| 1 |
The President lobbied for passage of his new trade bill which would liberalize trade with industrialized countries such as Japan, members of the European Community, and Canad. Each of the following, if true, could account for the above, except:
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A. The President is up for re-election and needs to show results.
B. Labour unions have petitioned the President to provide more local jobs.
C. The trade agreement could bring a quid pro quo on pending negotiations.
D. Economists claimed that the passage of the bill would increase the country trade deficit.
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| 2 |
Average family income is right where it was 20 years ago, even though in most families these days, husbands and wives are working. The above statement implies all of the following, except:
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A. Even though nominal family income may have increased, inflation has risen at an equal rate.
B. More husbands and wives are working today than 20 years ago.
C. It was more prevalent for one spouse-to-work 20 yeas ago than today.
D. Wives earn more than husbands today.
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| 3 |
The movement to ownership by unions is the latest step in the progression form management ownership to employee ownership. Employee ownership can save depressed and losing companies. All the following statements, if true, provide support for the claim above except:
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A. Employee-owned companies generally have higher productivity.
B. Employee participation in management raises morale.
C. Employee union ownership drives up salaries and wages.
D. Employee union ownership enables workers to share in the profits.
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| 4 |
Ali is a terrible driver. He has had at least five traffic violations, int he past year. Which of the following can be said about the above claim ?
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A. This is an example of an argument that is directed against the source of the claim rather than the claim itself.
B. The statement is fallacious because it contains an illegitimate appeal to authority.
C. The above argument obtains its strength from a similarity of two compared situations.
D. The argument is built upon an assumption that is not stated but rather is concealed.
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| 5 |
Contrary to charges made by opponents of the new trade bill, the bill's provisions for taking action against foreign countries that place barriers against American exports, is justified. Opponents should take not that restrictive trade legislation in the 1930s succeeded in improving the U.S. trade balance even though economists were against it. The author's method of rebutting opponents of the new trade bill is to
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A. attack the patriotism of its opponents.
B. attack the opponents characters rather than their claims.
C. imply an analogy between the new trade bill and previous trade legislation.
D. suggest that economists were against both pieces, of legislation.
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| 6 |
Pioneers of the motor-car industry realized that if they were going to meet the growing demand for their product, they had to adapt the labor force used in the productive process. Instead of many men working to complete all the stages of one car at a time, they assigned defined tasks to each man which they would repeat on every car. Which of the following can be concluded form the passage ?
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A. Early motor car manufacturers intended to increase productivity by applying the principle of division of labor.
B. The car workers became disgruntled because they were assigned monotonous, repetitive tasks on the assembly line.
C. Economies of scale enabled early motor companies to expand.
D. A bad worker would perform the same task badly on each car, leading to many more rejects.
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| 7 |
Most large retail stores hold sales in the month of January. The original idea of price reduction campaigns in January became popular when it was realized that sales or products would generally slow down following the Christmas rush, were it no for some incentive. The lack of demand could be solved by the simple solution of reducing prices. There is now an increasing tendency among major department stores in large urban centers to have their January sales being before Christmas, some time before the end of the calendar year. The idea behind this trend is to endeavor to sell the maximum amount of stock at a profit, even if that may not be at the maximum profit. Which of the following conclusions cannot be drawn from the above ?
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A. The incidence of early January sales results in the lower holdings of stocks with the corollary of lower stock holding costs.
B. Demand is a function of price; as you lower price, demand increases.
C. Major stores seem to think it makes sense to have to January sales campaigns pre-Christmas.
D. It is becoming less popular to star the January sales in the New Year.
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| 8 |
During 1999, advertising expenditures on canned food products increased by 20 percent, while canned food consumption rose by 25 percent. Each of the following, if true, could help explain the increase in food consumption except:
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A. Advertising effectiveness increased.
B. Canned food prices decreased relative to substitutes.
C. Canned food products were available in more stores.
D. Can opener production doubled.
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| 9 |
You have three boxes, each containing two balls, one containing a black pair; one, a white pair; and third, one white ball and one black ball. On each box are pictures of two balls - either two black ones, two white ones, or one white and one black. You are told that the markings on the boxes are all wrong. You are asked to ascertain the colors of the balls contained in each box. Which of the following statements can be inferred form the above ?
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A. You can take out one ball from the box marked with two black balls and, without looking at the second ball, know that each box actually contains.
B. You can take out one ball from the box marked with two white balls and, without looking at the second ball, know what each box actually contains.
C. You can take out one ball from the box marked with one while ball and one black ball and, without looking at the second ball, know what each box contains.
D. You cannot know which balls are contained in which box until you take a ball out of more than one box.
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| 10 |
The Monopoly is characterized by absence of or decline in competition. The ABC Company realizes that its operations are in competitive industries. Which of the following conclusions may be inferred form the above ?
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A. ABC market is not monopolistic.
B. Monopoly is defined as one seller in a market.
C. The ABC Company has no domestic competitors.
D. The ABC company is publicly owned.
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