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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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| 2 |
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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| 3 |
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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| 4 |
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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| 5 |
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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| 6 |
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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| 7 |
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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| 8 |
In a world of many trading countries, the trade between two countries need not be balanced for the trade of each to be in global balance. Differing demands and productive capabilities among countries will cause a specific country to have trade deficits with some countries and surpluses with other countries. Which of the following conclusions best summarizes the passage above ?
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A. A country trade will always be in balance even though it runs a deficit with a single country.
B. A country trade deficits and surpluses with other countries always balance out.
C. A country global trade balance is a sign of strength or weakness.
D. Countries should not be concerned if they have trade deficits because they will balance out in the long run.
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| 9 |
Professor Bilal had the task of giving grades (ranging from A - D in descending value) to her 100 students, based upon the marks they received in three examinations in which the passing mark was 50%. She was instructed to follow the following criteria: i. All students that scored between 90 and 100% in any two examinations could receive an A grade. ii. Students that came in the top decile overall were to be awarded an A. iii. Notwithstanding I and II, if any student failed an exam, the highest he or shed could get was a b. iv. The top 20 students in the whole year, when the overall exam percentages were averaged, could receive an A. Given the above criteria, which of the following in the absence of further information, would definitely not be permissible ?
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A. A. Brown, who got 95% in Chemistry and 95% in Biology, received a B grade.
B. B. White, who was first in Physics and got 96% in History, received a B grade.
C. C. Green failed English, but because he ranked ninth overall out of the 100 students, he was awarded an A grade.
D. D. Black was given an A after she came twentieth out of the 100 students and failed to get above 90% in any of the three examinations.
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| 10 |
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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