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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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| 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 |
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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| 4 |
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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| 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 |
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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| 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 |
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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| 9 |
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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| 10 |
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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