is directly related to the number of copies sold. b) Making Hits spent more money on the production of its albums in 2003 than did the Song Factory.
c) Song Factory’s total revenue from the sale of albums produced in 2003 was higher than that of Making Hits. d) In 2003, Making Hits spent a larger percentage of its budget on overhead costs than did the Song Factory. e) The Song Factory sold more copies of its 2003 albums than Making Hits did because the Song Factory spent a higher percentage of its budget on the marketing of its albums. 4. Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only “seats” in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be...