GMAT GMAT SECTION 3: VERBAL ABILITY Exam
GMAT Section 3: Verbal Ability (Page 6 )

Updated On: 30-Jan-2026

Any tax relief received by the solar industry would not benefit the homeowner who installs a solar-energy system. Even though homeowners would pay a lower price for solar-energy system installations because of this tax relief, with the government paying the balance, government revenues come from the public.
The argument above is based on which of the following assumptions?

  1. The tax relief would cause the homeowner to lose, through taxes or reduced government benefits or both, an amount at least equal to the reduction in the price of that homeowner’s solar-energy system installation.
  2. The tax relief that would be received by solar-energy industries would not be offered at the same time as any tax relief for other industries.
  3. Advertisements of the solar-energy industry, by failing to identify the source of government revenues explicitly to the public, mask the advantage the industry receives from the public.
  4. Homeowners generally believe that they benefit from any tax relief offered to the solar-energy industry.
  5. Tax relief would encourage solar industries to sell solar-energy systems at higher prices.

Answer(s): A



In the suburbs surrounding Middletown, there is an average of 2.4 automobiles per family, and thus very few suburban residents use public buses. The suburban communities, therefore, would derive little benefit from continuing to subsidize the portion of Middletown’s public bus system that serves the suburbs.
Which of the following, if true, casts the most serious doubt on the conclusion drawn above?

  1. The real-estate tax rate in Middletown is higher than it is in the suburbs.
  2. Last year voters in the suburban communities defeated by a narrow margin a bill designed to increase subsidies for public bus routes.
  3. Many suburban shops can attract enough employees to remain in business only because subsidized public transportation from Middletown is available.
  4. Public buses operated with less than a 35 percent occupancy rate produce more pollution per passenger mile than would the operation of private automobiles for each passenger.
  5. Most voters in Middletown’s suburban communities are unwilling to continue subsidies for public buses next year if rider ship on those buses drops below current levels.

Answer(s): C



For the safety-conscious Swedish market, a United States manufacturer of desktop computers developed a special display screen that produces a much weaker electromagnetic field surrounding the user than do ordinary screens. Despite an advantage in this respect over its competitors, the manufacturer is introducing the screen into the United States market without advertising it as a safety improvement.
Which of the following, if true, provides a rationale for the manufacturer’s approach to advertising the screen in the United States?

  1. Many more desktop computers are sold each year in the United States market than are sold in the Swedish market.
  2. The manufacturer does not want its competitors to become aware of the means by which the company has achieved this advance in technology.
  3. Most business and scientific purchasers of desktop computers expect to replace such equipment eventually as better technology becomes available on the market.
  4. An emphasis on the comparative safety of the new screen would call into question the safety of the many screens the manufacturer has already sold in the United States.
  5. Concern has been expressed in the United States over the health effects of the large electromagnetic fields surrounding electric power lines.

Answer(s): D



The argument above would be most significantly weakened if which of the following were true?

  1. Effective laws against the hunting of gray wolves have been enacted.
  2. Ranchers, farmers, and hunters still have an ingrained bias against gray wolves.
  3. By the 1930’s bounty hunters had exterminated most of the gray wolves in the United States.
  4. Programs for increasing the gray wolf population are not aided by federal laws that require the licensing of hunters of certain predators.
  5. Suggested programs for increasing the gray wolf population have been criticized by environmentalists and biologists.

Answer(s): A



An overly centralized economy, not the changes in the climate, is responsible for the poor agricultural production in Country X since its new government came to power. Neighboring Country Y has experienced the same climatic conditions, but while agricultural production has been falling in Country X, it has been rising in Country Y.
Which of the following, if true, would most weaken the argument above?

  1. Industrial production also is declining in Country X.
  2. Whereas Country Y is landlocked, Country X has a major seaport.
  3. Both Country X and Country Y have been experiencing drought conditions.
  4. The crops that have always been grown in Country X are different from those that have always been grown in Country Y.
  5. Country X’s new government instituted a centralized economy with the intention of ensuring an equitable distribution of goods.

Answer(s): D



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