Page 1
GMAT AWA PRACTICE PAPER 3
Question: 1
The following appeared in the editorial section of a local newspaper:
“Commuter use of the new subway train is exceeding the transit company’s projections.
However, commuter use of the shuttle buses that transport people to the subway stations is
below the projected volume. If the transit company expects commuters to ride the shuttle buses
to the subway rather than drive there, it must either reduce the shuttle bus fares or increase the
price of parking at the subway stations.”
Discuss how well reasoned . . . etc.
Question: 2
The following was excerpted from the speech of a spokesperson for Synthetic Farm Products,
Inc.:
“Many farmers who invested in the equipment needed to make the switch from synthetic to
organic fertilizers and pesticides feel that it would be too expensive to resume synthetic farming
at this point. But studies of farmers who switched to organic farming last year indicate that their
current crop yields are lower. Hence their purchase of organic farming equipment, a relatively
minor investment compared to the losses that would result from continued lower crop yields,
cannot justify persisting on an unwise course. And the choice to farm organically is financially
unwise, given that it was motivated by environmental rather than economic concerns.”
Discuss how well reasoned . . . etc
Question: 3
The following appeared in a newspaper story giving advice about investments:
“As overall life expectancy continues to rise, the population of our country is growing
increasingly older. For example, more than 20 percent of the residents of one of our more
populated regions are now at least 65 years old, and occupancy rates at resort hotels in that
region declined significantly during the past six months. Because of these two related trends, a
prudent investor would be well advised to sell interest in hotels and invest in hospitals and
Page 2
GMAT AWA PRACTICE PAPER 3
Question: 1
The following appeared in the editorial section of a local newspaper:
“Commuter use of the new subway train is exceeding the transit company’s projections.
However, commuter use of the shuttle buses that transport people to the subway stations is
below the projected volume. If the transit company expects commuters to ride the shuttle buses
to the subway rather than drive there, it must either reduce the shuttle bus fares or increase the
price of parking at the subway stations.”
Discuss how well reasoned . . . etc.
Question: 2
The following was excerpted from the speech of a spokesperson for Synthetic Farm Products,
Inc.:
“Many farmers who invested in the equipment needed to make the switch from synthetic to
organic fertilizers and pesticides feel that it would be too expensive to resume synthetic farming
at this point. But studies of farmers who switched to organic farming last year indicate that their
current crop yields are lower. Hence their purchase of organic farming equipment, a relatively
minor investment compared to the losses that would result from continued lower crop yields,
cannot justify persisting on an unwise course. And the choice to farm organically is financially
unwise, given that it was motivated by environmental rather than economic concerns.”
Discuss how well reasoned . . . etc
Question: 3
The following appeared in a newspaper story giving advice about investments:
“As overall life expectancy continues to rise, the population of our country is growing
increasingly older. For example, more than 20 percent of the residents of one of our more
populated regions are now at least 65 years old, and occupancy rates at resort hotels in that
region declined significantly during the past six months. Because of these two related trends, a
prudent investor would be well advised to sell interest in hotels and invest in hospitals and
nursing homes instead.”
Discuss how well reasoned . . . etc.
Question: 4
The following appeared as part of the business plan of an investment and financial consulting
firm:
“Studies suggest that an average coffee drinker’s consumption of coffee increases with age, from
age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola
drinker’s consumption of cola, however, declines with increasing age. Both of these trends have
remained stable for the past 40 years. Given that the number of older adults will significantly
increase as the population ages over the next 20 years, it follows that the demand for coffee will
increase and the demand for cola will decrease during this period. We should, therefore,
consider transferring our investments from Cola Loca to Early Bird Coffee.”
Discuss how well reasoned . . . etc.
Question: 5
The following appeared in the editorial section of a West Cambria newspaper:
“A recent review of the West Cambria volunteer ambulance service revealed a longer average
response time to accidents than was reported by a commercial ambulance squad located in East
Cambria. In order to provide better patient care for accident victims and to raise revenue for our
town by collecting service fees for ambulance use, we should disband our volunteer service and
hire a commercial ambulance service.”
Discuss how well reasoned . . . etc.
Question: 6
Page 3
GMAT AWA PRACTICE PAPER 3
Question: 1
The following appeared in the editorial section of a local newspaper:
“Commuter use of the new subway train is exceeding the transit company’s projections.
However, commuter use of the shuttle buses that transport people to the subway stations is
below the projected volume. If the transit company expects commuters to ride the shuttle buses
to the subway rather than drive there, it must either reduce the shuttle bus fares or increase the
price of parking at the subway stations.”
Discuss how well reasoned . . . etc.
Question: 2
The following was excerpted from the speech of a spokesperson for Synthetic Farm Products,
Inc.:
“Many farmers who invested in the equipment needed to make the switch from synthetic to
organic fertilizers and pesticides feel that it would be too expensive to resume synthetic farming
at this point. But studies of farmers who switched to organic farming last year indicate that their
current crop yields are lower. Hence their purchase of organic farming equipment, a relatively
minor investment compared to the losses that would result from continued lower crop yields,
cannot justify persisting on an unwise course. And the choice to farm organically is financially
unwise, given that it was motivated by environmental rather than economic concerns.”
Discuss how well reasoned . . . etc
Question: 3
The following appeared in a newspaper story giving advice about investments:
“As overall life expectancy continues to rise, the population of our country is growing
increasingly older. For example, more than 20 percent of the residents of one of our more
populated regions are now at least 65 years old, and occupancy rates at resort hotels in that
region declined significantly during the past six months. Because of these two related trends, a
prudent investor would be well advised to sell interest in hotels and invest in hospitals and
nursing homes instead.”
Discuss how well reasoned . . . etc.
Question: 4
The following appeared as part of the business plan of an investment and financial consulting
firm:
“Studies suggest that an average coffee drinker’s consumption of coffee increases with age, from
age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola
drinker’s consumption of cola, however, declines with increasing age. Both of these trends have
remained stable for the past 40 years. Given that the number of older adults will significantly
increase as the population ages over the next 20 years, it follows that the demand for coffee will
increase and the demand for cola will decrease during this period. We should, therefore,
consider transferring our investments from Cola Loca to Early Bird Coffee.”
Discuss how well reasoned . . . etc.
Question: 5
The following appeared in the editorial section of a West Cambria newspaper:
“A recent review of the West Cambria volunteer ambulance service revealed a longer average
response time to accidents than was reported by a commercial ambulance squad located in East
Cambria. In order to provide better patient care for accident victims and to raise revenue for our
town by collecting service fees for ambulance use, we should disband our volunteer service and
hire a commercial ambulance service.”
Discuss how well reasoned . . . etc.
Question: 6
The following is part of a business plan being discussed at a board meeting of the Perks
Company:
“It is no longer cost-effective for the Perks Company to continue offering its employees a
generous package of benefits and incentives year after year. In periods when national
unemployment rates are low, Perks may need to offer such a package in order to attract and keep
good employees, but since national unemployment rates are now high, Perks does not need to
offer the same benefits and incentives. The money thus saved could be better used to replace the
existing plant machinery with more technologically sophisticated equipment, or even to build an
additional plant.”
Discuss how well reasoned . . . etc.
Question: 7
The following appeared in an editorial from a magazine produced by an organization dedicated
to environmental protection:
“In order to effectively reduce the amount of environmental damage that industrial
manufacturing plants cause, those who manage the plants must be aware of the specific amount
and types of damage caused by each of their various manufacturing processes. However, few
corporations have enough financial incentive to monitor this information. In order to guarantee
that corporations reduce the damage caused by their plants, the federal government should
require every corporation to produce detailed annual reports on the environmental impact of their
manufacturing process, and the government should impose stiff financial penalties for failure to
produce these reports.”
Discuss how well reasoned . . .etc.
Question: 8
The following appeared as part of a plan proposed by an executive of the Easy Credit Company
to the president:
“The Easy Credit Company would gain an advantage over competing credit card services if we
were to donate a portion of the proceeds from the use of our cards to a well-known
environmental organization in exchange for the use of its symbol or logo on our card. Since a
recent poll shows that a large percentage of the public is concerned about environmental issues,
Page 4
GMAT AWA PRACTICE PAPER 3
Question: 1
The following appeared in the editorial section of a local newspaper:
“Commuter use of the new subway train is exceeding the transit company’s projections.
However, commuter use of the shuttle buses that transport people to the subway stations is
below the projected volume. If the transit company expects commuters to ride the shuttle buses
to the subway rather than drive there, it must either reduce the shuttle bus fares or increase the
price of parking at the subway stations.”
Discuss how well reasoned . . . etc.
Question: 2
The following was excerpted from the speech of a spokesperson for Synthetic Farm Products,
Inc.:
“Many farmers who invested in the equipment needed to make the switch from synthetic to
organic fertilizers and pesticides feel that it would be too expensive to resume synthetic farming
at this point. But studies of farmers who switched to organic farming last year indicate that their
current crop yields are lower. Hence their purchase of organic farming equipment, a relatively
minor investment compared to the losses that would result from continued lower crop yields,
cannot justify persisting on an unwise course. And the choice to farm organically is financially
unwise, given that it was motivated by environmental rather than economic concerns.”
Discuss how well reasoned . . . etc
Question: 3
The following appeared in a newspaper story giving advice about investments:
“As overall life expectancy continues to rise, the population of our country is growing
increasingly older. For example, more than 20 percent of the residents of one of our more
populated regions are now at least 65 years old, and occupancy rates at resort hotels in that
region declined significantly during the past six months. Because of these two related trends, a
prudent investor would be well advised to sell interest in hotels and invest in hospitals and
nursing homes instead.”
Discuss how well reasoned . . . etc.
Question: 4
The following appeared as part of the business plan of an investment and financial consulting
firm:
“Studies suggest that an average coffee drinker’s consumption of coffee increases with age, from
age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola
drinker’s consumption of cola, however, declines with increasing age. Both of these trends have
remained stable for the past 40 years. Given that the number of older adults will significantly
increase as the population ages over the next 20 years, it follows that the demand for coffee will
increase and the demand for cola will decrease during this period. We should, therefore,
consider transferring our investments from Cola Loca to Early Bird Coffee.”
Discuss how well reasoned . . . etc.
Question: 5
The following appeared in the editorial section of a West Cambria newspaper:
“A recent review of the West Cambria volunteer ambulance service revealed a longer average
response time to accidents than was reported by a commercial ambulance squad located in East
Cambria. In order to provide better patient care for accident victims and to raise revenue for our
town by collecting service fees for ambulance use, we should disband our volunteer service and
hire a commercial ambulance service.”
Discuss how well reasoned . . . etc.
Question: 6
The following is part of a business plan being discussed at a board meeting of the Perks
Company:
“It is no longer cost-effective for the Perks Company to continue offering its employees a
generous package of benefits and incentives year after year. In periods when national
unemployment rates are low, Perks may need to offer such a package in order to attract and keep
good employees, but since national unemployment rates are now high, Perks does not need to
offer the same benefits and incentives. The money thus saved could be better used to replace the
existing plant machinery with more technologically sophisticated equipment, or even to build an
additional plant.”
Discuss how well reasoned . . . etc.
Question: 7
The following appeared in an editorial from a magazine produced by an organization dedicated
to environmental protection:
“In order to effectively reduce the amount of environmental damage that industrial
manufacturing plants cause, those who manage the plants must be aware of the specific amount
and types of damage caused by each of their various manufacturing processes. However, few
corporations have enough financial incentive to monitor this information. In order to guarantee
that corporations reduce the damage caused by their plants, the federal government should
require every corporation to produce detailed annual reports on the environmental impact of their
manufacturing process, and the government should impose stiff financial penalties for failure to
produce these reports.”
Discuss how well reasoned . . .etc.
Question: 8
The following appeared as part of a plan proposed by an executive of the Easy Credit Company
to the president:
“The Easy Credit Company would gain an advantage over competing credit card services if we
were to donate a portion of the proceeds from the use of our cards to a well-known
environmental organization in exchange for the use of its symbol or logo on our card. Since a
recent poll shows that a large percentage of the public is concerned about environmental issues,
this policy would attract new customers, increase use among existing customers, and enable us
to charge interest rates that are higher than the lowest ones available.”
Discuss how well reasoned . . . etc.
Question: 9
The following appeared as part of a recommendation from the financial planning office to the
administration of Fern Valley University:
“In the past few years, Fern Valley University has suffered from a decline in both enrollments
and admissions applications. The reason can be discovered from our students, who most often
cite poor teaching and inadequate library resources as their chief sources of dissatisfaction with
Fern Valley. Therefore, in order to increase the number of students attending our university, and
hence to regain our position as the most prestigious university in the greater Fern Valley
metropolitan area, it is necessary to initiate a fund-raising campaign among the alumni that will
enable us to expand the range of subjects we teach and to increase the size of our library
facilities.”
Discuss how well reasoned . . . etc.
Question: 10
The following appeared in an article in a college departmental newsletter:
“Professor Taylor of Jones University is promoting a model of foreign language instruction in
which students receive 10 weeks of intensive training, then go abroad to live with families for
10 weeks. The superiority of the model, Professor Taylor contends, is proved by the results of a
study in which foreign language tests given to students at 25 other colleges show that first-year
foreign language students at Jones speak more fluently after only 10 to 20 weeks in the program
than do nine out of 10 foreign language majors elsewhere at the time of their graduation.”
Discuss how well reasoned . . . etc.
Page 5
GMAT AWA PRACTICE PAPER 3
Question: 1
The following appeared in the editorial section of a local newspaper:
“Commuter use of the new subway train is exceeding the transit company’s projections.
However, commuter use of the shuttle buses that transport people to the subway stations is
below the projected volume. If the transit company expects commuters to ride the shuttle buses
to the subway rather than drive there, it must either reduce the shuttle bus fares or increase the
price of parking at the subway stations.”
Discuss how well reasoned . . . etc.
Question: 2
The following was excerpted from the speech of a spokesperson for Synthetic Farm Products,
Inc.:
“Many farmers who invested in the equipment needed to make the switch from synthetic to
organic fertilizers and pesticides feel that it would be too expensive to resume synthetic farming
at this point. But studies of farmers who switched to organic farming last year indicate that their
current crop yields are lower. Hence their purchase of organic farming equipment, a relatively
minor investment compared to the losses that would result from continued lower crop yields,
cannot justify persisting on an unwise course. And the choice to farm organically is financially
unwise, given that it was motivated by environmental rather than economic concerns.”
Discuss how well reasoned . . . etc
Question: 3
The following appeared in a newspaper story giving advice about investments:
“As overall life expectancy continues to rise, the population of our country is growing
increasingly older. For example, more than 20 percent of the residents of one of our more
populated regions are now at least 65 years old, and occupancy rates at resort hotels in that
region declined significantly during the past six months. Because of these two related trends, a
prudent investor would be well advised to sell interest in hotels and invest in hospitals and
nursing homes instead.”
Discuss how well reasoned . . . etc.
Question: 4
The following appeared as part of the business plan of an investment and financial consulting
firm:
“Studies suggest that an average coffee drinker’s consumption of coffee increases with age, from
age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola
drinker’s consumption of cola, however, declines with increasing age. Both of these trends have
remained stable for the past 40 years. Given that the number of older adults will significantly
increase as the population ages over the next 20 years, it follows that the demand for coffee will
increase and the demand for cola will decrease during this period. We should, therefore,
consider transferring our investments from Cola Loca to Early Bird Coffee.”
Discuss how well reasoned . . . etc.
Question: 5
The following appeared in the editorial section of a West Cambria newspaper:
“A recent review of the West Cambria volunteer ambulance service revealed a longer average
response time to accidents than was reported by a commercial ambulance squad located in East
Cambria. In order to provide better patient care for accident victims and to raise revenue for our
town by collecting service fees for ambulance use, we should disband our volunteer service and
hire a commercial ambulance service.”
Discuss how well reasoned . . . etc.
Question: 6
The following is part of a business plan being discussed at a board meeting of the Perks
Company:
“It is no longer cost-effective for the Perks Company to continue offering its employees a
generous package of benefits and incentives year after year. In periods when national
unemployment rates are low, Perks may need to offer such a package in order to attract and keep
good employees, but since national unemployment rates are now high, Perks does not need to
offer the same benefits and incentives. The money thus saved could be better used to replace the
existing plant machinery with more technologically sophisticated equipment, or even to build an
additional plant.”
Discuss how well reasoned . . . etc.
Question: 7
The following appeared in an editorial from a magazine produced by an organization dedicated
to environmental protection:
“In order to effectively reduce the amount of environmental damage that industrial
manufacturing plants cause, those who manage the plants must be aware of the specific amount
and types of damage caused by each of their various manufacturing processes. However, few
corporations have enough financial incentive to monitor this information. In order to guarantee
that corporations reduce the damage caused by their plants, the federal government should
require every corporation to produce detailed annual reports on the environmental impact of their
manufacturing process, and the government should impose stiff financial penalties for failure to
produce these reports.”
Discuss how well reasoned . . .etc.
Question: 8
The following appeared as part of a plan proposed by an executive of the Easy Credit Company
to the president:
“The Easy Credit Company would gain an advantage over competing credit card services if we
were to donate a portion of the proceeds from the use of our cards to a well-known
environmental organization in exchange for the use of its symbol or logo on our card. Since a
recent poll shows that a large percentage of the public is concerned about environmental issues,
this policy would attract new customers, increase use among existing customers, and enable us
to charge interest rates that are higher than the lowest ones available.”
Discuss how well reasoned . . . etc.
Question: 9
The following appeared as part of a recommendation from the financial planning office to the
administration of Fern Valley University:
“In the past few years, Fern Valley University has suffered from a decline in both enrollments
and admissions applications. The reason can be discovered from our students, who most often
cite poor teaching and inadequate library resources as their chief sources of dissatisfaction with
Fern Valley. Therefore, in order to increase the number of students attending our university, and
hence to regain our position as the most prestigious university in the greater Fern Valley
metropolitan area, it is necessary to initiate a fund-raising campaign among the alumni that will
enable us to expand the range of subjects we teach and to increase the size of our library
facilities.”
Discuss how well reasoned . . . etc.
Question: 10
The following appeared in an article in a college departmental newsletter:
“Professor Taylor of Jones University is promoting a model of foreign language instruction in
which students receive 10 weeks of intensive training, then go abroad to live with families for
10 weeks. The superiority of the model, Professor Taylor contends, is proved by the results of a
study in which foreign language tests given to students at 25 other colleges show that first-year
foreign language students at Jones speak more fluently after only 10 to 20 weeks in the program
than do nine out of 10 foreign language majors elsewhere at the time of their graduation.”
Discuss how well reasoned . . . etc.
Question: 11
The following appeared as part of an article in the business section of a local newspaper:
“Motorcycle X has been manufactured in the United States for more than 70 years. Although one
foreign company has copied the motorcycle and is selling it for less, the company has failed to
attract motorcycle X customers—some say because its product lacks the exceptionally loud
noise made by motorcycle X. But there must be some other explanation. After all, foreign cars
tend to be quieter than similar American-made cars, but they sell at least as well. Also,
television advertisements for motorcycle X highlight its durability and sleek lines, not its
noisiness, and the ads typically have voice-overs or rock music rather than engine-roar on the
sound track.”
Discuss how well reasoned . . . etc.
Question: 12
The following appeared in the editorial section of a campus newspaper:
“Because occupancy rates for campus housing fell during the last academic year, so did housing
revenues. To solve the problem, campus housing officials should reduce the number of available
housing units, thereby increasing the occupancy rates. Also, to keep students from choosing to
live off-campus, housing officials should lower the rents, thereby increasing demand.”
Discuss how well reasoned . . . etc.
Question: 13
The following appeared in an Avia Airlines departmental memorandum:
“On average, 9 out of every 1,000 passengers who traveled on Avia Airlines last year filed a
complaint about our baggage-handling procedures. This means that although some 1 percent of
our passengers were unhappy with those procedures, the overwhelming majority were quite
satisfied with them; thus it would appear that a review of the procedures is not important to our
goal of maintaining or increasing the number of Avia’s passengers.”
Discuss how well reasoned . . . etc.
Question: 14
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