A Cognitive Abilities Test (CAT) measures how people think and learn by assessing their ability to solve problems through verbal reasoning questions aimed at different age groups. Verbal reasoning refers to understanding language through comprehension, reasoning, logic, and problem solving. An example for 8-10 year olds asks which word is the odd one out between 'rock', 'stone', 'pebble', and 'marble'. The document provides examples of verbal reasoning questions and answers for children to practice these skills.