Critical Reasoning MCQ Set 3

Showing question 11 to 13 of total 13 MCQs

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Question No: 11

p>A certain automaker aims to increase its market share by deeply discounting its vehicles' prices for the next several months. The discounts will cut into profits, but because they will be heavily advertised the manufacturer hopes that they will attract buyers away from rival manufacturers' cars. In the longer term, the automaker envisions that customers initially attracted by the discounts may become loyal customers. In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?

1. Whether the automaker's competitors are likely to respond by offering deep discounts on their own products
2. Whether the advertisements will be created by the manufacturer's current advertising agency
3. Whether some of the automaker's models will be more deeply discounted than others
4. Whether the automaker will be able to cut costs sufficientlyto maintain profit margins even when the discounts are in effect
5. Whether an alternative strategy might enable the automaker to enhance its profitability while holding a constant or diminishing share of the market

Question No: 12

In virtually any industry, technological improvements increase labor productivity, which is the output of goods and services per person-hour worked. In Parland's industries, labor productivity is significantly higher than it is in Vergia's industries. Clearly, therefore, Parland's industries must, on the whole, be further advanced technologically than Vergia's are. The argument is most vulnerable to which ofthe following criticisms?

1. It offers a conclusion that is no more than a paraphrase of one of the pieces of information provided in its support.
2. It presents as evidence in support of a claim information that is inconsistent with other evidence presented in support of the same claim.
3. It takes one possible cause of a condition to be the actual cause of that condition without considering any other possible causes.
4. It takes a condition to be the effect of something that happened only after the condition already existed.
5. It makes a distinction that presupposes the truth of the conclusion that is to be established.

Question No: 13

In Washington County, attendance atthe movies isjust large enough for the cinema operators to make modest profits. The size of the county's population is stable and is not expected to increase much. Yet there are investors ready to double the number of movie screens in the county within five years, and they are predicting solid profits both for themselves and for the established cinema operators. Which of the following, if true about Washington County, most helps to provide a justification for the investors' prediction?

1. Over the next ten years, people in their teenage years, the prime moviegoing age, will be a rapidly growing proportion of the county's population.
2. As distinct from the existing cinemas, most ofthe cinemas being plannedwould be located in downtown areas, in hopes of stimulating an economic revitalization of those areas.
3. Spending on video purchases, as well as spending on video rentals, has been increasing modestly each ear for the past ten years.
4. The average number of screens per cinema is lower among existing cinemas than it is among cinemas still in the planning stages.
5. The sale of snacks and drinks in cinemas accounts for a steadily growing share of most cinema operators' profits.