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Directions: The critical reasoning question is based on a short argument, a set of arguments, or a plan of action. For each question, select the best answer of the choices given and explain why the chosen answer is the right fit.

During an ongoing conversation between John and Akshay, John said, “A recent spate of industrial accidents has forced employers to take up more expensive insurance policies for their employees. This has meant that the cost of running businesses has gone by for these industries, and in order to keep a check on their expenses, employees have been laid off. This, in turn, has placed a greater amount of pressure on the existing workforce.”

To this Akshay replied,” Despite the reduction in employees, the cost of operating these businesses will continue to increase.”

What could be the viewpoint of Akshay while replying to John about the increasing cost of operation?


1. Since the life of a worker is at stake, the cost of insurance premiums is pretty high
2. The reason for industrial accidents is very hard to establish
3. The chances of accidents increase as workers are placed under the additional workload
4. Since most industries are not focused on innovation and streamlining, accidents are inevitable

1 Answer

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Best answer
Correct Answer - Option 3 : The chances of accidents increase as workers are placed under the additional workload

Explanation

Option 3 is the correct answer. In the given case, we need to stick to the line of reasoning adopted in the statement of John. The reasoning is:

Because of accidents, workers have to be insured with more expensive policies. Because of insurance, the cost goes up. Because of the increased cost, workers have to be let go. Because of the reduction in workers, the workload increases.

If we add option 3 to the above, that is the chances of accidents go up when the workload increases, we see that a chain reaction is set in motion as more accidents will take place and this will further increase insurance costs.

This was suggested by Akshay in his reply to John.
Hence, it is the correct viewpoint of Akshay.

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