Question: ABC Salary Decrease

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I narrowed my choices to C & E and choose E as my final answer. Could you explain a bit more about circular reasoning and the effective/generic meaning of statement E, as i thought that explaining the situation (loosing jobs is worse) and going for cut was the strategy.
gmat-admin's picture

Here's an example of circular reasoning: Everything my mother says is true. I know this because she told me so.

So, when my mother says that everything she says is true, I'm assuming that this is true. Then I use this fact to conclude that everything she says is true.

In the given argument, the conclusion is that the 15% cut makes sense. However, we don't assume this to be true and then use this fact to conclude that the 15% cut makes sense.

Does the GMAT test circular reasoning? Are there any examples you can share with us?
gmat-admin's picture

I've never seen an official question in which circular reasoning was employed in the passage, but I have seen circular reasoning as an incorrect answer choice.

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