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?

On average, American consumers buy a new computer every four years even though older computers are still perfectly capable of basic operations such as word processing and surfing the Internet. This is the case despite the fact that most computers are designed to work for approximately ten years.

The statements above, if true, best support which of the following as a conclusion?

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?

At any given time, approximately fifteen percent of all homes in Florida are on the market. In Texas, however, only seven percent of all homes are on the market at any given time. Therefore, one will have a wider selection of homes to choose from if one looks for a home in Florida rather than in Texas.

Which of the following, if true, would most seriously strengthen the argument above?

Albinism is a rare genetic condition that inhibits the production of melanin, or pigmentation, in the skin and hair. People born with albinism are unusually susceptible to sunburn, melanoma, and a range of other health issues that are generally connected to excessive exposure to the sun.

The statements above, if true, provide the most support for which of the following conclusions?

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?

Demand levels for some categories of products are closely interdependent. When one type of a product can serve as a complement for another product, the levels of demand for these goods are positively related. An increase in the demand for one product usually increases the demand for its complementary product. Similarly, a decrease in the demand for one good causes a decrease in the demand for its complementary product.

Which of the following statements provides an example of the relationship between product demands described above?

The Central City Church building was recently damaged by a fire that occurred overnight. The insurance company will not pay on a claim if it is determined that a fire was started deliberately. Since nobody was in the Central City Church building at the time the fire swept through the structure, the insurance company will most certainly reimburse the church for the damage caused by the fire.

Which of the following is an assumption that is required to reach the conclusion above?

During the recent spate of brushfires in the Southwest, homeowners who lived near affected areas were advised to douse their roofs with water to prevent their houses from catching fire before evacuating the area. After the fires were brought under control and the homeowners were allowed to return to the area, many who doused their roofs discovered significant fire damage to their houses. Clearly, then, dousing their roofs was a wasted effort.

Which of the following, if true, would most weaken the conclusion above?

The Blackridge Company, a software retailer, recently implemented a service offering free telephone support for its customers. After 3 months of service, the average length of a technical support call was 15 minutes, 3 minutes higher than the company's target length of 12 minutes. After studying the operations of the new telephone support division, the company discovered that customer support agents were putting customers on hold for an average of 4 minutes per call while these agents researched possible solutions to the technical issues at hand.

From the passage above, it can be inferred that the Blackridge Company could reduce the average length of its customer support calls by doing which of the following, assuming that each is a realistic possibility?

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?

Studies have shown that an automobile that runs on a blend of 85% ethanol/15% gasoline gets better mileage than an otherwise similar car equipped with a gasoline engine. Many American legislators have concluded that an increase in tax incentives for ethanol production would lessen our dependence on foreign oil.

Which of the following, if true, casts the most doubt upon the validity of the legislators` conclusion?

Spokesperson: The major school lunch vendors recently agreed to stop selling high-calorie beverages in elementary and middle schools because studies show that children of ages 7 to 8 who substitute one low-calorie beverage for one high-calorie soft drink in their daily diets will, on average, weigh 20 pounds less than they would have by the time they reach high school. Since only low-calorie beverages will be sold in schools, within six to eight years, we can expect to see a reduction in the percentage of overweight high-school children.

The spokesperson assumes which of the following to be true?

Scientist: All other things being equal, the intensity of heat increases as the distance from the heat source decreases. Knowing this, most people conclude that the Earth's seasons are caused by the Earth's changing distance from the sun. In other words, winter occurs when the Earth is far from the sun, and summer occurs when the earth is close to the sun. However, we know that as North America experiences summer, South America experiences winter, even though the difference in the continents' distance to the sun is negligible. Therefore, the earth's changing distance from the sun does not cause the seasons.

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

The mayor of Coast Town has determined that the best way to pay for the construction of a new library is to charge all residents and non-residents a fee for visiting Coast Town's well-regarded beach. The mayor reasons that at current levels of visitation, the revenue generated from the beach visitation fee will pay for the new library within three years.

Which of the following pieces of information would be most useful in evaluating the mayor's conclusion?