Table of Contents Chapter 1: Introduction to Critical Reasoning

Chapter Topic Page 1.1 Introduction

No No. What is critical reasoning all about? It is basically about
1 Introduction to Critical Reasoning arguments and their validity. An argument is a group of
1-3
1.1 Introduction statements; one is supposed to follow from the others,
which are regarded as providing support or grounds for
2 Identifying Conclusions
4 - 10 the truth. This is called the conclusion of the argument.
2.1 Identifying Conclusions Quiz
The statement(s) that provide the support or reasons for
3 Fallacies accepting the conclusion are the premises.
3.1 Types of Fallacies 11 - 27
Conclusion: A conclusion is a claim, the main point of an
3.2 Identifying Fallacies quiz argument.
4 CR Technique Facts or Premises: A premise is a stated reason, a piece
28 - 29
4.1 Technique for CR of evidence that supports the conclusion.
5 CR Question Types Assumption: An assumption is an unstated premise that
5.1 Additional Facts supports the conclusion.
5.2 Conclusions 30 - 57
Consider the following sample argument:
5.3 Assumptions
United Artists most recent film is based on a best-selling
5.4 Analysis of Explanations
novel and stars Brad Heartthrob. Therefore, the film is
6 Practice Questions expected to do well at the box office.
6.1 Practice Test 58 - 70
The first step in tackling a problem such as this is to
Answer and Explanation identify the three components.

Fact 1: Film based on popular novel Once you identify the components, you must answer
Fact 2: Star is Brad Heartthrob questions that ask you to evaluate these components.
There are three basic question types in the Logical
Conclusion: Film should be successful Reasoning section, each focusing on one of the three
The assumptions are always unstated (hereafter, Hidden components. They are in descending order of frequency:
Assumptions, or Hidden Assumption's): they are the Additional Fact Questions, the Conclusion Question,
additional pieces of information about each fact in the and the Hidden Assumption Question.
argument. For example: A. Some of the questions will merely ask you to
Hidden Assumption for fact 1: Fans of the book are identify the conclusion.
expected to help sales of tickets. B. Additional Fact/ Inference questions - these ask
Hidden Assumption for fact 2: Brad Heartthrob's you to find something that is known to be true from
presence should contribute to the success of film. information presented in the argument containing
These Hidden Assumption's help you see how the facts words like - infer, implicit, imply, most reasonably
lead to the conclusion. You can often, though not always, and must be true. Inferences could be about a
distinguish fact from conclusion by spotting "signal conclusion that was not stated, or from facts
words" that introduce each component. The Conclusions stated as premises.
may be signaled by words like as, therefore (as in the C. Assumption questions – These use phrases like
example above), so, thus, and in conclusion. Detailed depends on, relies on, assumes. Look for a gap
facts, which are more specific than conclusions, may be between the premises and the conclusion, try to
flagged by such words as due to, because, a study get a sense of what assumption is necessary to fill
shows, and in addition. the gap. Try to state the assumption in your own
words before seeing the answer choices.

2 3
Chapter 2: Identifying Conclusions thought, as it concerned itself primarily and
specifically with those problems which originated
2.1 Identifying Conclusions Quiz
from and had relevance to Muslims.
Identify the conclusion in the arguments expressed in
7. Letting forests die is self destructive. Their role as
questions 1-11:
a filter of the world’s pollution, a sponge that
1. The FDA should stop all cigarette sales absorbs carbon dioxide and slows global warming
immediately. After all, cigarette smoking is the is crucial to the life of the earth.
leading preventable cause of death.
8. As the government spends increasingly less on
2. Every law is an evil, for every law is an infraction of student financial aid, many leading colleges and
liberty. universities are using a larger percentage of tuition
3. Wisdom is the principal thing, therefore get revenues for scholarships. Just as income tax
wisdom. breaks are given for charitable contributions, this
portion of the tuition should be tax deductible.
4. Now human law is framed for a multitude of
human beings. The majority of human beings are 9. If the criminal law prohibits suicide, that is not an
not perfect in virtue. Therefore human laws do not argument valid in the church; and besides, the
forbid all vices. prohibition is ridiculous; for what penalty can
frighten a person who is not afraid of death itself?
5. ... vicious acts are contrary to acts of virtue. But
human laws does not prohibit all vices... Therefore 10. If a right to euthanasia is grounded in self
neither does it prescribe all acts of virtue. determination, it cannot be reasonably limited to
the terminally ill. If people have a right to die, why
6. The real and original source of inspiration for the
must they wait till they are dying before they are
Muslim thinkers was the Quran and the sayings of
permitted to exercise that right?
the Holy Prophet. It is therefore clear that the
Muslim philosophy was not a carbon copy of Greek

4 5

11. The dreamer rejected the ordinary. Jay invited the retirement years and intersperse them in between
ordinary. Jay was no dreamer. those working years. (Applause) That's clearly
Questions 12-15 are excerpts from TED talks. In your enjoyable for myself. But probably even more
own words, write down the conclusions made by the important is that the work that comes out of these
passage. And btw, if you loved the passage, you can watch years flows back into the company and into society
the TED talk by clicking on the hyperlink below  at large, rather than just benefiting a grandchild or
two.
12. I learned that it all changes in an instant. We have
this bucket list, we have these things we want to Excerpted from TED talk by Stefan Sagmeister
do in life, and I thought about all the people I 14. We are constantly trying to put accountability in
wanted to reach out to that I didn't, all the fences I someone's hands. Who is accountable for this
wanted to mend, all the experiences I wanted to process? We need somebody accountable for this
have and I never did. As I thought about that later process. So in the relay race, since passing the
on, I came up with a saying, which is, "I collect bad baton is so important, then we need somebody
wines." Because if the wine is ready and the person clearly accountable for passing the baton. So
is there, I'm opening it. I no longer want to between each runner, now we will have a new
postpone anything in life. And that urgency, that dedicated athlete, clearly dedicated to taking the
purpose, has really changed my life. baton from one runner, and passing it to the next
To access this TED talk by Ric Elias click on this runner. And we will have at least two like that. Well,
will we, in that case, win the race? That I don't
13. Also is the knowledge that right now we spend know, but for sure, we would have a clear interface,
about in the first 25 years of our lives learning, then a clear line of accountability. We will know who to
there is another 40 years that's really reserved for blame. But we'll never win the race. If you think
working. And then tacked on at the end of it are about it, we pay more attention to knowing who to
about 15 years for retirement. And I thought it blame in case we fail, than to creating the
might be helpful to basically cut off five of those

6 7
 conditions to succeed. All the human intelligence day. In fact, it was a pretty good mental model for
put in organization design -- urban structures, business -- overall -- until about the mid-1980s,
processing systems -- what is the real goal? To when the conjunction of globalization and a
have somebody guilty in case they fail. We are revolution in technology and telecommunications
creating organizations able to fail, but in a made business far more dynamic and
compliant way, with somebody clearly accountable unpredictable.
when we fail. And we are quite effective at that -- Excerpted from TED talk by Martin Reeves
failing.
Answer and Explanation
Excerpted from TED talk by Yves Morieux
1 The FDA should stop all cigarette sales immediately. After
15. Change has to first start in the mind. If we think all, cigarette smoking is the leading preventable cause of
back to our pitch to Bob, in order to apply the death.
principles that underpin the miracle of the human 2 Every law is an evil, for every law is an infraction of liberty.
immune system, we first need to think differently 3 Wisdom is the principal thing, therefore get wisdom.
about business. Now typically, when we think 4 Now human law is framed for a multitude of human
about business, we use what I call "mechanical beings. The majority of human beings are not perfect in
thinking." We set goals, we analyze problems, we virtue. Therefore human laws do not forbid all vices.
5 vicious acts are contrary to acts of virtue. But human
construct and we adhere to plans, and more than
laws does not prohibit all vices... Therefore neither does it
anything else, we stress efficiency and short-term
prescribe all acts of virtue
performance. Now, don't get me wrong -- this is a 6 The real and original source of inspiration for the Muslim
splendidly practical and effective way of thinkers was the Quran and the sayings of the Holy
addressing relatively simple challenges in relatively Prophet. It is therefore clear that the Muslim philosophy
stable environments. It's the way that Bob -- and was not a carbon copy of Greek thought, as it concerned
probably many of us, myself included -- process itself primarily and specifically with those problems which
most business problems we're faced with every originated from and had relevance to Muslims.

8 9

7 Letting forests die is self destructive. Their role as a filter Chapter 3: Fallacies
of the world’s pollution, a sponge that absorbs carbon
3.1 Types of Fallacies
dioxide and slows global warming is crucial to the life of
the earth. Most often questions check the knowledge of being able
8 As the government spends increasingly less on student to pick holes in arguments. The various types of fallacies
financial aid, many leading colleges and universities are are:
using a larger percentage of tuition revenues for
scholarships. Just as income tax breaks are given for Ignorance
charitable contributions, this portion of the tuition should
be tax deductible.
9 If the criminal law prohibits suicide, that is not an
argument valid in the church; and besides, the prohibition
is ridiculous; for what penalty can frighten a person who
is not afraid of death itself?
10 If a right to euthanasia is grounded in self determination,
it cannot be reasonably limited to the terminally ill. If
people have a right to die, why must they wait till they are
dying before they are permitted to exercise that right?
11 The dreamer rejected the ordinary. Jay invited the
ordinary. Jay was no dreamer.
12 The future is uncertain, so do whatever you want to do it, A statement is true simply because it has not been
do it now proved false or vice versa. Appeal to Ignorance occurs
13 Take sabbaticals; it will benefit you and the society. when a person mistakenly believes something to be true
14 You cannot have accountability without responsibility. that is not, because he or she does not know enough
15 Rule based organizations run well when environment is about the subject, or has not been given enough
stable, but dynamic environments require more of
evidence, to know otherwise. For example, an argument
innovation than rules.
based on stereotype is an example of ignorance fallacy.

10 11
Such an argument is persuasive because the audience reliable information about the past. Indeed, it is hard to
wants to believe what their prejudice tells them is true. see how any stable and cohesive society could exist
Since the new drug showed no adverse effects on mice, without a great deal of shared trust in its members’ basic
it has no adverse effects on humans. honesty and reliability. For that reason, trust in authority
has aptly been described as “the very foundation of
No one can actually prove that God exists; therefore God civilization.” Too often, however, people rely uncritically
does not exist. on the authority of others. Throughout history blind faith
Inappropriate Authority in authority has bred superstition, intolerance, and
dogmatism. Consequently, it is of great importance to be
able to distinguish legitimate appeals to authority from
those that are fallacious. The fallacy of inappropriate
appeal to authority is committed when an arguer cites a
witness or authority who, there is good reason to believe,
is unreliable.
Drive a Ford Escort because the famous tennis star
Leander Paes drives one.
Oppenheimer concluding that nuclear weapons is a
wrong political decision.

All of us depend on things that other people tell us.

Children rely on their parents and teachers for basic
guidance and instruction. Scientists rely on other
scientists to report their findings accurately. Historians
depend on primary sources and other historians for

12 13

Circular Reasoning Ad Hominem

The circular argument uses its own conclusion as one of

its stated or unstated premises. Instead of offering proof,
it simply asserts the conclusion in another form, thereby
inviting the listener to accept it as settled when, in fact, it
has not been settled. Because the premise is no different
from and therefore as questionable as its conclusion, a An ad hominem argument is one that is used to counter
circular argument violates the criterion of acceptability. another argument; but, it is based on feelings or
To allow every man unbounded freedom of speech must prejudice, rather than facts, reason or logic. It is often a
always be, on the whole, advantageous to the state; for it personal attack on one’s character rather than an
is highly conducive to the interest of the community that attempt to address the issue at hand. This type of fallacy
each individual should enjoy a liberty, perfectly unlimited, can often be witnessed in usage in individual debate, in
of expressing his sentiments. court or in politics. Often, the attack is based on one’s
social, political, or religious views, or is based on lifestyle
I know what the author says is true, because he states in
choices of the person being attacked using ad hominem.
the preface that he does not lie.
Cardinal Newman’s claims were not to be trusted,
because being a Roman Catholic priest, Newman’s first
loyalty was not to the truth.

14 15
This is a female issue. As a man, how can you have an An environmental group illegally blocked loggers and
opinion about this? workers at a nuclear plant. Therefore, environmentalists
You wouldn’t understand since you have never had to are radicals who take the law into their own hands.
struggle. Part-Whole
Sampling

Wrong to make a generalization - or make a specific

conclusion from a generalization. Eating deep fried foods The error of assuming that what is true of a member of a
has a generally adverse impact on one’s cholesterol level, group is true for the group as a whole.
but that bad outcome may not arise in some persons, so Since every part of the machine is light in weight, the
can we claim that eating fried foods is not bad? It is machine is light weight.
a broad claim based on too-limited evidence. It is The atomic bombs dropped during WWII did more
unethical to assert a broad claim when you have damage than did the ordinary bombs that were dropped.
only anecdotal or isolated evidence or instances. (individually or collectively?)
It rained yesterday and today. Therefore it will rain
tomorrow

16 17

Bad Syllogism The universe is like a watch. A watch must have a

watchmaker. The universe, being like a watch, must have
a designer.
Correlation not Cause

Use Venn Diagram approach to decide if a syllogism

follows. That "correlation proves causation," is considered
False Analogy questionable when two events occurring together are
taken to have established a cause-and-effect
relationship.
In a series of experiments from 1924-1932, researchers
studied the worker productivity effects associated with
Analogies and metaphors can be very useful altering the Illinois factory's environment, including
to explain things to people and often play an important changing light levels, tidying up the place and moving
part in learning. A false analogy is a logical fallacy that workstations around. Just when they thought they were
occurs when someone applies facts from one situation on to something, they noticed a problem: The observed
to another situation but the situations are substantially increases in productivity flagged almost as soon as the
different and the same conclusions cannot logically be researchers left the works, indicating that the workers'
drawn. knowledge of the experiment, not the researchers'
changes, had fueled the boost. Researchers still call this
phenomenon the Hawthorne Effect.

18 19
Ambiguity 3.2 Identifying Fallacies quiz
These are fallacies that occur because of the ambiguous Identify the type of fallacy expressed in the 15 cartoons
or unclear use of language. below:
An elephant is an animal, so a small elephant is a small
animal. “definition of small is relative”. Why do white
sheep eat more than black sheep? “because there are
more of them” ( sheep was plural)
Complex Question
Asking the question in such a way as to presuppose the
truth of some conclusion in that question.
1.
Why is the private development of resources so much
more efficient than any government owned enterprise?
Or asking two questions at one go and expecting an
answer in the negative or affirmative at one go.
Were you at home at 9 p.m.? Did you come home early on
the day that the murder was committed?

2.

20 21

3.
5.

4.
6.

22 23
7.

9.

8.

10.

24 25

Answers to the Fallacy Quiz

Types of Fallacy
1. Appeal to inappropriate authority
2. Circular Reasoning
3. Complex question
4. Ignorance
5. Correlation not cause:
11.
6. Ad Hominem – Against the person
7. Of sampling
8. Equivocation
9. Ambiguity
10. Composition
11. Syllogism
12. Complex question

12.

26 27
Chapter 4: CR Technique constructed, what the test is asking you to do, and then
to practice. Keep in mind the following steps when
4.1 Technique for Critical Reasoning
tackling this section in the test.
The general algorithm to be used in answering any
Read each paragraph carefully.
critical reasoning questions is:
A. Distinguish conclusion from fact and consider the
1. Identify the conclusion. In some cases, the
hidden assumptions based on given facts.
question can take the forms of a fill-in-the-blank, in
which case the conclusion would be part of the B. Read the question carefully.
option. C. For additional fact questions, make sure of your task
2. Ask yourself this question. What is evidence in the (strengthen or weaken) before proceeding. Choose the
argument itself, which is supporting the statement that directly addresses a given fact, Hidden
conclusion? This would be explicitly stated in the Assumption, or conclusion.
argument. D. For conclusion questions, think in a linear fashion:
3. The next question that you will need to address. Is Where are the facts headed? Choose a statement that
the conclusion dependent upon some conditions goes one logical step further from the given facts.
that have not been stated explicitly in the passage? E. For Hidden Assumption questions, remember to
If that is the case, try to list down such choose a statement that supports the argument with
assumptions. more information about given issues. Try the “negation
4. Look at the question and try to frame an answer to test.”
the question, as far as possible without looking at
the options.
The best possible suggestion for doing well on Critical
Reasoning is to understand how the problems are

28 29

Chapter 5: CR question types If the question asks you to weaken the argument, you will
5.1 Additional Fact Questions choose a statement that either weakens a given fact or
disputes Hidden Assumption and makes the conclusion
Types of Questions illogical. Option 5 best weakens this argument by
The Additional Fact questions focus on the supporting disputing the Hidden Assumption that Brad H. will attract
details of the argument. You are presented with a moviegoers. The conclusion no longer logically follows.
complete argument and are asked either to weaken or For a strengthening choice, you would choose a
strengthen the argument by considering five multiple- statement to bolster a given fact or Hidden Assumption
choice statements. These statements are new facts to support the conclusion. The correct strengthening
about the argument, which you must accept as true. option here would be 4, for it elaborates the book's
Some additional fact questions ask for a weakening of popularity, thus supporting the conclusion. Wrong
argument, while others might ask you to support the choices, called distracters, usually follow a pattern. They
argument. may touch upon the argument only marginally (such as
For example, in the preceding argument regarding United answers 1, 2, & 3): they may accomplish the opposite
Artists’ new movie, an Additional Fact Question might task (strengthen when you want to weaken); or they may
offer the following choices: not be the best strengthening or weakening statement
(e.g. option 1 is not the best weakening statement when
1. The film will play only in urban areas. compared to 5)
2. The producers of the film have cast their next
Attempt these questions.
movie without Brad H.
Q1. The trend in the United States banking industry of
3. The film is not likely to win an Academy Award.
several small community banks merging into fewer large,
4. The book upon which the film is based is a interstate banks has consumers worried about service.
worldwide hit. Many consumers worry that, as banks become larger and
5. Brad H's popularity ratings are at an all-time low. fewer in number, the competition in the banking industry

30 31
will decrease, and consumers will lose services and will Q2. Of the graduating students from Governor Smith
pay higher fees. As a result, many consumers are urging Academy, a private high school, 93 percent go on to
their legislators to enact legislation to limit the size of college. From Eastern High, the public high school in the
any individual banking company. same city, only 74 percent go on to attend college. As a
Which of the following facts would most allay the fears result, many parents with children about to enter high
of the consumers discussed in the preceding argument? school believe that Governor Smith Academy gives
students a better education than they can get at Easter
1. The federal government recently enacted High School.
legislation to increase the maximum amounts of
deposits that will be insured. Which of the following statements, if true, would cast the
most doubt on the conclusion about Governor Smith
2. A limitation on mergers between interstate banks Academy?
could be construed as a violation of the Commerce
Clause of the United States Constitution. 1. Until 1992, Governor Smith Academy was
exclusively a girl's school, but Eastern High School
3. Larger banks are able to generate higher profits for has always been coeducational.
their investors with lower levels of risk.
2. Governor Smith Academy requires students to
4. As a bank increases in size, its overhead costs for pass an admission examination before entering,
operation will decrease, and it will be able to but Eastern High School admits all applicants who
improve the services to its consumers. live in the city.
5. Large governmentally operated banks have 3. Eastern High School has problems with student
functioned successfully in other countries for violence during school hours.
many years without any decrease in services to
their consumers, and with service fees that are less 4. Governor Smith Academy has a higher percentage
than many private banks. of students attending Ivy League colleges than any
other high school in the state.

32 33

Q3. Television Advertisement: “Leonardo da Vinci was 5. Even when using supplies from Acme Art Supply
a genius, and everyone recognizes his art as the greatest Company, many amateur artists create projects
in the world. At Acme Art Supply Company, you can get that art critics call inferior and childish.
modern, improved art supplies, so you will be able to Q4. While some job loss is inevitable in a changing
create works of art better than Leonardo da Vinci's.” American economy, the current phase of corporate
Which of the following statements, if true, most shows “downsizing” has reached the level of becoming an
the flaws in the claims made in this advertisement? epidemic. Many employees are being fired simply to
1. Leonardo da Vinci, at the time he was painting in enhance profits for top management and company
the fifteenth century, was sponsored by patrons shareholders. Even so, some economists see
who provided him with the opportunity to use the improvement in the fact that the total number of new
best materials then available in the world. jobs being created is increasing at a steady rate.

2. Most of the customers of Acme Art Supply Which of the following facts, if true would show that the
Company are hobbyists who are not professionally economists’ view of improvement is incorrect?
trained and who do not realize the value of using 1. The new jobs that are being created come as a
professional-quality art supplies. result of Governmental tax incentives to large
3. The art supplies at Acme Art Supply Company are corporations.
more expensive than similar supplies available at 2. Corporate downsizing is not actually resulting in
any other supply store in the area. higher profits for shareholders as expected.
4. An art professor from the local community college 3. Many of the new jobs are low-paying entry-level
supplies all of his students with materials from the positions that do not provide health care or
Acme Art Supply Company. pension benefits.

34 35
4. A separate study of corporate shareholders reveals 4. The doctors reporting the results of the study had
that many of them would be willing to forgo higher once been discredited for falsifying the results of
profits in order to increase hiring levels. their research.
5. Other countries are experiencing similar increases 5. Other studies have shown that the body eventually
in job creation. reaches a maximum plateau with regard to its LDL
Q5. High doses of niacin in a person's diet have been level.
shown to raise HDL levels, which doctors call the “good” Answer and Explanation
cholesterol, and to lower levels of triglycerides and LDL, Q. Key Explanation
the so-called “bad” cholesterol. As a result of this study, no.
some nutritionists are now recommending diets that are 1. 4 In this question, the basic issue is the effect of
extremely high in niacin. size on consumer service. Option 1 talks of
insurance but the relation between insurance of
Which of the following facts, if true, would most question
deposit and consumer service can’t be
the recommendations of the nutritionists? [Link] 2 is actually going to increase
1. The original study was conducted on a sample of the instances of mergers leading to a heightening
hospital patients who initially had dangerously of the consumers fears.
high cholesterol levels. Option 3 seems of at first glance but the moot
question here is about service and not return.
2. High doses study was conducted on a sample of Option 4 gives us reason to believe that bigger
hospital patients who initially had dangerously banks offer better service than smaller banks – so
high cholesterol levels. that they actually reduce the consumer’s fear.
Right [Link] 5 talks about government
3. When level of triglycerides decrease, patients controlled banks whereas the equation is talking
report higher levels of stamina and improved about community banks.
physical endurance. 2. 2 The conclusion here is that the measure of the
quality of the school is the percentage of students

36 37

it sends to college. 5.2 Conclusion Questions

A strong assumption over here is that when
Read the question first to decide what the question is
students join school they all have the same
intellect. asking. Do not read the choices. Then read the argument
Option 2 casts aspersions on this assumption, passage. As you read look for the conclusion. The
hence on the quality of Governor Smith Academy. conclusion often comes after words like: therefore, thus,
3. 5 Assumption: The quality of art supplies is the hence, then, consequently, as a result. State what you
main determinant of a work of art. Conclusion: think is the conclusion and then ask, “Why?” The other
Using Acme’s art material will make you a better statements should provide the reasons. If not then you
painter than da [Link] 5 provides evidence have chosen the wrong part as the conclusion. The
of contradiction of the main assumption, hence it
premises answer the question “Why?” Certain words that
points out the flaw in the claim.
generally introduce a premise are: because, since, if,
4. 3 Conclusion: There is an improvement in the
economy. Assumption: Total number of new jobs given that, in view of, assume, suppose.
is a good indicator of economic conditions. If you At times, arguments will be missing their conclusion. A
have new jobs which have lesser pay and benefits series of facts, along with unstated Hidden Assumption's
substituting old jobs, then the overall economy
will lead to the final statement, which you must supply.
would suffer. This evidence is introduced by
Sound arguments are linear, in that you can usually
option 3.
5. 2 Conclusion: High levels of niacin in the diet is
predict in what general direction the facts are headed.
good for health. Assumption: There are no side – You may also consider the conclusion an inference: you
effects. The sample is representative of the are inferring the conclusion from the specific statements
population. Option 2 tells us that sample is not and associated Hidden Assumptions.
one of healthy people – so we cannot generalize
The newest book by England's favorite political satirist
the results of this study. Option 1 talks of a
different study so it is not relevant.
has received warm praise from critics. In addition, there
is a strong market in the U.K. for political satire.

38 39
You are now asked to choose the statement that best Attempt these questions:
completes this series of facts. Q1. A consumer watchdog group recently reported the
1. Political satire transfers well to other countries. results of a study surrounding the deregulation of the
2. The author of this book is a member of Parliament. U.S. banking industry, which has allowed for more
mergers between banks and has allowed banks more
3. People read book reviews before making freedom in setting their interest rates for their
purchases. customers. The report shows that customers now have
4. Such a book will be banned by the current Tory access to higher savings interest rates and lower
government. borrowing interest rates. At the same time, banks, are
5. The book will do well in British Bookstores. reporting record profits.

Although a series of facts does not usually have just one From the results of this study, what can be concluded
possible conclusion, there is only one best conclusion in about the effect of deregulation of the American banking
the given choices. The best answer here would be one industry?
that follows the path that the facts follow, by making a 1. Deregulation has hurt the banking industry by
more general statement. The answer is (5). limiting the number of options allowed to the
Distracters may read too much into the facts; In the customers of small, local banks.
preceding example, statement (4) is a choice that goes 2. Deregulation has been a success because it has
too far from the given facts; you cannot reach the given the banks the ability to raise their interest
conclusion from the facts alone. Another sort of rates and force their customers to pay the highest
distracter introduces more detail instead of making the rates possible.
leap to a conclusion; examples of this would be answer 3. As a result of the deregulation of the banking
(1), (2), and (3). industry, investments in other industries will

40 41

increase resulting in a stronger economy 3. The costs related to operating the school
nationwide. department's health insurance program must have
4. Deregulation has been a success because it allows increased dramatically from 1994 to 1995.
both the banks and their customers to realize 4. The health insurance account received less
savings and profits at the same time. funding in 1995 than it did in 1994
5. Because deregulation has lowered the interest 5. The health insurance budget will show an even
rates that customers will have to pay, many banks greater deficit in 1996 than it did in 1995.
will be driven out of business in the near future. Q3. In a game of Monopoly, if a player owns a hotel on
Q2. A report from the head of the city's school Boardwalk, he must own both Boardwalk and Park Place.
department reveals that the school department had a If he owns a hotel in Marvin Gardens, he must own
larger surplus in its health insurance account at the end Marvin Gardens.
of 1994. If the player described above does not own Park Place,
The same report showed that at the end of 1995 the which of the following conclusions may be drawn?
school department suffered a deficit of $300,000 in the 1. The player owns a hotel on Boardwalk.
same account. Despite this decline, the school
department reported no significant changes in costs over 2. The player owns a hotel in Marvin Gardens but
the two-year period. does not own a hotel on Boardwalk.

What can be concluded from the results of this report? 3. The Player owns Marvin Gardens and Boardwalk,
but does not own a hotel on either property.
1. The school department's budget for health costs is
excessively high. 4. The player does not own a hotel in Marvin Gardens.

2. More teachers were provided with health insurance 5. The player does not own a hotel on Boardwalk.
payments during 1995 than in 1994.

42 43
Q4. As the temperature of a solution of water and Q.5. Advertisement: Seven out of ten municipal
chemical X increases, the reactivity of chemical Y employees choose Green Arrow Underwriters as their
increases but the reactivity of chemical X remains health insurance provider.
constant. As the temperature of a solution of water and From the information provided in this advertisement,
chemical Y increases, the reactivity of chemical Y what further conclusion may be drawn?
remains constant.
1. Green Arrow Underwriters has the cheapest
From the above information, what conclusion may be premium rated of any other insurance company
drawn? available.
1. A change in temperature has no effect on the 2. All other health insurance providers, excluding
reactivity of chemical Y. Green Arrow Underwriters, provide services to less
2. A change in temperature of chemical Y causes a than 50 percent of the municipal employees.
reduction in the temperature of chemical X. 3. Municipal employees need less health insurance
3. When combined, chemical X and chemical Y coverage than employees in other industries.
display different reaction levels than when studied 4. Green Arrow Underwriters provides more valuable
separately. services and better customer assistance than any
4. When combined with chemical X, chemical Y of its competitors.
demonstrates the same reactive properties as it 5. Except for Green Arrow Underwriters, the health
does when it is studied alone. insurance industry is suffering a decline in the rate
5. A change in temperature produces a greater effect of obtaining new customers.
on chemical Y than it does on chemical X.

44 45

Answer and Explanation 5.3 Assumption Questions

Q. no. Key Explanation To tackle the Hidden Assumption question, you must
1. 4 Conclusion: U.S. banking deregulation has directly face the hidden statements that underlie the
helped improve profits of banks, whilst offering argument. Each Hidden Assumption statement meets
high rates for deposits and low rates for the following two criteria: it gives you extra information
borrowers.
about the existing facts instead of supplying new facts,
Option 4 talks of this and so is the right option.
and it must be true for the argument to be valid.
2. 4 Conclusion: Deficit increased in 1995
compared to 1994, without any changes in The Republican candidate for governor of State X will get
costs. Now deficit is a function of funds the education vote. More than $200,000 was donated to
received and funds spent. Option 4 indicates her campaign fund by the state teachers' union. The
that 95 saw a dip in funds received and hence
same union donated only half that amount to the
accounts for the increased deficit
Democratic candidate's campaign.
3. 5 The conditions can be symbolized as
Boardwalk HotelBoardwalk, Park Place You would then be asked to choose the statement that
Marvin gardens Hotel  Marvin Gardens best reveals an assumption underlying the preceding
Park Place  Broad walk Hotel argument.
Hence option 5.
4. 3 Data can be tabulated as below: 1. The Republican candidate is a former teacher.
Water – X Temp Hi X Y 2. The Democratic candidate will lose the election.
Const. Hi
Water – Y Temp Hi -- Const
3. A donation usually indicates approval of a candidate.
5. 4 Conc: 70% Munc. employees insure with Green 4. Most teachers have joined the union.
Arrow. Inf:Green Arrow must be seen to be
5. Unions endorse candidates in each election.
Value – For – Money for this to happen. Hence
option 4. The advertiser quotes this statistic to
imply the message stated in the inference.

46 47
An excellent test of a Hidden Assumption is the Attempt these questions:
“negation test”. If you think a choice is a Hidden In order to ensure a successful vote on the issue of
Assumption, negate it and see if it seriously affects the abortion rights, the governor is pressuring the leaders of
validity of the conclusion – the right answer should. the state political party to replace several delegates to
For example, suppose you are struggling between the national convention. The governor is insisting that
answer (3) and (4). If answer (4) was falsified, you would certain individuals with a history of voting in favor of
now have the statement “Most teachers have not joined abortion be replaced with those who have voted against
the union.” Does that mean that the Republican abortion rights in the past.
candidate is now likely not to win the education vote? Q1. The governor's actions demonstrate that he is
She may still. Negation of answer (3) gives you making which of the following assumptions?
“Donations usually don’t indicate approval of a
candidate.” This negative statement does the most direct 1. Voting on abortion issues is an important part of
harm to the conclusion that the Republican candidate the national political agenda.
will get teachers' votes; it makes the connection between 2. The current delegates will probably not share the
the facts and conclusion illogical. Answer (3) is correct. governor's views on such issues as the national
Distracters associated with this question type include budget or federal spending limits.
choices such as (4), which doesn't support the 3. The proposed new delegates will continue to vote
conclusion enough; as well as irrelevant statements on abortion issues in the same way that have voted
such as (1), (2) and (5) besides being marginal to the in the past.
problem, these statements also introduce new facts, 4. The national delegation will not have an
whereas answer (3) elaborates on the facts given. opportunity to vote on any issues other than
abortion rights.

48 49

5. Governors of other states will be making similar 5. The city public transportation system does not
changes to their states' delegations, so that the allow passengers to buy tokens in advance.
issue of abortion rights will be guaranteed to be Q3. The newspaper just reported that a man won this
decided as this governor desires. year's national baking contest for the first time in its
Q2. To travel on public transportation from City Hall to history. The contest has used both male and female
the convention center, the most direct route requires judges for many years. This must have been the first year
passengers to ride the Blue Bus line to Center Street, that the contest was open to male participants.
collect a token at Center Street station, then ride the Which of the following is an assumption upon which the
subway to Middle street. This weekend there will be a big speaker's conclusion is based?
political rally, so the city should hire extra token vendors
for the Center Street station. 1. The newspapers has never before reported the
results of the national baking contest.
The conclusion for the preceding argument depends
upon which of the following assumptions? 2. Male judges are more likely to vote for a male
contestant than for a female contestant.
1. The mayor will be working at City Hall this weekend
and will need to use public transportation to go to 3. Men have tried to enter the national baking contest
the convention center. for several years but have been denied.

2. There is no way to get from City hall to the 4. Men are generally superior to women and would be
convention center without going through the able to beat them in any kind of competition.
Center street station. 5. Men are better bakers than women and could win
3. The political rally will draw thousands of people to this contest ever year.
the city from all parts of the state.
4. Because of the political rally, traffic at the Center
Street station will increase.

50 51
Q4. Today is Tuesday and yesterday was Monday. Which of the following statements represents a hidden
Therefore, tomorrow will be Wednesday. assumption upon which the preceding argument
This speaker's conclusion depends on which of the depends?
following assumptions? 1. Human social behaviors follow the same pattern as
1. Wednesday is the day that precedes Thursday. the behaviors of animals.

2. Tuesday always follows Monday. 2. Major cities do not always have adequate budgets
to provided resources for all their residents.
3. If, in any given week, Tuesday follows Monday,
then Wednesday will follow Tuesday. 3. Naturalists and sociologists use the same research
methods in studying their subjects and reporting
4. Every week consists of seven days arranged in a results.
particular order.
4. The study that showed cannibalistic patterns in
5. The speaker always schedules a certain meeting to animals studied only carnivorous animals.
occur on Wednesday.
5. The population of the world has doubled in the
Q5. In the animal world, when any species becomes past five years, and its rate of growth will increase
overpopulated, naturalists observe that the animals even faster in the future.
begin fighting among themselves and become
cannibalistic. Sociologists have been reporting for years
that the human population of the world is growing at an
uncontrollable rate, and the world's cities will be
overpopulated in about ten years. As a result human
societies will begin experiencing a global breakdown and
we can expect an international war within the next ten
years.

52 53

Answer and Explanation within the next 10 years. Assumption: Behaviour

of men and animals in overcrowding will be the
Q. Key Explanation
same.
no.
Option 1 states the same correct answer. Option
1. 3 Conclusion: To get a successful vote you need to
2 justifies the argument but is not an assumption.
have a higher number of delegates with past
Option 3 is a weak assumption. Option 4 is a play
record of supporting your cause.
of words - herbivores cannot be cannibalistic.
Assumption: The past is a good indicator of
Option 5 states a fact that is only restating what
future.
is mentioned in the question.
Option 3 mentions the same.
2. 4 Conclusion: There will be a rush at Centre Street 5.4 Analysis of Explanation Questions
stations this weekend. Assumption: most
Analysis of explanations questions test abilities used in
commuters will prefer the Centre Street route.
explanation: flexibility in generating explanations and
Option 2 is incorrect as it has assumed some
information which might not be [Link] 4 evaluating relevance in terms of them, and in assessing
is a very basic truth that has a much closer the explanatory adequacy of statements. Special subject
relevance to the conclusion. matter knowledge is not required. Each group of analysis
3. 5 Conclusion: the baking contest was till last year of explanations questions consists of a situation and
only open to women. Assumption: Men are more results along with questions directed toward explaining
skilled at baking. the result, given the situation. The questions might be
Option 4 is a more general statement of skills. presented in the format illustrated below, in which two
Option 5 has a more direct reference to baking
choices (A), (B) are available for each answer
and is the correct answer choice.
alternatively be, presented in a three-choice format (A, B,
4. 3 Conclusion: Tomorrow is Wednesday.
Assumption: Wednesday’s come after Tuesday’s. C) with directions to choose the best answer, or in a four-
Option 3 is the only one that directly states the choice format (A, B, C, D) with directions to select a pair
same. of choices from among the four choices.
5. 1 Conclusion: There will be a global breakdown

54 55
Directions: preceding each group of numbered How this result arose from the given situation needs
statements is a question that can be answered "Yes" or explanation.
"No". Answer this question separately for each statement You will be asked, for each of several statements,
in the group by marking answer choice A on your answer whether the statement is relevant to explaining how this
sheet for “yes” or answer choice B for “No” next to the result arose from the given situation. A statement is
number for each statement. Be careful not to mark relevant if it provides information (beyond what is given
answer choices C, D or E. Do not assume either that there in the situation) that either supports or, alternatively,
are more “Yes” answers or that there are more “No” weakens some possible adequate explanation.
answers.
You will also be asked, for each of several other
Situation: The damming of the Palman River partially statements, whether the statement could serve as a
flooded the West Kenyan Wildlife Preserve and caused basis for explaining how this result arose from the given
overcrowding of the animal population. Therefore, one situation.
hundred of the giraffes and one hundred of the
Zimmerman gazelles were moved to the much larger Do not consider extremely unlikely or farfetched
East Kenyan preserve, where identical species of lions explanations.
and giraffes as in the West Kenyan preserve and one Question: In the following statement, if true, relevant to
species of gazelles, Allen gazelles, were already living. some possible adequate explanation of how the result
The only difference in climate was that the East Kenyan arose from the given situation?
preserve averaged about ten inches less rain per year. In No zoo has succeeded in breeding Allen gazelles in
both preserves the prevailing winds were from the east, captivity.
and the terrain was mainly flat.
The weather was normal in East Kenya during the three
Results: After three years in the East Kenyan preserve, years after the transfer.
the population of Zimmerman gazelles there had
diminished almost to the point of extinction.

56 57

Question: Could the following statement, if true, form the 6.1 Practice Questions
basis for an adequate explanation of how the result DIRECTIONS for questions 1 – 5: Write down the
arose from the given situation? conclusions in the arguments that follow:
The animals successful rounded up for the transfer 1. Two decades after the Emerald River Dam was
included primarily the weaker Zimmerman gazelles, built, none of the eight fish species native to the
which then lost out in competition for grass with the Emerald River was still reproducing adequately in
Allen gazelles. the river below the dam. Since the dam reduced
Kenya's efforts to increase hydroelectric power caused the annual range of water temperature in the river
the overcrowding in the West Kenyan preserve. below the dam from 50 degrees to 6 degrees,
scientists have hypothesized that sharply rising
water temperatures must be involved in signaling
the native species to begin the reproductive cycle.
2. Low-income families are often unable to afford as
much child care as they need. One government
program would award low-income families a refund
on the income taxes they pay of as much as $1,000
for each child under age four. This program would
make it possible for all low-income families with
children under age four to obtain more child care
than they otherwise would have been able to
afford.
3. In Asia, where palm trees are non -native, the trees'
flowers have traditionally been pollinated by hand,
which has kept palm fruit productivity unnaturally

58 59
 low. When weevils, known to be efficient 6. Insurance Company X is considering issuing a new
pollinators of palm flowers, were introduced into policy to cover services required by elderly people
Asia in 1980, palm fruit productivity increased - by who suffer from diseases that afflict the elderly.
up to fifty percent in some areas - but then Premiums for the policy must be low enough to
decreased sharply in 1984. attract customers. Therefore, Company X is
4. Although custom prosthetic bone replacements concerned that the income from the policies would
produced through a new computer-aided design not be sufficient to pay for the claims that would
process will cost more than twice as much as be made.
ordinary replacements, custom replacements Which of the following strategies would most likely
should still be cost-effective. Not only will surgery minimize Company X's losses on the policies?
and recovery time be reduced, but also A. Attracting middle-aged customers unlikely to
replacements should last longer, thereby reducing submit claims for benefits for many years.
the need for further hospital stays.
B. Insuring only those individuals who did not suffer
5. Extinction is a process that can depend on a any serious diseases as children.
variety of ecological, geographical, and
physiological variables. These variables affect C. Including a greater number of services in the policy
different species of organisms in different ways, than are included in other policies of lower cost.
and should, therefore, yield a random pattern of D. Insuring only those individuals who were rejected
extinctions. However, the fossil record shows that by other companies for similar policies.
extinction occurs in a surprisingly definite pattern, E. Insuring only those individuals who are wealthy
with many species vanishing at the same time. enough to pay for the medical services.
DIRECTIONS for questions 6-10: In the options that
follow the argument, choose the one that is most
appropriate to the question that follows the argument.

60 61

7. The technological conservatism of bicycle D. The technological conservatism of bicycle

manufacturers is a reflection of the kinds of manufacturers results primarily from their desire to
demand they are trying to meet. The only cyclists manufacture a product that can be sold without
seriously interested in innovation and willing to pay being altered to suit different national markets.
for it are bicycle racers. Therefore, innovation in E. The authorities who set standards for high-
bicycle technology is limited by what authorities performance bicycle racing do not keep informed
will accept as standard for purposes of about innovative bicycle design.
competition in bicycle races.
8. Which of the following best completes the passage
Which of the following is an assumption made in below?
drawing the conclusion?
Established companies concentrate on defending
A. The market for cheap, traditional bicycles cannot what they already have. Consequently, they tend
expand unless the market for high-performance not to be innovative themselves and tend to
competition bicycles expands. underestimate the effects of the innovations of
B. High-performance bicycles are likely to be others. The clearest example of this defensive
improved more as a result of technological strategy is the fact that ______________
innovations developed in small workshops than as A. ballpoint pens and soft-tip markers have eliminated
a result of technological innovations developed in the traditional market for fountain pens, clearing
major manufacturing concerns. the way for the marketing of fountain pens as
C. Bicycle racers do not generate a strong demand for luxury or prestige items.
innovations that fall outside what is officially B. a highly successful automobile was introduced by
recognized as standard for purposes of the same company that had earlier introduced a
competition. model that had been a dismal failure.

62 63
C. a once-successful manufacturer of slide rules A. any inflation is the result of reductions in the
reacted to the introduction of electronic supply of goods and services
calculators by trying to make better slide rules. B. if other factors in the economy are unchanged,
D. one of the first models of modern accounting increasing the quantity of gold available will lead to
machines, designed for use in the banking industry, inflation
was purchased by a public library as well as by C. if there is a reduction in the quantity of gold
banks. available, then, other things being equal, inflation
E. the inventor of a commonly used anesthetic did must result
not intend the product to be used by dentists, who D. the quantity of goods and services purchasable by
currently account for almost the entire market for a given amount of gold is constant
that drug.
E. whatever changes in demand occur, there will be
9. There are fundamentally two possible changes in compensating changes in the supply of goods and
an economy that will each cause inflation unless services
other compensating changes also occur. There
changes are either reductions in the supply of 10. To reduce costs, a company is considering drastic
goods and services or increases in demand. In a reduction in the number of middle-level managers.
prebanking economy the quantity of money This reduction would be accomplished by first
available, and hence the level of demand, is offering early retirement to those 50 years of age
equivalent to the quantity of gold available. or older with 15 years of service, and then by firing
enough of the others to bring the overall reduction
If the statements above are true, then it is also true to 50 percent.
that in a pre-banking economy

64 65

Each of the following, assuming that it is a realistic Answer and Explanation

possibility, is a possible disadvantage to the Q. no. Key Explanation
company of the plan EXCEPT 1. 3 Sharply rising water temperatures must be
A. Loyalty to the company will be reduced among involved in signaling the native species to begin
those surviving the reduction, because they will the reproductive cycle.
2. 4 Program would make it possible for all low-
perceive the status of even good managers as
income families with children under age four to
uncertain.
obtain more child care than they otherwise
B. The restructuring of managerial jobs will allow would have been able to afford.
business units to be adapted to fit a changing 3. 5 Weevils increased palm fruit productivity
business environment. initially, but then it decreased
4. 3 Custom replacements should still be cost-
C. The company will have a smaller pool of managers effective
from which to choose in selecting future senior 5. 1 Extinction occurs in a surprisingly definite
managers. pattern.
D. Some of the best managers, unsure of their 6. A Conclusion: The new policy for elderly people
will make losses because claims would be more
security against being fired, will choose early
than premium.
retirement.
Watch out for: If the company’s losses
E. The increased workload of managers remaining have to reduce, it has to be either able to
with the company will subject them to stress that increase premium or reduce coverage costs.
will eventually affect their performance. A – is increasing premium income as these
people will pay for a longer time
B – Disease in childhood and old age may not
be linked
C – This will raise coverage cost
D – These are riskier individuals – so coverage

66 67
 cost will increase A – The fountain pen industry managed to
E – Not relevant, since the company has to pay survive.
costs, irrespective of the financial condition of B – Failure and innovation both happened in
the insured. the same company
7. C Conclusion: Low innovation in cycle industry is C –In this option, two points are covered a)
because racing rules have not changed much reaction to the competition and b) defending
over the years. strategy and not being innovative. The fact that
Watch out for: Non racers are not interested in most readers don’t even know what a slide rule
innovation; Racers are only interested in those looks like is indication of the industry’s death. It
innovations which are defined by competition was a logarithm based calculator – and was
rules. replaced by electronic calculators.
A – The passage is more about innovation D – Is talking about multiple usage – not
than demand. decline.
B – Small workshop technology is not in the E – Is about the death of a usage, not the
scope of the argument product.
C – Is an important assumption because it links 9. B Conclusion: Inflation can be also compensated
argument and premise. by supply of money.
D – Is offering an alternate reason – and not Watch out for: Discovery of new gold
highlighting an assumption. mines, If no new gold, then Price * qty =
E – Is negating the conclusion – because then constant.
in this case, even racing would not drive A – Can also result from increased demand.
innovation. B – New Gold!
8. C Conclusion: Established companies don’t C – Deflation would result with reduced money
innovate as they are busy defending what they supply.
already have. D – Which means that price is constant.. but
Watch out for: An example where an established then that is not what inflation is!
company was driven out because of innovation E – If money supply is constant.
by competitors. 10. B Conclusion: The best way to cut costs is to fire

68 69

middle level managers.

Watch out for: Very few middle managers, good
people leaving, Morale down
A – It is true because the morale will be down.
B – More flexibility is an advantage!
C – Loss of talent pool and limited choice.
D – The talented and experienced set of people
might leave for better job opportunities.
E – More stress in the workforce

70