GMAT Verbal Reasoning Practice Test 2

Question : 16 of 101

Marks: +1, -0

Because they make a small number of specialty artist’s pencils, pencil manufacturers cannot receive volume discounts on raw materials.
Lowering wages would reduce the quality of employee work and this reduced quality would lead to lowered sales.
Harper’s Pencils has taken away twenty percent of Johnson’s Supply business over the last year.
Johnson’s Supply pays its employees, on average, ten percent more than does Harper’s Pencils.
Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.

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