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GMAT - Critical Reasoning - Critical Reasoning - Premises, conclusions, assumptions, inferences

Which of the following is an assumption on which the above argument depends?

Temporary-services firms supply trained workers to other companies on a temporary basis. Temporary-services firms lose business when the economy shows signs of beginning to weaken. They gain business when the economy begins to recover but often lose business again when the economy stabilizes. These firms have begun to gain business in the present weak economy. The economy, therefore, must be beginning to recover.

Which of the following is an assumption on which the above argument depends?

A) Temporary-services firms are more likely to regain old clients than to acquire new ones when the economy begins to recover
B) Temporary-services firms do not gain business when an already weak economy worsens
C) New companies do not often hire temporary help until they have been in business for some time
D) Companies that use workers from temporary-services firms seldom hire those workers to fill permanent positions
E) Temporary-services firms can most easily find qualified new workers when the economy is at its weakest

The conclusion states that the firms have begun to gain business in the present weak economy which means the economy is beginning to recover. This is based on the assumption that the business will only get better when weak economy recovers and business will not happen when the weak economy worsens further.

A) Incorrect as regaining old clients do not tell us anything about the change in the economy.
B) Correct as we know that business goes down in a weak economy and when an already weak economy worsens then business will be impacted negatively.
C) Incorrect as this answer choice does not say anything about the economy.
D) Incorrect as this option is out of context.
E) Incorrect even though there is a possibility of this, but it does not tell us anything about a changing economy. 

The conclusion states that the firms have begun to gain business in the present weak economy which means the economy is beginning to recover. This is based on the assumption that the business will only get better when weak economy recovers and business will not happen when the weak economy worsens further.

A) Incorrect as regaining old clients do not tell us anything about the change in the economy.
B) Correct as we know that business goes down in a weak economy and when an already weak economy worsens then business will be impacted negatively.
C) Incorrect as this answer choice does not say anything about the economy.
D) Incorrect as this option is out of context.
E) Incorrect even though there is a possibility of this, but it does not tell us anything about a changing economy.