Cool Games Corporation derives all of its revenues through the sales of video games. Last year, it fell just short of making a profit although it had strong revenues of $200 million worldwide, half from children and half from adults. This year, the company's sales to children rose 20% to $120 million, but its sales to adults dropped 40% to a disappointing $60 million. One of the most renowned Wall Street analysts had forecasted that Cool Games Corporation would need to at least match its revenues of last year in order to have a chance to make a profit on video games this year. Upon hearing the news of the Cool Games Corporation's revenue, the analyst concluded that it was not possible for the company to have made a profit this year.
The analyst's conclusion is based on which of the following assumptions?
Life in an urban center, with daily experiences of subways, crowded sidewalks and dense living, provides countless opportunities for social contact and connection. Exurban life, by contrast, exists in the openness of freeways and one-acre lots, exhibiting little that would suggest social commonality. Yet studies show that people who live in exurbia consistently rate their feeling of connectedness to their community as strong whereas urban dwellers more frequently express feelings of isolation.
Which of the following, if true, contributes most to an explanation of the difference in the reported feelings of connectedness between urban and exurban dwellers?
The Breton Symphony Orchestra board of directors and the musicians' union are currently in contract negotiations. The musicians` union is considering proposing a new contract that would demand the following: a 10% increase in musician salaries, the creation of a new financial bonus system for musicians who have been with the orchestra for at least six years, and a limit on the number of rehearsals per week.
The answer to which of the following questions is LEAST important in helping the union to determine whether the board will be inclined to accept the new contract proposal?
The cost of manufacturing automobiles is considerably greater in Esteria than in Burdistan. In order to stimulate Esterian consumers` purchases of domestically manufactured automobiles, the Esterian government has historically charged taxes on automobiles manufactured in Burdistan. Five years ago, however, the Esterian government dropped those taxes; in those five years, the number of workers employed in Esterian automobile factories has decreased by 30%. Therefore, the number of vehicles manufactured and sold in Esteria must have decreased in the last five years.
Which of the following, if true, most weakens the argument?
One feature of the global food economy is the simultaneous import and export of the same items, a phenomenon known as "redundant trade." In California, for example, domestic cherries are exported to Canada and Japan, while a nearly equivalent number of cherries are imported from Chile, Italy, and Germany. California also exports and imports nearly identical amounts of lettuce and almonds. Although shipping fresh fruits and vegetables is an expensive undertaking, there is a justifiable economic rationale for redundant trade.
Which of the following, if true, most strongly supports the conclusion above?
Travel agents are market intermediaries who make their living by gathering, organizing, and dispensing information about travel-related services that is not readily available to most consumers. Through new information technologies, such as the internet, much of this information can now be made directly available to consumers. Demand for the services of travel agents will be drastically reduced.
Which of the following, if true , most seriously weakens the argument ?
Last August the XT chain of gasoline stations had a temporary sales promotion in effect. In the promotion , any customer who made a purchase of ten or more gallons of gasoline was entitled to a free car wash . For the month of August , XT experienced a ten percent increase in gasoline sales as compared to sales in August the previous year so evidently the promotion was successful as a means of boosting sales.
In evaluating the argument , it would be most helpful to answer which of the following ?