Method of Reasoning Practice Test

Each division of Norcrest, Inc. reported revenue growth this quarter. Yet the company as a whole posted a decline in net profit. No unusual expenses were noted this quarter. Since profits should rise when all divisions are growing, the finance department's consolidated statements must contain errors. Otherwise, it would be impossible for the overall company to fare worse while every part is doing better.

Some lawmakers propose requiring dietary supplements to carry clearer safety labels to reduce misuse. A lobbyist objects that such labels cannot prevent every instance of misuse, since some consumers will ignore them or misunderstand them. Therefore, the proposal would not reduce supplement-related harm and should be rejected. After all, unless labels eliminate the problem completely, there is no point in adopting them.