| 1 |
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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| 2 |
Many countries are facing a potential crisis in 20 to 30 years time. The ratio of pensioners to workers will be changing drastically with a declining birth rate, with more lengthy education of the young, and with a reduced working life. In general, the number of people paying into pension schemes is decreasing all the time. Meanwhile, with increased health care and living standards, more people are living long enough to draw their pension funds. A controversial solution to this problem has been proposed in Germany-changing the age of retirement, for both men and women, from the current qualifying age of 63 for men and 60 for women. A radical, but socially acceptable, solution to this problem must be found. If this is not done, it is predicted that by the year 2050, one person in three will be 65 or over and the projected work force will be unable to support pensions. Assuming the following were all socially acceptable, which one would not improve the situation in the future ?
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A. Lower the retirement age.
B. Decrease the school-leaving age.
C. Impose larger contributions on employees and employers.
D. Cut pensions in half.
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| 3 |
Inflation rose by 5.1 % over the second quarter, up form 4.1 % during the first quarter of the year and higher than the 3.3% record during the same time last year. However, the higher price index did not seem to alarm Wall street, as stock prices remained steady. Which of the following, if true, could explain the reaction of Wall Street ?
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A. Stock prices were steady because of a fear that inflation would continue.
B. The President announced that he was concerned about rising inflation.
C. Economists warned that inflation would persist.
D. Much of the quarterly increase in the price level was due to a summer droughts effect on food prices.
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| 4 |
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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| 5 |
The burning of coal, oil, and other combustible energy sources produces carbon dioxide, a natural constituent of the atmosphere. Elevated levels of carbon dioxide are thought to be responsible for half the greenhouse effect. Enough carbon dioxide has been sent into the atmosphere already to cause a significant temperature increase. Growth in industrial production must be slowed, or production processes must be changed. Which of the following, it true, would tend to weaken the strength of the above conclusion ?
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A. Many areas of the world are cold anyway, so a small rise in temperature would be welcome.
B. Carbon dioxide is bad for the health.
C. Most carbon dioxide is emitted by automobiles.
D. Industry is switching over to synthetic liquid fuel extracted form coal.
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| 6 |
Typically, the entrepreneur is seen as an individual who owns and operates a small business. But, simply to own and operate a small business-or even a big business-does not make someone an entrepreneur. If this person is a true entrepreneur, then new products are being created, new ways of providing services are being implemented. Which of the following conclusions can best be drawn from the above passage?
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A. An owner of large business may be an entrepreneur.
B. Someone who develops an enterprise may be considered an entrepreneur.
C. Entrepreneurs do not own and operate small businesses.
D. Entrepreneurs are the main actors in economic growth
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| 7 |
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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| 8 |
During the incumbent president's term of office he succeeded in limiting annual increases in the defense budget by an average of 5 percent. His predecessors experienced annual increases of 8 percent. Therefore, the incumbent president should be given credit for the downturn in defense outlays. Which of the following statements, if true would most seriously weaken the above conclusion ?
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A. Some generals have claimed that the country's defense has weakened in the past year.
B. More soldiers were drafted during the former president's term of office.
C. The incumbent president advocates peaceful resolution of international disputes.
D. The average annual inflation rate during the incumbent president's term was 4 percent, while during his predecessor's term it was 10 percent
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| 9 |
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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| 10 |
Ira is taller than Sam. Elliot is taller than Harold. Harold is shorter than Gene. Sam and Gene are of the same height. If the above is true, which of the following conditions, must also be true?
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A. Elliot is taller than Gene
B. Elliot is taller than Ira
C. Sam is shorter than Elliot
D. Ira is taller than Harold
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