| 1 |
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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| 2 |
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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| 3 |
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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| 4 |
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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| 5 |
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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| 6 |
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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| 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 |
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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| 9 |
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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| 10 |
Farmers in the North have observed that heavy frost is usually preceded by a full moon somehow generates the frost. Which of the following, if true, would weaken the farmers conviction ?
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A. The temperature must fall below 10 degrees Celsius (50 degrees Fahrenheit) for frost to occur.
B. Absence of a cloud cover cools the ground which causes frost.
C. Farmers are superstitious.
D. No one has proven that the moon causes frost.
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