Critical Reasoning section 1 MCQ Detailed Explanation And More Example

MOST IMPORTANT verbal reasoning - 4 EXERCISES

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Directions:

Attempt these questions based on the information given against each.

The following question based on Critical Reasoning topic of verbal reasoning

Questions : Cigarettes constitute a mere 20% of tobacco consumption in India. And fewer than 15% of the 200 million tobacco users consume cigarettes. Yet these 15% contribute nearly 90% of the tax revenues to the Exchequer from the tobacco sector. The punitive cigarette taxation regime has kept the tax base narrow, and reducing taxes will expand this base. Which one of the following best bolsters the conclusion that reducing duties will expand the tax base?

(a) The cigarette manufacturers' association has decided to indulge in aggressive promotion.

(b) The cigarette manufacturers are lobbying for reduction on duties.

(c) There is a likelihood that tobacco consumers will shift to cigarette smoking if cigarette prices were to reduce.

(d) An increase in duties on non-cigarette tobacco may lead to a shift in favour of cigarette smoking.

The correct answers to the above question in:

Answer: (a)

The tax base is narrow.
∵ the taxes are high, only those smoking expensive cigarettes pay taxes. It however taxes are reduced and cigarettes are cheaper more tobacco consumers will shift to cigarettes thus increasing the tax base.

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Read more question and answers set 1 Based Verbal Reasoning Questions and Answers

Question : 1

Argentina's beef cattle herd has dropped to under 50 million from 57 million ten years ago in 2004. The animals are worth less, too: prices fell by over a third last year, before recovering slightly . Most local meat packers and processors are in financial trouble, and recent years has seen a string of plant closures. The Beef producer's Association has now come up with a massive advertisement campaign calling upon Argentines to eat more beef-their "juicy, healthy, routed, platefilling steaks." Which one of the following , if true, would contribute most to a failure of the campaign?

a) There has been a change in consumer preference towards eating leaner meats like chicken and fish.

b) The inability to cross breed native cattle with improved varieties has not increased production to adequate levels.

c) Prices of imported beef have been increasing, thus making locally grown beef more competitive in terms of policy.

d) Animal rights pressure groups have come up rapidly, demanding better and humane treatment of farmyard animals like beef cattle

Answer: (b)

(b) contributes most to the failure of the campaign because if production is not raised to adequate levels, and if cross bred varieties are not successfully brought about, there would be a lesser number of people eating beef.

The passage mentions the drop in the cattle herd as the reason for this trouble. So if the drop continues the campaign will fail.

Question : 2

For our nation to compete successfully in the high technology enterprises of the future, workers with skills in maths and science will be needed. But it is doubtful that they will be available, since there is a shortage of high school maths and science teachers that shows no signs of improving. Industry can help alleviate this problem by funding scholarship grants and aid to college students who graduate in maths and science with the hope of pursuing teaching careers. Which of the following, if true, would most probably prevent the proposed plan from achieving its intended effect?

a) After graduation from college, most maths and science graduates opt for jobs in industry rather than in teaching.

b) More scholarship money is already available for students of maths and science than is available for those in any other field.

c) Many high schools have been forced to lower their standards in hiring maths and science teachers.

d) Population statistics show that the number of high school students is expected to decline over the next ten years.

Answer: (a)

The "Hope of pursuing" is shattered if option (a) happens.

Question : 3

The company encourages its managers to interact regularly, without a pre-set agenda, to discuss issues concerning the company and society. This idea has been borrowed from the ancient Indian concept of religious congregation, called satsang. Designations are forgotten during these mettings; hence, it is not uncommon in these meetings to find a sales engineer questioning the CEO on some corporate policy or on his knowledge of customers Based on the information provided in the above passage, it can be inferred that

a) The company is concerned about its reputation with its employees.

b) The company has some inter-personnel problems in the past due to which it felt the need for these corporate satsangs.

c) The company believes in fostering the spirit of dialogue without degenerating it into a position-based debate.

d) All of the above

Answer: (c)

(c) is the only option as according to the passage designations can be forgotten and even a subordinate like a sales engineer can question the CEO.

Question : 4

Inflation can only be fundamentally caused by two factors— supply side factors and demand side factors. These factors are either reductions in the supply of goods and services or increase in demand due to either the increased availability of money or the reallocation of demand. Unless other compensating changes also occur, inflation is bound to result if either of this occurs. In economies prior to the introduction of banks (a pre-banking economy) the quantity of money available, and hence, the level of demand, was equivalent to the quantity of gold available. If the statements above are true, then it is also true that in a pre-banking economy:

a) any inflation would be the result of reductions in the supply of goods and services.

b) if there is a reduction in the quantity of gold available, then, other things being equal, inflation would result.

c) if other factors in the economy are unchanged, increasing the quantity of gold available would lead to inflation.

d) whatever changes in demand occur, there would be compensating changes in the supply of goods and services.

Answer: (c)

As inflation is a result of increase in the availability of money (or gold in the pre-banking economy) so (b) is wrong and (c) is correct.

(d) is wrong as it is out of context of the passage. (a) is wrong as it talks of 'any inflation' and leaves the inflation caused by increase in demand.

This would have been correct if the option had mentioned that other factors remain unchanged.

Directions:

Study the following information to answer the given questions.

Science is a sort of news agency comparable in principle to other news agencies. But this news agency gives us information which is reliable to an extraordinarily high degree due to elaborate studies spread over centuries. So, science should be read with the same interest with which we read news.

Question : 5

Which of the following may be regarded as an assumption in the above passage?

a) Verification of news is necessary.

b) Science is objective in approach.

c) Science encourages investigative spirit.

d) Science gives us news and not any other information regarding national phenomenon.

e) None of these

Answer: (e)

Question : 6

Which of the following strengthens the argument?

a) Agricultural research is scientific.

b) Verified information is reliable.

c) Science gives abstract theories.

d) Science is a compulsory subject.

e) None of these

Answer: (b)

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