GMAT-Verbal Section GMAT Notes | EduRev

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GMAT : GMAT-Verbal Section GMAT Notes | EduRev

 Page 1


Graduate Management Admission Test  (GMAT) 
 
In the verbal section you will have 75 minutes to answer 41 questions. 
 
11 of these questions are experimental and would not be counted towards your score. 
There is no way to identify which questions are experimental as they are mixed in 
randomly through out the section. 
 
This section includes three types of questions: sentence correction, critical reading, and 
reading comprehension. Sentence correction questions test your ability to spot 
grammatical mistakes. The Critical reasoning questions test your ability to understand 
and analyze arguments. And the reading comprehension tests your ability to find 
information in a long passage. 
One can calculate the exact answer for a math question but the credited answers for a 
verbal question seem very subjective and arbitrary. Here an answer choice is correct 
because it is better than other four answer choices. 
 
The basic approach: 
 
For sentence correction: 
 
- to identify a grammar problem or rule – Eliminate answer choices containing that 
error.  
- Compare the remaining answers,- choose the best answer. 
 
For Critical Reasoning : 
    
- Break the argument in conclusion, premise and assumptions, - state the answer 
in your words 
- Eliminate the answer choices that do not match with your answer. 
 
For reading Comprehension: 
 
- Read the passage quickly to get the main idea, read and decipher the question 
- Find the answer in the passage – write answer in your own words. 
- Eliminate the answer choices that do not match your answer. 
 
 
Best of luck  
Verbal Section 
 
This question presents a sentence, part of which or all of which is underlined. Beneath 
the sentence you will find five ways of rephrasing the underlined part. The first of these 
repeats the original; the other four are different. If you think the original is best, choose 
option A, else pick one of the others. 
 
1. John and Tim went to the bank and he made a deposit.  
A. he 
B. they  
C. it 
D. their 
Page 2


Graduate Management Admission Test  (GMAT) 
 
In the verbal section you will have 75 minutes to answer 41 questions. 
 
11 of these questions are experimental and would not be counted towards your score. 
There is no way to identify which questions are experimental as they are mixed in 
randomly through out the section. 
 
This section includes three types of questions: sentence correction, critical reading, and 
reading comprehension. Sentence correction questions test your ability to spot 
grammatical mistakes. The Critical reasoning questions test your ability to understand 
and analyze arguments. And the reading comprehension tests your ability to find 
information in a long passage. 
One can calculate the exact answer for a math question but the credited answers for a 
verbal question seem very subjective and arbitrary. Here an answer choice is correct 
because it is better than other four answer choices. 
 
The basic approach: 
 
For sentence correction: 
 
- to identify a grammar problem or rule – Eliminate answer choices containing that 
error.  
- Compare the remaining answers,- choose the best answer. 
 
For Critical Reasoning : 
    
- Break the argument in conclusion, premise and assumptions, - state the answer 
in your words 
- Eliminate the answer choices that do not match with your answer. 
 
For reading Comprehension: 
 
- Read the passage quickly to get the main idea, read and decipher the question 
- Find the answer in the passage – write answer in your own words. 
- Eliminate the answer choices that do not match your answer. 
 
 
Best of luck  
Verbal Section 
 
This question presents a sentence, part of which or all of which is underlined. Beneath 
the sentence you will find five ways of rephrasing the underlined part. The first of these 
repeats the original; the other four are different. If you think the original is best, choose 
option A, else pick one of the others. 
 
1. John and Tim went to the bank and he made a deposit.  
A. he 
B. they  
C. it 
D. their 
E. you 
 
2. Although the average Girl Scout joins the organization at age 14, they have 
already been Brownies for several years. 
A. they have already been Brownies 
B. they were Brownies 
C. she has already been a Brownie 
D. she had already been a Brownie 
E. she was in the Brownies 
 
3. In 1980, the Netherlands agreed to limit fishing in certain Atlantic Ocean beds, 
but in 1981, they terminated the agreement. 
A. they terminated the agreement. 
B. they decided to terminate the agreement. 
C. it terminated the agreement. 
D. it was terminated. 
E. it decided the agreement was terminated. 
 
4. While brokers, as a rule, are not permitted to know executive access codes, in 
many instances they are widely known. 
A. they are widely known 
B. they are widely known to be 
C. they are widely known by many 
D. the codes are able to be widely known 
E. the codes are widely known 
 
5. Despite seeming tame and intelligent, the state troopers had no choice but to shoot 
the loose Gorilla. 
 A. Despite seeming tame and intelligent 
 B. Despite a tame and intelligent appearance 
 C. Although appearing to be tame and intelligent 
 D. Although it seemed tame and intelligent 
 E. However tame and intelligent in appearance 
 
 
6 . The number of workers have increased steadily each year. 
A. have increased steadily 
B. steadily have increased 
C. have been increasing steadily 
D. has increased steadily 
E. has steadily been going through an increase 
 
7. The commercial airliner flew too close to the military base, an act that the army 
saw as a violation of its air space. 
 
A.as 
B. as if it was 
C. to be 
D. that it was 
E. for 
 
Page 3


Graduate Management Admission Test  (GMAT) 
 
In the verbal section you will have 75 minutes to answer 41 questions. 
 
11 of these questions are experimental and would not be counted towards your score. 
There is no way to identify which questions are experimental as they are mixed in 
randomly through out the section. 
 
This section includes three types of questions: sentence correction, critical reading, and 
reading comprehension. Sentence correction questions test your ability to spot 
grammatical mistakes. The Critical reasoning questions test your ability to understand 
and analyze arguments. And the reading comprehension tests your ability to find 
information in a long passage. 
One can calculate the exact answer for a math question but the credited answers for a 
verbal question seem very subjective and arbitrary. Here an answer choice is correct 
because it is better than other four answer choices. 
 
The basic approach: 
 
For sentence correction: 
 
- to identify a grammar problem or rule – Eliminate answer choices containing that 
error.  
- Compare the remaining answers,- choose the best answer. 
 
For Critical Reasoning : 
    
- Break the argument in conclusion, premise and assumptions, - state the answer 
in your words 
- Eliminate the answer choices that do not match with your answer. 
 
For reading Comprehension: 
 
- Read the passage quickly to get the main idea, read and decipher the question 
- Find the answer in the passage – write answer in your own words. 
- Eliminate the answer choices that do not match your answer. 
 
 
Best of luck  
Verbal Section 
 
This question presents a sentence, part of which or all of which is underlined. Beneath 
the sentence you will find five ways of rephrasing the underlined part. The first of these 
repeats the original; the other four are different. If you think the original is best, choose 
option A, else pick one of the others. 
 
1. John and Tim went to the bank and he made a deposit.  
A. he 
B. they  
C. it 
D. their 
E. you 
 
2. Although the average Girl Scout joins the organization at age 14, they have 
already been Brownies for several years. 
A. they have already been Brownies 
B. they were Brownies 
C. she has already been a Brownie 
D. she had already been a Brownie 
E. she was in the Brownies 
 
3. In 1980, the Netherlands agreed to limit fishing in certain Atlantic Ocean beds, 
but in 1981, they terminated the agreement. 
A. they terminated the agreement. 
B. they decided to terminate the agreement. 
C. it terminated the agreement. 
D. it was terminated. 
E. it decided the agreement was terminated. 
 
4. While brokers, as a rule, are not permitted to know executive access codes, in 
many instances they are widely known. 
A. they are widely known 
B. they are widely known to be 
C. they are widely known by many 
D. the codes are able to be widely known 
E. the codes are widely known 
 
5. Despite seeming tame and intelligent, the state troopers had no choice but to shoot 
the loose Gorilla. 
 A. Despite seeming tame and intelligent 
 B. Despite a tame and intelligent appearance 
 C. Although appearing to be tame and intelligent 
 D. Although it seemed tame and intelligent 
 E. However tame and intelligent in appearance 
 
 
6 . The number of workers have increased steadily each year. 
A. have increased steadily 
B. steadily have increased 
C. have been increasing steadily 
D. has increased steadily 
E. has steadily been going through an increase 
 
7. The commercial airliner flew too close to the military base, an act that the army 
saw as a violation of its air space. 
 
A.as 
B. as if it was 
C. to be 
D. that it was 
E. for 
 
 
 
The questions in this group are based on the content of a passage. After reading 
the passage, choose the best answer to each question. Answer all questions 
following the passage on the basis of what is stated or implied in the passage.  
 
8. For the past five years, US consumption of eggs has decreased. The National 
Egg Council plans to reverse this trend by launching an advertising campaign 
extolling the healthful benefits of eggs.  
  
 Which one of the following, if true, will provide the strongest support for the 
 National Egg Council’s plan? 
 
A. Eggs are a good source of protein. 
B. Many former egg eaters now make omelets using egg 
substitutes. 
C. Most people stopped eating eggs because they thought eggs 
were unhealthy. 
D. Eggs contain unhealthy levels of cholesterol. 
E. Eggs substitute makers launched an extensive marketing 
campaign six years ago. 
 
9. In an effort to reduce the amount of fat and the number of calories that they 
consume, many citizens of the United States are making significant changes in 
their diets. For them staying in shape and looking fit now take precedence over 
eating foods that are filling and that taste good. It is likely that if they maintain 
these new priorities with consistent regard for other health issues, the length and 
quality of their lives will increase significantly.  
 
Which one of the following is an assumption upon which the argument is based? 
 
A. Eating foods that are filling and tastes good is inconsistent with 
staying in shape and looking fit. 
B. Controlling the quality of one’s life requires more than mere 
dietary adjustments. 
C. A combination of diet and exercise is necessary if one wishes to 
stay in shape and look fit. 
D. Many citizens of the United States have only recently discovered 
the importance of diet to living a longer, healthier life. 
E. Staying in shape and looking good are current goals for most 
citizens of the United States. 
 
10.  Singing in the Rain Umbrella Corp. plans to institute a marketing campaign in 
which it sells umbrellas at the exits of subway stations during rainy weather. The 
umbrellas will be sold at a price that is slightly higher than normal. The company 
thinks the sales of these higher – priced umbrellas will be greater than normal 
sales of umbrellas, because the purchasers of these umbrellas will be forced to 
buy them if they do not want to get wet.  
 
The author assumes which of the following about the purchasers of the umbrellas 
in predicting the sales of the umbrellas? 
Page 4


Graduate Management Admission Test  (GMAT) 
 
In the verbal section you will have 75 minutes to answer 41 questions. 
 
11 of these questions are experimental and would not be counted towards your score. 
There is no way to identify which questions are experimental as they are mixed in 
randomly through out the section. 
 
This section includes three types of questions: sentence correction, critical reading, and 
reading comprehension. Sentence correction questions test your ability to spot 
grammatical mistakes. The Critical reasoning questions test your ability to understand 
and analyze arguments. And the reading comprehension tests your ability to find 
information in a long passage. 
One can calculate the exact answer for a math question but the credited answers for a 
verbal question seem very subjective and arbitrary. Here an answer choice is correct 
because it is better than other four answer choices. 
 
The basic approach: 
 
For sentence correction: 
 
- to identify a grammar problem or rule – Eliminate answer choices containing that 
error.  
- Compare the remaining answers,- choose the best answer. 
 
For Critical Reasoning : 
    
- Break the argument in conclusion, premise and assumptions, - state the answer 
in your words 
- Eliminate the answer choices that do not match with your answer. 
 
For reading Comprehension: 
 
- Read the passage quickly to get the main idea, read and decipher the question 
- Find the answer in the passage – write answer in your own words. 
- Eliminate the answer choices that do not match your answer. 
 
 
Best of luck  
Verbal Section 
 
This question presents a sentence, part of which or all of which is underlined. Beneath 
the sentence you will find five ways of rephrasing the underlined part. The first of these 
repeats the original; the other four are different. If you think the original is best, choose 
option A, else pick one of the others. 
 
1. John and Tim went to the bank and he made a deposit.  
A. he 
B. they  
C. it 
D. their 
E. you 
 
2. Although the average Girl Scout joins the organization at age 14, they have 
already been Brownies for several years. 
A. they have already been Brownies 
B. they were Brownies 
C. she has already been a Brownie 
D. she had already been a Brownie 
E. she was in the Brownies 
 
3. In 1980, the Netherlands agreed to limit fishing in certain Atlantic Ocean beds, 
but in 1981, they terminated the agreement. 
A. they terminated the agreement. 
B. they decided to terminate the agreement. 
C. it terminated the agreement. 
D. it was terminated. 
E. it decided the agreement was terminated. 
 
4. While brokers, as a rule, are not permitted to know executive access codes, in 
many instances they are widely known. 
A. they are widely known 
B. they are widely known to be 
C. they are widely known by many 
D. the codes are able to be widely known 
E. the codes are widely known 
 
5. Despite seeming tame and intelligent, the state troopers had no choice but to shoot 
the loose Gorilla. 
 A. Despite seeming tame and intelligent 
 B. Despite a tame and intelligent appearance 
 C. Although appearing to be tame and intelligent 
 D. Although it seemed tame and intelligent 
 E. However tame and intelligent in appearance 
 
 
6 . The number of workers have increased steadily each year. 
A. have increased steadily 
B. steadily have increased 
C. have been increasing steadily 
D. has increased steadily 
E. has steadily been going through an increase 
 
7. The commercial airliner flew too close to the military base, an act that the army 
saw as a violation of its air space. 
 
A.as 
B. as if it was 
C. to be 
D. that it was 
E. for 
 
 
 
The questions in this group are based on the content of a passage. After reading 
the passage, choose the best answer to each question. Answer all questions 
following the passage on the basis of what is stated or implied in the passage.  
 
8. For the past five years, US consumption of eggs has decreased. The National 
Egg Council plans to reverse this trend by launching an advertising campaign 
extolling the healthful benefits of eggs.  
  
 Which one of the following, if true, will provide the strongest support for the 
 National Egg Council’s plan? 
 
A. Eggs are a good source of protein. 
B. Many former egg eaters now make omelets using egg 
substitutes. 
C. Most people stopped eating eggs because they thought eggs 
were unhealthy. 
D. Eggs contain unhealthy levels of cholesterol. 
E. Eggs substitute makers launched an extensive marketing 
campaign six years ago. 
 
9. In an effort to reduce the amount of fat and the number of calories that they 
consume, many citizens of the United States are making significant changes in 
their diets. For them staying in shape and looking fit now take precedence over 
eating foods that are filling and that taste good. It is likely that if they maintain 
these new priorities with consistent regard for other health issues, the length and 
quality of their lives will increase significantly.  
 
Which one of the following is an assumption upon which the argument is based? 
 
A. Eating foods that are filling and tastes good is inconsistent with 
staying in shape and looking fit. 
B. Controlling the quality of one’s life requires more than mere 
dietary adjustments. 
C. A combination of diet and exercise is necessary if one wishes to 
stay in shape and look fit. 
D. Many citizens of the United States have only recently discovered 
the importance of diet to living a longer, healthier life. 
E. Staying in shape and looking good are current goals for most 
citizens of the United States. 
 
10.  Singing in the Rain Umbrella Corp. plans to institute a marketing campaign in 
which it sells umbrellas at the exits of subway stations during rainy weather. The 
umbrellas will be sold at a price that is slightly higher than normal. The company 
thinks the sales of these higher – priced umbrellas will be greater than normal 
sales of umbrellas, because the purchasers of these umbrellas will be forced to 
buy them if they do not want to get wet.  
 
The author assumes which of the following about the purchasers of the umbrellas 
in predicting the sales of the umbrellas? 
 
A. Customers who do not feel immediate pressure to purchase will 
not do so. 
B. Normally priced umbrellas are not profitable for singing in the 
Rain Umbrellas Corp. 
C. Very few people buy Singing in the Rain’s normally priced 
umbrellas. 
D. Singing in the Rain Umbrellas Corp. will have to stop selling 
normally priced umbrellas when it starts selling higher priced 
umbrellas. 
E. Most potential customers of Singing in the Rain’s higher priced 
umbrellas will not have acquired an umbrella previously. 
 
11. A leading cement manufacture has been having problems processing manufacturing 
and delivery records since it expanded its operations. To solve this problem it plans to 
install a new platform on its central computing system which will run its tracking program 
five times faster than the current system does. 
 
Which one of the following castes the most serious doubt on the manufacture’s 
plan? 
 
A. Not all computer platforms can make the company’s tracking programs 
run more quickly 
B. The cost of the new computer platform will require the cement 
manufacture to raise prices for its products. 
C. The cement company’s computer system does not have the capability to 
run the new platform and cannot be updated.  
D. The company has been increasing the sales of cement by 1.5 percent a 
month for the past 18 months. 
E. A completely new computer system could make the program run 6 times 
faster than it does currently. 
 
 
 
 
12. Critics insist that government regulation of business has made it more difficult for 
American businesses to operate profitably and has destroyed their ability to compete 
with foreign producers of consumer goods. This argument is not compelling. 
Government regulation of business was never as active in this nation as it was between 
the years 1975 and 1985, and in those years the average net worth of American family 
increased more than it had in any previous decade. 
 
The author’s argument would be most seriously weakened if it were true that 
 
A. 80 percent of all businesses started during the decade 1975-1985 lost 
money in their first year. 
B. More businesses declared bankruptcy during the period 1975-1985 than 
in any previous decade. 
C. During the decade 1975-1985, America imported more consumer goods 
than it exported. 
Page 5


Graduate Management Admission Test  (GMAT) 
 
In the verbal section you will have 75 minutes to answer 41 questions. 
 
11 of these questions are experimental and would not be counted towards your score. 
There is no way to identify which questions are experimental as they are mixed in 
randomly through out the section. 
 
This section includes three types of questions: sentence correction, critical reading, and 
reading comprehension. Sentence correction questions test your ability to spot 
grammatical mistakes. The Critical reasoning questions test your ability to understand 
and analyze arguments. And the reading comprehension tests your ability to find 
information in a long passage. 
One can calculate the exact answer for a math question but the credited answers for a 
verbal question seem very subjective and arbitrary. Here an answer choice is correct 
because it is better than other four answer choices. 
 
The basic approach: 
 
For sentence correction: 
 
- to identify a grammar problem or rule – Eliminate answer choices containing that 
error.  
- Compare the remaining answers,- choose the best answer. 
 
For Critical Reasoning : 
    
- Break the argument in conclusion, premise and assumptions, - state the answer 
in your words 
- Eliminate the answer choices that do not match with your answer. 
 
For reading Comprehension: 
 
- Read the passage quickly to get the main idea, read and decipher the question 
- Find the answer in the passage – write answer in your own words. 
- Eliminate the answer choices that do not match your answer. 
 
 
Best of luck  
Verbal Section 
 
This question presents a sentence, part of which or all of which is underlined. Beneath 
the sentence you will find five ways of rephrasing the underlined part. The first of these 
repeats the original; the other four are different. If you think the original is best, choose 
option A, else pick one of the others. 
 
1. John and Tim went to the bank and he made a deposit.  
A. he 
B. they  
C. it 
D. their 
E. you 
 
2. Although the average Girl Scout joins the organization at age 14, they have 
already been Brownies for several years. 
A. they have already been Brownies 
B. they were Brownies 
C. she has already been a Brownie 
D. she had already been a Brownie 
E. she was in the Brownies 
 
3. In 1980, the Netherlands agreed to limit fishing in certain Atlantic Ocean beds, 
but in 1981, they terminated the agreement. 
A. they terminated the agreement. 
B. they decided to terminate the agreement. 
C. it terminated the agreement. 
D. it was terminated. 
E. it decided the agreement was terminated. 
 
4. While brokers, as a rule, are not permitted to know executive access codes, in 
many instances they are widely known. 
A. they are widely known 
B. they are widely known to be 
C. they are widely known by many 
D. the codes are able to be widely known 
E. the codes are widely known 
 
5. Despite seeming tame and intelligent, the state troopers had no choice but to shoot 
the loose Gorilla. 
 A. Despite seeming tame and intelligent 
 B. Despite a tame and intelligent appearance 
 C. Although appearing to be tame and intelligent 
 D. Although it seemed tame and intelligent 
 E. However tame and intelligent in appearance 
 
 
6 . The number of workers have increased steadily each year. 
A. have increased steadily 
B. steadily have increased 
C. have been increasing steadily 
D. has increased steadily 
E. has steadily been going through an increase 
 
7. The commercial airliner flew too close to the military base, an act that the army 
saw as a violation of its air space. 
 
A.as 
B. as if it was 
C. to be 
D. that it was 
E. for 
 
 
 
The questions in this group are based on the content of a passage. After reading 
the passage, choose the best answer to each question. Answer all questions 
following the passage on the basis of what is stated or implied in the passage.  
 
8. For the past five years, US consumption of eggs has decreased. The National 
Egg Council plans to reverse this trend by launching an advertising campaign 
extolling the healthful benefits of eggs.  
  
 Which one of the following, if true, will provide the strongest support for the 
 National Egg Council’s plan? 
 
A. Eggs are a good source of protein. 
B. Many former egg eaters now make omelets using egg 
substitutes. 
C. Most people stopped eating eggs because they thought eggs 
were unhealthy. 
D. Eggs contain unhealthy levels of cholesterol. 
E. Eggs substitute makers launched an extensive marketing 
campaign six years ago. 
 
9. In an effort to reduce the amount of fat and the number of calories that they 
consume, many citizens of the United States are making significant changes in 
their diets. For them staying in shape and looking fit now take precedence over 
eating foods that are filling and that taste good. It is likely that if they maintain 
these new priorities with consistent regard for other health issues, the length and 
quality of their lives will increase significantly.  
 
Which one of the following is an assumption upon which the argument is based? 
 
A. Eating foods that are filling and tastes good is inconsistent with 
staying in shape and looking fit. 
B. Controlling the quality of one’s life requires more than mere 
dietary adjustments. 
C. A combination of diet and exercise is necessary if one wishes to 
stay in shape and look fit. 
D. Many citizens of the United States have only recently discovered 
the importance of diet to living a longer, healthier life. 
E. Staying in shape and looking good are current goals for most 
citizens of the United States. 
 
10.  Singing in the Rain Umbrella Corp. plans to institute a marketing campaign in 
which it sells umbrellas at the exits of subway stations during rainy weather. The 
umbrellas will be sold at a price that is slightly higher than normal. The company 
thinks the sales of these higher – priced umbrellas will be greater than normal 
sales of umbrellas, because the purchasers of these umbrellas will be forced to 
buy them if they do not want to get wet.  
 
The author assumes which of the following about the purchasers of the umbrellas 
in predicting the sales of the umbrellas? 
 
A. Customers who do not feel immediate pressure to purchase will 
not do so. 
B. Normally priced umbrellas are not profitable for singing in the 
Rain Umbrellas Corp. 
C. Very few people buy Singing in the Rain’s normally priced 
umbrellas. 
D. Singing in the Rain Umbrellas Corp. will have to stop selling 
normally priced umbrellas when it starts selling higher priced 
umbrellas. 
E. Most potential customers of Singing in the Rain’s higher priced 
umbrellas will not have acquired an umbrella previously. 
 
11. A leading cement manufacture has been having problems processing manufacturing 
and delivery records since it expanded its operations. To solve this problem it plans to 
install a new platform on its central computing system which will run its tracking program 
five times faster than the current system does. 
 
Which one of the following castes the most serious doubt on the manufacture’s 
plan? 
 
A. Not all computer platforms can make the company’s tracking programs 
run more quickly 
B. The cost of the new computer platform will require the cement 
manufacture to raise prices for its products. 
C. The cement company’s computer system does not have the capability to 
run the new platform and cannot be updated.  
D. The company has been increasing the sales of cement by 1.5 percent a 
month for the past 18 months. 
E. A completely new computer system could make the program run 6 times 
faster than it does currently. 
 
 
 
 
12. Critics insist that government regulation of business has made it more difficult for 
American businesses to operate profitably and has destroyed their ability to compete 
with foreign producers of consumer goods. This argument is not compelling. 
Government regulation of business was never as active in this nation as it was between 
the years 1975 and 1985, and in those years the average net worth of American family 
increased more than it had in any previous decade. 
 
The author’s argument would be most seriously weakened if it were true that 
 
A. 80 percent of all businesses started during the decade 1975-1985 lost 
money in their first year. 
B. More businesses declared bankruptcy during the period 1975-1985 than 
in any previous decade. 
C. During the decade 1975-1985, America imported more consumer goods 
than it exported. 
D. The increase in net worth of average American families during the years 
1975-1985 was largely due to an increase in the value of residential 
homes. 
E. The average interest rate charged on business and home mortgage loans 
was higher during the decade 1975-1985 than it had been in any previous 
decade. 
 
 
13. A recession is not caused by any economic force other than nation wide loss of 
confidence. If the economy is perceived as being unstable, banks are 
conservative in lending money, investors take fewer risks and hence economic 
growth is slowed. 
 
Which of the following, if true, would most strengthen the argument above. 
 
A. A recession is getting effected by the response of the Federal Reserve’s 
setting of interest rates. 
B. A recession can be brought on by the failure of a major bank that had been 
loaning money. 
C. Slowed economic growth is not the only result of a recession. 
D. When investors begin taking greater risks it is enough to stimulate economic 
growth. 
E. It is a fallacy to assume that economic growth is necessary for economic 
stability. 
 
 
14. In an effort to increase revenues, Sky Air recently partnered with several airlines 
to create a joint frequent-flier program. In the new program, miles earned on all 
partner airlines can be combined for reward tickets valid on any airline in the 
partnership. Sky Air’s CEO cites a recent increase in the number of passengers 
on all the partner airlines as evidence that the new frequent-flier program is 
having the desired effect. Industry analysts doubt the CEO’s claim. 
 
Which of the following, if true, best supports the analysts’ positions? 
 
A. Air travel tends to be seasonal, with more passengers traveling during 
warmer months and holiday periods. 
B. The recent increase in passenger rates for all the partner airlines was 
predicted by the lowest rates of air travel in the last decade. 
C. Many travelers achieved reward tickets more quickly under the new 
frequent-flier program and redeemed them recently for free travel. 
D. Travelers redeemed frequent-flier rewards on Sky Air’s partners more 
frequently than on Sky Air. 
E. A study of frequent-flier programs showed that they generally result in 
increased long-term airline revenues. 
 
 
 
 
 
 
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