Standard Inference Logic Practice Test

If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.

Which one of the following conclusions can be logically drawn from the statements above?

The price of health insurance as a percentage of an individual’s overall monthly income does not necessarily indicate quality of care. If it did, individuals who spent a greater percentage of their income on health insurance would receive better quality of care, or vice versa.

If the statements above are all true, which of the following can be properly inferred on the basis of them?