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GMATLA-AA-43

The following appeared as part of an article in a trade publication:

“Stronger laws are needed to protect new kinds of home-security systems from being copied and sold by imitators. With such protection, manufacturers will naturally invest in the development of new home-security products and production technologies. Without stronger laws, therefore, manufacturers will cut back on investment. From this will follow a corresponding decline not only in product quality and marketability, but also in production efficiency, and thus ultimately a loss of manufacturing jobs in the industry.”


GMATLA-AA-42

The following appeared as part of an article in a weekly newsmagazine:

“The country of Sacchar can best solve its current trade deficit problem by lowering the price of sugar, its primary export. Such an action would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would increase, and this increase would substantially reduce Sacchar’s trade deficit.”


GMATLA-AA-41

The following appeared in an Avia Airlines departmental memorandum:

“On average, 9 out of every 1,000 passengers who traveled on Avia Airlines last year filed a complaint about ourbaggage-handling procedures. This means that although some 1 percent of our passengers were unhappy with those procedures, the overwhelming majority were quite satisfied with them; thus it would appear that a review of the procedures is not important to our goal of maintaining or increasing the number of Avia’s passengers.”


GMATLA-AA-40

The following appeared in the editorial section of a campus newspaper:

“Because occupancy rates for campus housing fell during the last academic year, so did housing revenues. To solve the problem, campus housing officials should reduce the number of available housing units, thereby increasing the occupancy rates. Also, to keep students from choosing to live off-campus, housing officials should lower the rents, thereby increasing demand.”


GMATLA-AA-39

The following appeared as part of an article in the business section of a local newspaper:

“Motorcycle X has been manufactured in the United States for more than 70 years. Although one foreign company has copied the motorcycle and is selling it for less, the company has failed to attract motorcycle X customers—somesay because its product lacks the exceptionally loud noise made by motorcycle X. But there must be some other explanation. After all, foreign cars tend to be quieter than similar American-made cars, but they sell at least as well. Also, television advertisements for motorcycle X highlight its durability and sleek lines, not its noisiness, and the ads typically have voice-overs or rock music rather than engine-roar on the sound track.”


GMATLA-AA-38

The following appeared in an article in a college departmental newsletter:

“Professor Taylor of Jones University is promoting a model of foreign language instruction in which students receive 10 weeks of intensive training, then go abroad to live with families for 10 weeks. The superiority of the model, Professor Taylor contends, is proved by the results of a study in which foreign language tests given to students at 25 other colleges show that first-yearforeign language students at Jones speak more fluently after only 10 to 20 weeks in the program than do nine out of 10 foreign language majors elsewhere at the time of their graduation.”


GMATLA-AA-37

The following appeared as part of a recommendation from the financial planning office to the administration of Fern Valley University:

“In the past few years, Fern Valley University has suffered from a decline in both enrollments and admissions applications. The reason can be discovered from our students, who most often cite poor teaching and inadequate library resources as their chief sources of dissatisfaction with Fern Valley. Therefore, in order to increase the number of students attending our university, and hence to regain our position as the most prestigious university in the greater Fern Valley metropolitan area, it is necessary to initiate a fund-raising campaign among the alumni that will enable us to expand the range of subjects we teach and to increase the size of our library facilities.”


GMATLA-AA-36

The following appeared as part of a plan proposed by an executive of the Easy Credit Company to the president:

“The Easy Credit Company would gain an advantage over competing credit card services if we were to donate a portion of the proceeds from the use of our cards to a well-known environmental organization in exchange for the use of its symbol or logo on our card. Since a recent poll shows that a large percentage of the public is concerned about environmental issues, this policy would attract new customers, increase use among existing customers, and enable us to charge interest rates that are higher than the lowest ones available.”


GMATLA-AA-35

The following appeared in an editorial from a magazine produced by an organization dedicated to environmental protection:

“In order to effectively reduce the amount of environmental damage that industrial manufacturing plants cause, those who manage the plants must be aware of the specific amount and types of damage caused by each of their various manufacturing processes. However, few corporations have enough financial incentive to monitor this information. In order to guarantee that corporations reduce the damage caused by their plants, the federal government should require every corporation to produce detailed annual reports on the environmental impact of their manufacturing process, and the government should impose stiff financial penalties for failure to produce these reports.”


GMATLA-AA-34

The following is part of a business plan being discussed at a board meeting of the Perks Company:

“It is no longer cost-effective for the Perks Company to continue offering its employees a generous package of benefits and incentives year after year. In periods when national unemployment rates are low, Perks may need to offer such a package in order to attract and keep good employees, but since national unemployment rates are now high, Perks does not need to offer the same benefits and incentives. The money thus saved could be better used to replace the existing plant machinery with more technologically sophisticated equipment, or even to build an additional plant.”


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