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  5. GMAT SECTION 3: VERBAL ABILITY

GMAT GMAT SECTION 3: VERBAL ABILITY Exam
GMAT Section 3: Verbal Ability (Page 12 )

Updated On: 30-Jan-2026
Page 12 of 153
PDF with 747 Questions

Most employees in the computer industry move from company to company, changing jobs several times in their careers. However, Summit Computers is known throughout the industry for retaining its employees. Summit credits its success in retaining employees to its informal, non hierarchical work environment.
Which of the following, if true, most strongly supports Summit’s explanation of its success in retaining employees?

  1. Some people employed in the computer industry change jobs if they become bored with their current projects.
  2. A hierarchical work environment hinders the cooperative exchange of ideas that computer industry employees consider necessary for their work.
  3. Many of Summit’s senior employees had previously worked at only one other computer company.
  4. In a non hierarchical work environment, people avoid behavior that might threaten group harmony and thus avoid discussing with their colleagues any dissatisfaction they might have with their jobs.
  5. The cost of living near Summit is relatively low compared to areas in which some other computer companies are located.

Answer(s): B



Financing for a large construction project was provided by a group of banks. When the money was gone before the project was completed, the banks approved additional loans. Now, with funds used up again and completion still not at hand, the banks refuse to extend further loans, although without those loans, the project is doomed.
Which of the following, if true, best explains why the bank’s current reaction is different from their reaction in the previous instance of depletion of funds?

  1. The banks have reassessed the income potential of the completed project and have concluded that total income generable would be less than total interest due on the old plus the needed new loans.
  2. The banks have identified several other projects that offer faster repayment of the principal if loans are approved now to get those projects started.
  3. The banks had agreed with the borrowers that the construction loans would be secured by the completed project.
  4. The cost overruns were largely due to unforeseeable problems that arose in the most difficult phase of the construction work.
  5. The project stimulated the development and refinement of several new construction techniques, which will make it easier and cheaper to carry out similar projects in the future.

Answer(s): A



Low-income families are often unable to afford as much child care as they need. One government program would award low-income families a refund on the income taxes they pay of as much as $1,000 for each child under age four. This program would make it possible for all low-income families with children under age four to obtain more child care than they otherwise would have been able to afford.
Which of the following, if true, most seriously calls into question the claim that the program would make it possible for all low-income families to obtain more child care?

  1. The average family with children under age four spends more than $1,000 a year on child care.
  2. Some low-income families in which one of the parents is usually available to care for children under age four may not want to spend their income tax refund on child care.
  3. The reduction in government revenues stemming from the income tax refund will necessitate cuts in other government programs, such as grants for higher education.
  4. Many low-income families with children under age four do not pay any income taxes because their total income is too low to be subject to such taxes.
  5. Income taxes have increased substantially over the past twenty years, reducing the money that low-income families have available to spend on child care.

Answer(s): D



Although parapsychology is often considered a pseudoscience, it is in fact a genuine scientific enterprise, for it uses scientific methods such as controlled experiments and statistical tests of clearly stated hypotheses to examine the questions it raises.
The conclusion above is properly drawn if which of the following is assumed?

  1. If a field of study can conclusively answer the questions it raises, then it is a genuine science.
  2. Since parapsychology uses scientific methods, it will produce credible results.
  3. Any enterprise that does not use controlled experiments and statistical tests is not genuine science.
  4. Any field of study that employs scientific methods is a genuine scientific enterprise.
  5. Since parapsychology raises clearly statable questions, they can be tested in controlled experiments.

Answer(s): E



Hotco oil burners, designed to be used in asphalt plants, are so efficient that Hotco will sell one to the Clifton Asphalt plant for no payment other than the cost savings between the total amount the asphalt plant actually paid for oil using its former burner during the last two years and the total amount it will pay for oil using the Hotco burner during the next two years. On installation, the plant will make an estimated payment, which will be adjusted after two years to equal the actual cost savings.
Which of the following, if it occurred, would constitute a disadvantage for Hotco of the plan described above?

  1. Another manufacturer’s introduction to the market of a similarly efficient burner
  2. The Clifton Asphalt plant’s need for more than one new burner
  3. Very poor efficiency in the Clifton Asphalt plant’s old burner
  4. A decrease in the demand for asphalt
  5. A steady increase in the price of oil beginning soon after the new burner is installed

Answer(s): C



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