Free GMAT SECTION 3: VERBAL ABILITY Exam Braindumps
GMAT Section 3: Verbal Ability Questions 296–300 (page: 61)

Updated On: 9-Feb-2026

Which of the following best completes the passage below?

When a project is failing and should be terminated, plan to bring in a new manager. New managers are more likely to terminate the project than are the original managers because

  1. the project may have failed for reasons that the original manager could not have foreseen
  2. organizations tend to reward managers who can overcome problems
  3. managerial decisions to terminate a project should depend on the likelihood of the project’s eventual success
  4. the original managers were not necessarily able to overcome problems caused by external events over which they had no control
  5. the new managers have no need to justify the earlier decision to maintain the project

Answer(s): E



State X’s income-averaging law allows a portion of one’s income to be taxed at lower rate than the rate based on one’s total taxable income. To use income averaging, the taxpayer must have earned taxable income for a particular year that exceeds 140 percent of his or her average taxable income for the previous three years.
People using income averaging owe less tax for that year than they would without income averaging.
Which of the following individuals would be most seriously affected if income averaging were not permitted in computing the taxes owed for current year?

  1. Individuals whose income has steadily decreased for the past three years
  2. Individuals whose income increased by 50 percent four years ago and has remained the same since then
  3. Individuals whose income has doubled this year after remaining about the same for five years
  4. Individuals who had no income this year, but did in each of the previous three years
  5. Individuals who are retired and whose income has remained about the same for the past ten years

Answer(s): C



According to a recent study, fifteen corporations in the United States that follow a credo of social responsibility are also very profitable. Because of their credos, these fifteen corporations give generously to charity, follow stringent environmental-protection policies, and have vigorous affirmative-action programs.
Which of the following can be correctly inferred from the statements above?

  1. Following a credo of social responsibility helps to make a corporation very profitable.
  2. It is possible for a corporation that follows a credo of social responsibility to be very profitable.
  3. A corporation that gives generously to charity must be doing so because of its credo of social responsibility.
  4. Corporations that are very profitable tend to give generously to charity.
  5. Corporations that have vigorous affirmative-action programs also tend to follow stringent environmental- protection policies.

Answer(s): B



A year after the start an experiment to decrease crime in two high-crime subway stations by the installation of closed-circuit televisions, the experiment is being discontinued, city officials say the program has led to an increase in crime, citing the fact that following the installation, both stations showed increases in the number of crimes reported.
Which of the following, if true, most seriously weakens the claim of the city officials that the program has led to an increase in crime?

  1. The two subway stations had been chosen on the basis subway stations was higher than that of other high- crime subway stations not equipped with closed-circuit-television.
  2. The rate of increase in crimes reported for two subway stations was higher than that of other high-crime subway stations not equipped with closed-circuit television.
  3. The percentage of all crimes committed at the two subway stations that were reported rose as a result of increased instances of observations of crime on the closed-circuit televisions.
  4. The year in which the experiment was conducted was a year in which the total number of crimes reported in the city fell.
  5. Closed-circuit televisions installed in shops and stores throughout the city have proved to be useful in the prevention of shoplifting and burglaries.

Answer(s): C



A government agency that reimburses its clients for bills they have paid for medical care has had this year’s budget cut. To save money without cutting reimbursements or otherwise harming clients financially, it plans to delay reimbursements to clients for forty days, thereby earning $180 million per year in interest on the reimbursement money.
Which of the following, if true, is the best criticism of the agency’s plan?

  1. Hospitals and physicians typically hold patients responsible for the ultimate payment of their bills.
  2. The agency cannot save money by cutting staff because it is already understaffed.
  3. Some clients borrow money to pay their medical bills; they will pay forty extra days of interest on these loans.
  4. Some clients pay their medical bills immediately, but they often take more than forty days to file with the agency for reimbursement.
  5. The agency’s budget was cut by more than $180 million last year.

Answer(s): C



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