| 1 |
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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| 2 |
A local garbage disposal company increased its profitability even though it reduced its prices in order to attract new customers. This was made possible through the use of automated trucks, thereby reducing the number of workers needed per truck. The company also switched from a concentration on household hauling to a concentration on commercial hauling. As a result of its experience, company management planned to replace all their old trucks and increase the overall size of the truck fleet, doubling hauling capacity. The company's plan as outlined above, takes into consideration each of the following except:
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A. Commercial clients have more potential than household customers.
B. The demand for garbage removal services is sensitive to price.
C. Demand for garbage removal services would increase in the future.
D. Doubling of capacity would not encessitate; a substantial increase in the work force.
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| 3 |
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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| 4 |
The director of the customs service suggested that customs taxes on automobiles not be reduced as planned by the government because of the high incidence of traffic accidents last year. Which of the above statements weakens the argument above ? 1. Although the traffic accident rate last year was high, it was not appreciably higher than previous years and anyway, compulsory insurance covered most physical damage to automobiles and property. 2. A Commerce Department report showed that the demand for automobiles was highly inelastic. That is, as dealers lowered their prices, sales did not increase appreciably. 3. A study by the Economics Department at Classics University found that most traffic accidents had been caused by human error although it also concluded that an inadequate road network contributed to at least 40 percent of passenger injuries.
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A. I, but not II and not III.
B. II, but not I and not III.
C. I and III, but not II.
D. II and III, but not I.
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| 5 |
Significant beneficial effect of smoking occur primarily in the area of mental health, and the habit originates in a search for contentment. The life expectancy of our people has increased greatly in recent years; it is possible that the relaxation and contentment and enjoyment produced by smoking has lengthened many lives. Smoking is beneficial. Which of the following, it true, weaken the above conclusion ?
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A. That cigarettes are a major health hazard cannot be traced to the willfull act of any human or organization.
B. The government earns millions of dollars from the tobacco tax and tens of thousands of civilians are employed in the tobacco industry.
C. The evidence cited in the statement covers only one example of the effects of cigarette smoking.
D. No mention is made of possible harmful side-effects of smoking.
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| 6 |
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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| 7 |
Forty years after African colonies began emerging as nations, modern loyalties still often go first to the tribe. From Angola to Ethiopia, ethnic hatred has forced hundreds of thousands of people to flee their homes, making Africa the continent with the world's largest number of refugees. Which of the following statements best summarizes the above ?
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A. Africa is best characterized ethnic fractionalization.
B. Angola and Ethiopia have the worst record of inter ethnic strife in Africa.
C. Continued warfare has made Africa a nation of refugees.
D. Africa is best characterized as a federation of many states.
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| 8 |
In August 1980, according to a new your. Times/CBS news poll, 36 percent of the voters called themselves Republicans or said they were independents leaning toward being Republicans. In November 1984, the Republican figure rose to 47 percent. But in the latest Times/CBS survey, the Republicans were down to 38 percent. Therefore, the Democrats are likely to win the next election. Which of the following, if true, would most seriously weaken the above conclusion ?
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A. Republicans were a minority in 1984, but a Republican president was elected.
B. People tend to switch their votes at the last minute.
C. People vote for the best candidate, not for a political party.
D. No one can predict how people will vote.
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| 9 |
Prompted by proposal to convert a shipyard into a complex of condominiums with full-service marina and boat repair center and by concern about the proposal from local residents, baymen, and environmentalists, the town is considering a one-year building moratorium for the water front area. Which of the following, if true, would most seriously weaken opposition to the complex ?
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A. Condominiums would sell for $350,000 each.
B. There is a large demand for boat repair services.
C. A growing population results in the closure of shellfish.
D. There are already 1,200 moorings on the waterfront.
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| 10 |
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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