| 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 |
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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| 3 |
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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| 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 |
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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| 6 |
Many of the convenience foods on the market today, like dry cereals, have less nutrients than natural foods, which were dominant a decade or two ago. Many nutritionists claim that dry cereal gives less nourishment than natural foods like eggs or bacon. Opponents of the nutritionists views state that examination of grade-school students show less nutritional deficiency than in their parents time. Which of the following, if true, would tend to strengthen the opponents view ?
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A. Grade-school children reported eating no breakfast at all.
B. Fewer convenience foods were available to the parents.
C. Adults claim to eat convenience foods as well as natural foods.
D. Convenience foods can be digested just as quickly as natural foods.
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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 |
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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| 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 |
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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