Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
May 0510:00 AM PDT
-11:00 AM PDT
GMAT Inequalities is a high-frequency topic in GMAT Quant, but many students struggle because the concepts behave differently from standard algebra. Understanding the right rules, patterns, and edge cases can significantly improve both speed and accuracy.- May 06
08:30 AM PDT
-09:30 AM PDT
In Episode 3 of our GMAT Ninja Critical Reasoning series, we tackle Discrepancy, Paradox, and Explain an Oddity questions. You know the feeling: the passage gives you two facts that seem completely contradictory.... - May 08
08:00 AM PDT
-08:30 AM PDT
Join the special YouTube live-stream for selecting the winners of GMAT Club MBA Scholarships sponsored by Juno live. Watch who gets these coveted MBA scholarships offered by GMAT Club and Juno.
14 Aug 2025, 08:53
Kudos
Bookmarks
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.
The company’s argument depends on which of the following assumptions?
A. Without the proposed hub, most shipments would bypass the remote region entirely.
B. The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
C. The regional government would only share bonuses if the new hub directly benefited local businesses.
D. Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
E. Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
The company’s argument depends on which of the following assumptions?
A. Without the proposed hub, most shipments would bypass the remote region entirely.
B. The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
C. The regional government would only share bonuses if the new hub directly benefited local businesses.
D. Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
E. Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
14 Aug 2025, 08:53
Kudos
Bookmarks
Official Solution:
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.
The company’s argument depends on which of the following assumptions?
A. Without the proposed hub, most shipments would bypass the remote region entirely.
B. The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
C. The regional government would only share bonuses if the new hub directly benefited local businesses.
D. Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
E. Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
(A): This is an economic argument that plays on the evaluation of the proposal. The local government may say that the hub is not adding value and thus not agree to share profits in the goods are already passing through the region. However, the word entirely makes it a failed and too extreme assumption. We can have some goods pass through the region and this plan would still work, we do not have to ensure that all goods do not pass entirely.
(B) (Correct): This directly addresses the critical assumption: the company’s argument hinges on bonuses being awarded for all shipments passing through, not only those that end in the region.
(C): Local business benefits are irrelevant; the argument is specifically about increased shipment volume and related bonuses, not local business impact.
(D): Though relevant to practicality, the argument about profiting from bonus volume doesn't strictly depend on avoiding delays, delays might impact attractiveness but not bonus calculation logic.
(E): Current local shipment proportions are irrelevant. The key issue is increasing the total shipment volume passing through the region, not the current volume delivered there.
Answer: B
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.
The company’s argument depends on which of the following assumptions?
A. Without the proposed hub, most shipments would bypass the remote region entirely.
B. The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
C. The regional government would only share bonuses if the new hub directly benefited local businesses.
D. Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
E. Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
(A): This is an economic argument that plays on the evaluation of the proposal. The local government may say that the hub is not adding value and thus not agree to share profits in the goods are already passing through the region. However, the word entirely makes it a failed and too extreme assumption. We can have some goods pass through the region and this plan would still work, we do not have to ensure that all goods do not pass entirely.
(B) (Correct): This directly addresses the critical assumption: the company’s argument hinges on bonuses being awarded for all shipments passing through, not only those that end in the region.
(C): Local business benefits are irrelevant; the argument is specifically about increased shipment volume and related bonuses, not local business impact.
(D): Though relevant to practicality, the argument about profiting from bonus volume doesn't strictly depend on avoiding delays, delays might impact attractiveness but not bonus calculation logic.
(E): Current local shipment proportions are irrelevant. The key issue is increasing the total shipment volume passing through the region, not the current volume delivered there.
Answer: B
