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?

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?

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?

A recent survey conducted in the New Homes magazine indicated that more than 70% of its readers are planning to purchase or build a new home over the next two years. Based on the results of the survey, the editor of the magazine concluded that over the next two years, the real estate industry is likely to experience rapid growth driven by the high market demand for new homes.

Which of the following statements, if true, would be the most damaging to the conclusion of the magazine's editor?

Antoine: The alarming fact is that among children aged 19 years and younger, the number taking antipsychotic medicines soared 73 percent in the last four years. That is greater than the increase in the number of adults taking antipsychotic medicines during the same period.

Lucy: But the use of antipsychotic drugs by adults is considered normal at the current rate of 11 adults per 1,000 taking the drugs. In contrast, the number of children on antipsychotic medication last year was 6.6 per 1,000 children.

Lucy's argument is structured to lead to which of the following as a conclusion?

Fact: Asthma, a bronchial condition, is much less common ailment than hay fever, an allergic inflammation of the nasal passages.Fact: Over 95 percent of people who have asthma also suffer from hay fever.

If the information given as facts above is true, which of the following must also be true?

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?