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In winning its bitter, protracted battle to acquire Blue Industries, Inc., Belle industries has fulfilled its goal to lessen its reliance on tobacco holdings, while the $5.2 billion deal may spur more takeover activity in the insurance industry, analysts said. Which of the following can be inferred from the passage?
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A. Blue Industries is in the tobacco industry.
B. Belle industries is in the insurance business.
C. Blue Industries is in the insurance business.
D. More divestment takes place in the tobacco industry than in the insurance industry.
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| 2 |
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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| 3 |
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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| 4 |
In the human body, platelets, promote blood clotting by clumping together. Aspirin has been found to prevent clotting by making platelets less sticky. Research has now shown that heart attacks and strokes caused by blood clots could be avoided by taking one aspirin a day. Statistics show that the incidence of second heart attacks Unfortunately, the drug has several unpleasant side effects, including nausea, gastric bleeding, and, in severe cases, shock. In children, it has been linked to Reye Syndrome, a rare, but occasionally fatal, childhood illness. One balance, however, for men aged 40 and over, an aspirin a day may present an excellent prophylactic measure for a disease that affects 1.5 million Americans yearly and claims the lives of about 540,000. Which of the following conclusions can most properly be drawn from the information above ?
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A. All people should take an aspirin a day to prevent heart attacks.
B. Painkillers prevent heart attacks.
C. Smokers can safely continue smoking, provided that they take at least one aspirin a day.
D. The majority of people suffering second subsequent cardiac arrests could have been saved by taking an aspirin a day.
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| 5 |
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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| 6 |
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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| 7 |
The states of New York, Ohio, Pennsylvania, and California provide extensive free higher education to their residents. Threes states are representative of different geographic areas of the united states. There is little reason why most states cannot provide the same service to their residents. Which of the following, it true, would weaken the above argument ?
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A. Free education is not guaranteed by the constitution.
B. New York, Ohio, Pennsylvania, and California have more qualified high school graduates than other states.
C. Most other states do not have the tax base that new york, ohio, Pennsylvania, and California have.
D. Other states do not have as many high school graduates.
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| 8 |
Buy Plenty, a supermarket chain, had successfully implemented an in store promotional campaign based on video messages dashed on a large screen. The purpose of the campaign was to motivate customers to purchase products which they had not planned to buy before they entered to store. The sales manager of Build-It Inc., a chain of do-it-yourself hardware stores, saw the campaign and plans to introduce it in Build-It locations. The sales manager's plan assumes that
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A. supermarket and hardware products are the same
B. products cannot be sold successfully without a video sales campaign
C. Supermarket chains do not sell hardware products
D. consumer decision making to buy products does not differ substantially when it comes to both supermarket and hardware products
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| 9 |
If we are doomed to have local drug rehabilitation centers - and society has determined that we are - then society ought to pay for them. Which of the following, if true, would weaken the above argument ?
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A. Drug rehabilitation centers are too expensive to be locally funded.
B. Many neighborhood groups oppose rehabilitation centers.
C. Drug rehabilitation centers are expensive to maintain.
D. Drug addicts may be unwilling to receive treatment.
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| 10 |
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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