Economist: Tropicorp, which constantly seeks profitable investment opportunities, has been buying and clearing sections of tropical forest for cattle ranching, although pastures newly created there become useless for grazing after just a few years. The company has not gone into rubber tapping, even though greater profits can be made from rubber tapping, which leaves the forest intact. Thus, some environmentalists conclude that Tropicorp has not acted wholly out of economic self-interest. However, these environmentalists are probably wrong. The initial investment required for a successful rubber-tapping operation is larger than that needed for a cattle ranch. Furthermore, there is a shortage of workers employable in rubber-tapping operations, and finally, taxes are higher on profits from rubber tapping than on profits from cattle ranching.

In the economist's argument, the two boldfaced portions play which of the following roles?

Shipping Clerk: The five specially ordered shipments sent out last week were sent out on Thursday. Last week, all of the shipments that were sent out on Friday consisted entirely of building supplies, and the shipping department then closed for the weekend. Four shipments were sent to Truax Construction last week, only three of which consisted of building supplies.

If the shipping clerk's statements are true, which of the following must also be true?

Although most smoking-related illnesses are caused by inhaling the tar in tobacco smoke, it is addiction to nicotine that prevents most smokers from quitting. In an effort to decrease the incidence of smoking-related illnesses, lawmakers in Sandonia plan to reduce the average quantity of nicotine per cigarette by half over the next five years. Unfortunately, smokers who are already addicted to nicotine tend to react to such reductions by smoking correspondingly more cigarettes.

The information above most strongly supports which of the following predictions about the effects of implementing the Sandonian government's plan?

In Patton City, days are categorized as having heavy rainfall (more than two inches), moderate rainfall (more than one inch, but no more than two inches), light rainfall (at least a trace, but no more than one inch), or no rainfall. In 1990, there were fewer days with light rainfall than in 1910 and fewer with moderate rainfall, yet total rainfall for the year was 20 percent higher in 1990 than in 1910.

If the statements above are true, then it is also possible that in Patton City

During the past year, Pro-Tect Insurance Company's total payouts on car-theft claims were larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing antitheft devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect's plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

City Official: At City Hospital, uninsured patients tend to have shorter stays and fewer procedures performed than do insured patients, even though insured patients, on average, have slightly less serious medical problems at the time of admission to the hospital than uninsured patients have. Critics of the hospital have concluded that the uninsured patients are not receiving proper medical care. However, this conclusion is almost certainly false. Careful investigation has recently shown two things: insured patients have much longer stays in the hospital than necessary, and they tend to have more procedures performed than are medically necessary.

In the city official's argument, the two boldface portions play which of the following roles?

Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. Seafood stores buy fish from the same wholesalers and at the same prices, and other business expenses have also been about the same. But new tax breaks will substantially lower the cost of doing business within the city. Therefore, in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores.

For the purposes of evaluating the argument, it would be most useful to know whether

Commercially available chemical fertilizers contain the same nutrients and micronutrients as organic fertilizers such as manure and composted garden clippings. Plants have tiny root hairs that absorb nutrients, and whether the source of the nutrients is organic or chemical is irrelevant to the plant's ability to take in the nutrients. Nevertheless, organic fertilizers are better for the health of the plant than are chemical fertilizers alone.

Which of the following, if true, would most strongly support the position above?

A company determines its yearly profits by deducting its operating expenses from its revenue for that year. Company X manufactures only widgets and gadgets. Company X's profits for this year are significantly higher than those for last year, although the company's operating expenses remained the same and the company sold the same number of widgets and gadgets as it did last year.

The statements above, if true, best support which of the following conclusions?

Surveys consistently show that the best-selling ice cream flavor is vanilla, although those who prefer chocolate rarely order vanilla. Vanilla-flavored candy, then, probably sells better than chocolate-flavored candy.

Which of the following is an assumption upon which the author of the argument relies?

In recent years, the Holdsville Transportation Authority (HTA) has noted consistent delays on its Holdsville-River Valley bus, which runs from downtown Holdsville to the suburb of River Valley. In order to decrease the commuting time from Holdsville to River Valley, the HTA recently eliminated the James Street stop on the Holdsville-River Valley line. However, data show that the average commuting time from Holdsville to River Valley has actually increased since the elimination of the stop.

Which of the following provides the best explanation for the increase in commuting time from Holdsville to River Valley?

Normally, businesses operate at a profit. In other words, they sell their products to customers for more money than the products initially cost. This pricing structure permits businesses to sustain themselves over time. The Stop and Go Supermarket, however, sells its milk for less money than it costs.

Which of the following, if true, would best explain why the pricing structure for milk makes economic sense for Stop and Go?

Smith, a basketball player, successfully made 80% of the shots that he attempted this year – an exceptionally high percentage for a player in Smith's league. However, this statistic does not mean that Smith is an exceptional shooter, because the best shooters take many shots from risky locations 20 or more feet away from the basket. Instead, Smith's high shooting percentage simply shows that he takes most of his shots from locations very close to the basket.

Which of the following statements, if true, provides additional support for the argument?

The hepatitis B virus is common in China relative to other countries in the region. The disease can easily be prevented through vaccination, regulation of barbershop and manicure practices, and health education. Yet, the incidence of this disease continues to rise in China, while it remains stable or is falling in China's neighboring countries.

Which of the following, if true, would best explain the situation described above?

A study of kindergarten students has shown that children from households that own many books, an average of 54 books, show average or high reading achievement levels, while the households of children with lower reading achievement levels tend to own fewer books, 5 books on average.

What additional information would strengthen the assertion that parents who don`t buy children's books to keep in the home cause their children to fall behind their peers in reading skills?