Some people believe that saying that an organization is hierarchical says everything there is to say about how that organization operates. All bureaucratically controlled organizations are hierarchical. Yet the Public Works Department, although bureaucratically controlled, operates quite differently than most other bureaucratically controlled organizations operate.

Summary

The stimulus can be diagrammed as follows:

Notable Valid Inferences

The Public Works Department is hierarchical. A company being hierarchical does not reveal everything about the nature of that company’s operations—there are differences in how hierarchical companies operate.

A
The Public Works Department operates more like a nonbureaucratically controlled organization than like a bureaucratically controlled organization.

This could be false. It could be that the Public Works Department operates differently in a manner not characteristic to nonbureaucratic or bureaucratic organizations. The stimulus does not offer enough information for us to know what “differently” means in practice.

B
Any organization that is hierarchical is bureaucratically controlled.

This could be false. We know all bureaucratically controlled organizations are hierarchical, but we cannot assume this relationship goes both ways. As shown in the diagram, we assume it is a one-way relationship.

C
From the fact that a given organization is hierarchical nothing can reliably be concluded about how that organization operates.

This could be false. There may be some information one can gather from the fact that an organization is hierarchical—maybe all hierarchical organizations share certain qualities. We know, however, that there are some qualities they do not all share.

D
Not all hierarchical organizations operate in the same way.

This must be true. We know the Public Works Department is hierarchical and it operates differently from other hierarchical organizations. Therefore, (D) must be true.

E
Whether or not an organization is bureaucratically controlled has nothing to do with how that organization operates.

This could be false. The stimulus does not suggest a company’s operations are unaffected by whether it is bureaucratically controlled or not. The stimulus only says that a company being hierarchical doesn’t tell us everything there is to know about its operations.


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Because of the recent recession in Country A, most magazines published there have experienced decreases in advertising revenue, so much so that the survival of the most widely read magazines is in grave doubt. At the same time, however, more people in Country A are reading more magazines than ever before, and the number of financially successful magazines in Country A is greater than ever.

"Surprising" Phenomenon
How is the survival of Country A’s most widely read magazines in doubt when readership numbers and the number of financially successful magazines are greater than ever?

Objective
The right answer will be a hypothesis that explains a key difference between the struggling, widely read magazines and the financially successful ones. This difference will explain how it is possible for some magazines to financially struggle while others succeed in the same economic environment.

A
Most magazines reduce the amount they charge for advertisements during a recession.
(A) provides support for the fact that most magazines have experienced decreases in advertising revenue, but it does not offer insight into how, despite this, the number of financially successful magazines is higher than ever.
B
The audience for a successful television show far exceeds the readership of even the most widely read magazine.
The stimulus is solely focused on magazines. The audience size of a successful television show is not relevant to the stimulus.
C
Advertising is the main source of revenue only for the most widely read magazines; other magazines rely on circulation for their revenue.
The difference in the magazines’ revenue models explains the discrepancy. While the most widely read magazines depend on advertising revenue (which has dried up due to the recession), other magazines are able to profit from the country’s unprecedentedly high readership numbers.
D
Because of the recession, people in Country A have cut back on magazine subscriptions and are reading borrowed magazines.
People cutting back on magazine subscriptions would likely affect all magazines the same. (D) does not explain why some magazines are succeeding while others are failing.
E
More of the new general interest magazines that were launched this year in Country A have survived than survived in previous years.
(E) deepens the discrepancy; it does not help to resolve it. It highlights how one type of magazine is successful while failing to offer insight into why some magazines are succeeding as the most widely read ones fail.

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