| 1 |
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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| 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 |
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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| 4 |
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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| 5 |
An economist was quoted as saying that the Consumer Price Index (CPI) will go up next month because of a recent increase in the price of fruit and vegetables. Which of the following cannot be inferred from the statement ?
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A. The cost of fruits and vegetables has risen sharply.
B. Consumers have decreased their consumption of fruits and vegetables.
C. The cost of fruit and vegetables is a major item in the CPI.
D. Food cost changes are reflected quickly in the CPI.
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| 6 |
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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| 7 |
Opponents of the new legislation could defend themselves against the author's strategy by arguing that:
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A. the fact that past trade legislation improved the trade balance does not mean that the present bill will do the same.
B. economists are not always right.
C. the united states had a trade deficit both in the 1930s and at the time of the new bill.
D. the new law is not as strong as the 1930s bill.
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| 8 |
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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| 9 |
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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| 10 |
Every town with a pool hall has its share of unsavory characters. This is because the pool hall attracts gamblers and all gamblers are unsavory. Which of the following, if true, cannot be inferred from the above ?
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A. All gamblers are unsavory,
B. All pol halls attract gamblers.
C. Every town has unsavory characters.
D. All gamblers are attracted by pool halls.
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