QUESTION: 205

Some commentators complain that a “litigation explosion” in the past decade has led to unreasonably high costs for U.S. businesses by encouraging more product liability suits against manufacturers. However, these complaints are based mainly on myth. Statistics show that the number of successful product liability suits has remained almost the same, and the average sum awarded in damages has grown no faster than the inflation rate.

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

The number of unsuccessful suits has skyrocketed, imposing huge new legal expenses on businesses.
Several of the largest awards ever made in product liability cases occurred within the last two years.
The rise of the consumer movement has encouraged citizens to seek legal redress for product flaws.
Lawyers often undertake product liability cases on a contingency basis, so their payment is based on the size of the damages awarded.
Juries often award damages in product liability suits out of emotional sympathy for an injured consumer.

Answer(s): A

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QUESTION: 206

Ronald: According to my analysis of the national economy, housing prices should not increase during the next six months unless interest rates drop significantly.
Mark: I disagree. One year ago, when interest rates last fell significantly, housing prices did not increase at all. It can be inferred from the conversation above that Mark has interpreted Ronald’s statement to mean that

housing prices will rise only if interest rates fall
if interest rates fall, housing prices must rise
interest rates and housing prices tend to rise and fall together
interest rates are the only significant economic factor affecting housing prices
interest rates are likely to fall significantly in the next six months

Answer(s): B

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QUESTION: 207

It’s time we stopped searching for new statistics to suggest that we are not spending enough on education. In fact, education spending increased 30 percent overall during the last decade.

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

Despite increased spending on education, enrollment in our elementary and secondary schools declined about 4 percent during the last ten years.
Our spending on gasoline increased more than 100 percent during the last decade.
When adjusted for inflation, our per-pupil expenditure on education this year is less than it was ten years ago.
Eleven other economically developed nations spend more on education than we do.
The achievement levels of our students have been declining steadily since 1960, and the last decade produced no reversal in this trend.

Answer(s): C

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QUESTION: 208

The U.S. census is not perfect: thousands of Americans probably go uncounted. However, the basic statistical portrait of the nation painted by the census is accurate. Certainly some of the poor go uncounted, particularly the homeless; but some of the rich go uncounted as well, because they are often abroad or traveling between one residence and another.

Which of the following is an assumption on which the argument above depends?

Both the rich and the poor have personal and economic reasons to avoid being counted by the census.
All Americans may reasonably be classified as either poor or rich.
The percentage of poor Americans uncounted by the census is close to the percentage of rich Americans uncounted.
The number of homeless Americans is approximately equal to the number of rich Americans.
The primary purpose of the census is to analyze the economic status of the American population.

Answer(s): C

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Free GMAT SECTION 3: VERBAL ABILITY Exam Braindumps (page: 52)

QUESTION: 205

QUESTION: 206

QUESTION: 207

QUESTION: 208