How to approach Quantitative Predictive Arguments

Here are the 10 OG questions as promised. Use the methods described above to solve these questions in less than 1 minute

1. The cotton farms of Country Q became so productive that the market could not absorb all that they produced. Consequently, cotton prices fell. The government tried to boost cotton prices by offering farmers who took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per farm.
The government’s program, if successful, will not be a net burden on the budget. Which of the following, if true, is the best basis for an explanation of how this could be so?
A. Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from taxes on farm profits.
B. Cotton production in several counties other than Q declined slightly the year that the support-payment program went into effect in Q.
C. The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level in the base year for the program.
D. The specified maximum per farm meant that for very large cotton farms the support payments were less per acre for those acres that were withdrawn from production than they were for smaller farms.
E. Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn from production to grow any other crop.

2. In Gandania, where the government has a monopoly on tobacco sales, the incidence of smoking-related health problems has risen steadily for the last twenty years. The health secretary recently proposed a series of laws aimed at curtailing tobacco use in Gandania. Profits from tobacco sales, however, account for ten percent of Gandania’s annual revenues. Therefore, Gandania cannot afford to institute the proposed laws.

Which of the following, if true, most seriously weakens the argument?
A. All health care in Gandania is government-funded.
B. Implementing the proposed laws is not likely to cause a significant increase in the amount of tobacco Gandania exports.
C. The percentage of revenue Gandania receives from tobacco sales has remained steady in recent years.
D. Profits from tobacco sales far surpass any other single source of revenue for the Gandanian government.
E. No government official in Gandania has ever previously proposed laws aimed at curtailing tobacco use.

3. Printwell’s Ink Jet Division manufactures ink-jet printers and the ink cartridges they use. Sales of its ink-jet printers have increased. Monthly revenues from those sales, however, have not increased, because competition has forced Printwell to cut the prices of its printers. Unfortunately, Printwell has been unable to bring down the cost of manufacturing a printer. Thus, despite the increase in printer sales, the Ink Jet Division must be providing the company with much smaller than it used to.
Which of the following, if true, most seriously weakens the argument?
A. Ink-jet printers in regular use frequently need new ink cartridges, and Printwell’s printers only accept Printwell’s ink cartridges.
B. Unlike some competing companies, Printwell sells all of its printers through retailers, and these retailers’ costs account for a sizable proportion of the printers’ ultimate retail price.
C. Some printer manufacturers have been forced to reduce the sale price of their ink-jet printers even more than Printwell has.
D. In the past year, no competing manufacturer of ink-jet printers has had as great an increase in unit sales of printers as Printwell has.
E. In the past year, sales of Printwell’s ink-jet printers have increased more than sales of any other type of printer made by Printwell.

4. In Teruvia, the quantity of rice produced per year is currently just large enough to satisfy domestic demand. Teruvia’s total rice acreage will not be expanded in the foreseeable future, nor will rice yields per acre increase appreciably. Teruvia’s population, however, will be increasing significantly for years to come. Clearly, therefore, Teruvia will soon have to begin importing rice.
Which of the following is an assumption on which the argument depends?
A. No pronounced trend of decreasing per capita demand for rice is imminent in Teruvia.
B. Not all of the acreage in Teruvia currently planted with rice is well suited to the cultivation of rice.
C. None of the strains of rice grown in Teruvia are exceptionally high-yielding.
D. There are no populated regions in Teruvia in which the population will not increase.
E. There are no major crops other than rice for which domestic production and domestic demand are currently in balance in Teruvia.

5. For similar cars and comparable drivers, automobile insurance for collision damage has always cost more in Greatport than in Fairmont. Police studies, however, show that cars owned by Greatport residents are, on average, slightly less likely to be involved in a collision than cars in Fairmont. Clearly, therefore, insurance companies are making a greater profit on collision damage insurance in Greatport than in Fairmont.
In evaluating the argument, it would be most useful to compare
A. the level of traffic congestion in Greatport with the level of traffic congestion in Fairmont
B. the cost of repairing collision damage in Greatport with the cost of repairing collision damage in Fairmont
C. the rates Greatport residents pay for other forms of insurance with the rates paid for similar insurance by residents of Fairmont
D. the condition of Greatport's roads and streets with the condition of Fairmont's roads and streets
E. the cost of collision-damage insurance in Greatport and Fairmont with that in other cities

6. Contrary to earlier predictions, demand for sugarcane has not increased in recent years. Yet, even though prices and production amounts have also been stable during the last three years, sugarcane growers last year increased their profits by more than 10% over their previous year's level.
Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:
A. Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol. yet their overall consumption decreased.
B. Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested.
C. The price of the oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by more than 20%.
D. Many small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates.
E. Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive artificial irrigation.

7. Which of the following most logically completes the argument below?
Davison River farmers are currently deciding between planting winter wheat this fall or spring wheat next spring. Winter wheat and spring wheat are usually about equally profitable. Because of new government restrictions on the use of Davison River water for irrigation, per acre yields for winter wheat, though not for spring wheat, would be much lower than average. Therefore, planting spring wheat will be more profitable than planting winter wheat, since_______.
A. the smaller-than-average size of a winter wheat harvest this year would not be compensated for by higher winter wheat prices
B. new crops of spring wheat must be planted earlier than the time at which standing crops of winter wheat are ready to be harvested
C. the spring wheat that farmers in the Davison River region plant is well adapted to the soil of the region
D. spring wheat has uses that are different from those of winter wheat
E. planting spring wheat is more profitable than planting certain other crops, such as rye

8. Insurance Company X is considering issuing a new policy to cover services required by elderly people who suffer from diseases that afflict the elderly. Premiums for the policy must be low enough to attract customers. Therefore, Company X is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.
Which of the following strategies would be most likely to minimize Company X's losses on the policies?
A. Attracting middle-aged customers unlikely to submit claims for benefits for many years
B. Insuring only those individuals who did not suffer any serious diseases as children
C. Including a greater number of services in the policy than are included in other policies of lower cost
D. Insuring only those individuals who were rejected by other companies for similar policies
E. Insuring only those individuals who are wealthy enough to pay for the medical services

9. In the United States, of the people who moved from one state to another when they retired, the percentage who retired to Florida has decreased by three percentage points over the past ten years. Since many local businesses in Florida cater to retirees, these declines are likely to have a noticeably negative economic effect on these businesses and therefore on the economy of Florida.
Which of the following, if true, most seriously weakens the argument given?
A. People who moved from one state to another when they retired moved a greater distance, on average, last year than such people did ten years ago.
B. People were more likely to retire to North Carolina from another state last year than people were ten years ago.
C. The number of people who moved from one state to another when they retired has increased significantly over the past ten years.
D. The number of people who left Florida when they retired to live in another state was greater last year than it was ten years ago.
E. Florida attracts more people who move from one state to another when they retire than does any other state.

10. A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.
Which of the following, if true, most helps to resolve the apparent paradox?
A. Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.
B. The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.
C. The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.
D. When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.
E. The majority of the retailer’s employees’ work as cashiers, and most cashiers are paid the minimum wage.


Dear Chiranjeev,

Please provide the explanations with equations.

Thanks