Application questions on the GMAT go one step further than Inference questions, asking you to apply what you have learned from the passage to a different or hypothetical situation. They are similar to New Situation questions!
Straight from the horse’s mouth, the Official Guide to the GMAT outlines 4 possible ways Application questions can test you (starting on p.361), and points out the importance difference between Inference and Application questions. To solve Application questions, you must recognize the underlying features of what’s in the passage when presented to you in new contexts.
Check out the video question on #9 on this Learnboard. Notice the first question the instructor asks in the video is, “where do we read about Shakespeare apologists?” Use the key phrases from the question stem to locate the relevant info in the passage. You shouldn’t have to re-read more than 1-2 sentences for each Application question.