Critical Reasoning

1. Technically a given category of insurance policy is under priced if, over time, claims against it plus expenses associated with it exceed total income from premiums. But premium income can be invested and will then yield returns of its own. Therefore, an under priced policy does not represent a net loss in every case.
The argument above is based on which of the following assumptions?
(A) No insurance policies are deliberately under priced in order to attract customers to the insurance company offering such policies.
(B) A policy that represents a net loss to the insurance company is not an under priced policy in every case.
(C) There are policies for which the level of claims per year can be predicted with great accuracy before premiums are set.
(D) The income earned by investing premium income is the most important determinant of an insurance company’s profits.
(E) The claims against at least some under priced policies do not require paying out all of the premium income from those policies as soon as it is earned.

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2) In several cities, the government is going ahead with ambitious construction projects despite the high office vacancy rates in those cities. The vacant offices, though available for leasing, unfortunately do not meet the requirements for the facilities needed, such as court houses and laboratories. The government, therefore, is not guilty of any fiscal wastefulness.
Which of the following is an assumption on which the argument above depends?
(A) Adaptation of vacant office space to meet the government’s requirements, if possible, would not make leasing such office space a more cost-effective alternative to new construction.
(B) The government prefers leasing facilities to owning them in cases where the two alternatives are equally cost-effective.
(C) If facilities available for leasing come very close to meeting the government’s requirements for facilities the government needs, the government can relax its own requirements slightly and consider those facilities in compliance.
(D) The government’s construction projects would not on being completed, add to the stock of facilities available for leasing in the cities concerned.
(E) Before embarking on any major construction project, the government is required by law to establish beyond any reasonable doubt that there are no alternatives that are most cost-effective.
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3) Top college graduates are having more difficulty demonstrating their superiority to prospective employers than did the top students of twenty years ago when an honors degree was distinction enough. Today’s employers are less impressed with the honors degree. Twenty years ago no more than 10 percent of a given class graduated with honors. Today, however, because of grade inflation, the honors degree goes to more than 50 percent of a graduating class. Therefore, to restore confidence in the degrees they award, colleges must take steps to control grade inflation.
Which one of the following is an assumption that, if true, would support the conclusion in the passage?
(A) Today’s students are not higher achievers than the students of twenty years ago.
(B) Awarding too many honors degrees causes colleges to inflate grades.
(C) Today’s employers rely on honors ranking in making their hiring decisions.
(D) It is not easy for students with low grades to obtain jobs.
(E) Colleges must make employers aware of the criteria used to determine who receives an honors degree

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I have no OAs for these questions. So i request experts also to jump in and provide possible solutions with explanations.