Practice Questions for Assumption Questions | Verbal for GMAT PDF Download

Q1: Apartment building owners argue that rent control should be abolished. Although they acknowledge that, in the short term, rents would increase, they argue that the long-term effect would be a reduction in rents. This is because rent increases would lead to greater profitability. Higher profits would lead to increased apartment construction. Increased apartment construction would then lead to a greater supply of residences, and lower prices would result because potential apartment residents would have a better selection. Thus, abolishing rent control would ultimately reduce prices.
(a) Current residents of rent-controlled apartments would be able to find new apartments once their rents increased.
(b) The fundamental value of any society is to house its citizens.
(c) Only current apartment owners would profit significantly from market deregulation.
(d) New apartment construction will generate a great number of jobs.
(e) The increase in the number of apartments available would exceed the number of new potential apartment residents.
Ans: (e)

(e) is the only choice that isn’t outside the scope of the argument: price of rents. So, we can choose it without even seeing a question stem. The argument revolves around a supply/demand dynamic in housing, so the answer should as well.
(a) is incorrect because current residents aren’t related to the issue in the argument. (b) and (c) go afield into areas that aren’t related, such as societal ethics. The issue of jobs isn’t mentioned either, which rules out (d). (e) is the only choice directly germane to the paragraph.

Q2: Bank depositors in the United States are all financially protected against bank failure because the government insures all individuals' bank deposits. An economist argues that this insurance is partly responsible for the high rate of bank failures, since it removes from depositors any financial incentive to find out whether the bank that holds their money is secure against failure. If depositors were more selective, then banks would need to be financially stable in order to compete for depositors' money.

The economist's argument makes which of the following assumptions?
(a) Bank failures are caused when big borrowers default on loan repayments.
(b) A significant proportion of depositors maintain accounts at several different banks.
(c) The more a depositor has to deposit, the more careful he or she tends to be in selecting a bank.
(d) The difference in the interest rates paid to depositors by different banks is not a significant factor in bank failures.
(e) Potential depositors are able to determine which banks are financially secure against failure.
Ans: (e)
The correct answer is (e). It is a fairly straightforward question and the wrong answers are easy to eliminate.

Q3: Bank depositaries in the US are all financially protected against bank failure because the government insures all individual's bank deposits. An economist argues that this insurance is partly responsibly for the high rate of bank failures, since it removes from depositors any financial incentive to find out where the bank that holds heir money is secure against failure. If depositors were more selective, then banks would need to be financially secure in order to compete for depositor's money.
Which of the following, if true, most seriously weakens the economist's argument?
(a) Before the government started to insure depositors against bank failure, there was a lower rate of bank failure than there is now.
(b) When the government did not insure deposits, frequent banks failures occurred as result of depositor's fears or losing money in bank failures.
(c) Surveys show that a significant proportion of depositors are aware that their deposits are insured by the government.
(d) There is an upper limit on the amount of an individual's deposit that the government will insure, but very few individuals' deposits exceed this limit.
(e) The financial security of a bank against failure depends on the percentage of its assets that are loaned out and also on how much risk its loan involve.
Ans: (e)
(e) is a tempting answer because it suggests that insurance is not the main factor in the fight against bank failure. The correct answer is (b); when there were no deposits insured then there were no bank failures.

Q4: Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.
Which of the following, if true, proved the strongest evidence that the magazine's profits are likely to decline if the plan is instituted?
(a) with the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
(b) The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible loss of the current high quality of it's articles.
(c) Many of them magazine's long-time subscribers would continue their subscriptions even if the subscription price were increase.
(d) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
(e) Production costs for the magazine are expected to remain stable.
Ans: (d)
This is a weakening question. It talks about a plan and we are looking for an answer that will assume that the plan will not work. (a) is not correct because it will not make the magazine's profits decline. (c) is a strengthener answer. The correct answer is (d) because it will cause the profits to decline. 

Q5: A study of marital relationships in which one partner's sleeping and waking cycles differ from those of the other partner reveals that such couples share fewer activities with each other and have more violent arguments than do couples in a relationship in which both partners follow the same sleeping and waking patterns. Thus, mismatched sleeping and waking cycles can seriously jeopardize a marriage.
Which of the following, if true, most seriously weakens the argument above?
(a) married couples in which both spouses follow the same sleeping and waking patterns also occasionally have arguments that can jeopardize the couple's marriage.
(b) The sleeping and waking cycles of individuals tend to vary from season to season.
(c) The individuals who have sleeping and waking cycles that differ significantly from those of their spouses tend to argue little with colleagues at work.
(d) People in unhappy marriages have been found to express hostility by adopting a different sleeping and waking cycle that from that of their spouses.
(e) According to a recent study,. Most people's sleeping and waking cycles can be controlled and modified easily.
Ans: (d)
We are looking for a weakener to the argument. The correct answer is (d) since it argues that the reasons for having different sleeping and waking cycles for a couple could be their unhappiness to begin with, which is the opposite of what the statement in the questions.

Q6: Landline telephone sales are declining and will no longer exist in a few decades. This is because almost everyone has cellular service or is able to rely on computer systems for their personal needs. Even in workplaces, landlines are becoming obsolete. 
The argument depends on which of the following?
(a) Pre-installed landlines will be eliminated. 
(b) Landlines will no longer be necessary for any reason aside from personal or business communication. 
(c) Workplaces are the only realm in which landlines are used. 
(d) Personal landlines no longer exist. 
(e) Landline sales have been declining for several years now. 
Ans: (b)
The argument is based on the premise that landlines are either used for personal or business uses, and that no third use exists for them. Therefore, in order for the argument to hold water, there is an assumption that: Landlines will no longer be necessary for any reason aside from personal or business communication.

Q7: Traditional print journalism is dying. The proliferation of online and cable news sources makes it easy for readers to bypass newspapers and magazines. Since most publications generate advertising revenue based on their circulation, this decline in readership will be fatal to the print journalism industry.
The argument depends on which of the following assumptions?
(a) Advertising revenue can be supplemented by other sources of revenue.
(b) Traditional publications are better than cable and online news sources.
(c) Newspapers and magazines have no other sources of revenue available to them.
(d) Cable and online news sources are better than traditional publications.
(e) The First Amendment protects freedom of the press, which will ensure the continued survival of print journalism.
Ans: (c)
The argument assumes that declining readership, which leads to declining advertising revenue, makes it financially impossible for newspapers and magazines to survive. This can only be true if there are no other sources of revenue to offset these losses. Arguments about which news source is better are irrelevant since the author does not address the issue of quality. Similarly, the First Amendment argument is irrelevant since freedom of the press deals with political expression rather than business viability, which is the author’s main concern.

Q8: The Flerenchian government deicded to limit the import of chocolate from the four countries which export the greatest amount of chocolate to Flerenchia. An analyst hired by the government maintains that in the near future this will cause a large increase in domestic sales of chocolate produced in Flerenchia.
Which of the following, if true, would most likely renders this prediction inaccurate?
(a) A new tax bill that would discourage foreign investment in the chocolate industry is being debated by the Flerenchian government.
(b) Flerenchian companies' orders for milk chocolates, which account for 60% of sales by chocolate companies, rose faster than for other types of chocolates during the past year.
(c) Worldwide order for chocolate made in Flerenchia rose more than 15% during the past year.
(d) Substantial inventories of foreign-made chocolates were stockpiled in Flerenchia during the past year.
(e) Companies in the chocolate industries of many countries showed significantly increased demand for chocolate during the past year.
Ans: (d)
What the analyst is predicting is that there will be a large increase in domestic sales in the future. (b) is incorrect because it is out of the scope of the question. (a) is the most tempting wrong answer. There are two problems with (a): the tax bill is a 'maybe' and (a) talks about the medium term and we're looking to see what will happen over the long term. (d) is the correct answer. (e) is not true because it's a strengthener questions.

Q9: Our collective obsession with celebrities and entertainment news is ruining this country. As a nation, we face daunting political, economic, social and environmental problems that threaten our existence. Instead of dealing with these problems, we instead focus on the minute details of even the most minor celebrities. How can we prepare for the challenges of the future when we’re so obsessed with trivia of the present?
The argument depends on which of the following assumptions?
(a) The economic impact of the entertainment industry is minimal.
(b) All news about celebrities and entertainment is trivial.
(c) Current fears about political, economic, social and environmental problems are unfounded.
(d) Political, economic, social and environmental problems are just as important as celebrity news.
(e) It is impossible for our society to simultaneously address serious problems and fixate on celebrity gossip.
Ans: (e)
The argument assumes that spending too much time following celebrity/entertainment news is not just pointless, but dangerous. Claiming that serious, national problems and celebrity news are equally important is therefore incorrect since the author considers these problems to be more important. Similarly, the author clearly believes that these problems have some basis in fact, so the fears are not groundless. And while the author may agree that all news about celebrities and entertainment is trivial, this does not go far enough in addressing the danger about which the author warns. Finally, the economic impact of the entertainment industry is irrelevant to the issue of whether it distracts people from dealing with serious problems. Only the correct answer makes the connection between the prevalence of celebrity obsession and the danger it poses in the form of distraction.

Q10: The way we treat the most vulnerable members of our society reflects on our own level of moral development. The poor, the homeless, orphans, the mentally ill, prisoners and those afflicted with disease usually lack the political power to advocate on their own behalf. When we address their concerns and make them our own, that is when we show true nobility of spirit.
The argument depends on which of the following assumptions?
(a) Money and political power are inextricably linked.
(b) Some people are more deserving of help than others.
(c) People in difficult situations must learn to endure.
(d) Society will always be divided between the “haves” and the “have-nots.”
(e) Helping others equates to morality.
Ans:(e)
The argument assumes that there is a correlation between morality and helping the vulnerable since this is what the author is recommending to promote moral development. Although political and economic power are related, this observation lacks the essential component of morality. Likewise, the assertion that people undergoing hardship must learn to endure is true, but it also omits any reference to morality. Similarly, the answer noting the existence of “haves” and “have-nots” addresses the reason there are vulnerable members of society, but says nothing about the moral imperative of helping them. Finally, the author neither advocates nor implies that any criteria be applied to determine which members of society are most worthy of help.