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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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| 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 |
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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| 4 |
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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| 5 |
The movement to ownership by unions is the latest step in the progression form management ownership to employee ownership. Employee ownership can save depressed and losing companies. All the following statements, if true, provide support for the claim above except:
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A. Employee-owned companies generally have higher productivity.
B. Employee participation in management raises morale.
C. Employee union ownership drives up salaries and wages.
D. Employee union ownership enables workers to share in the profits.
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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 |
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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| 8 |
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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| 9 |
Pioneers of the motor-car industry realized that if they were going to meet the growing demand for their product, they had to adapt the labor force used in the productive process. Instead of many men working to complete all the stages of one car at a time, they assigned defined tasks to each man which they would repeat on every car. Which of the following can be concluded form the passage ?
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A. Early motor car manufacturers intended to increase productivity by applying the principle of division of labor.
B. The car workers became disgruntled because they were assigned monotonous, repetitive tasks on the assembly line.
C. Economies of scale enabled early motor companies to expand.
D. A bad worker would perform the same task badly on each car, leading to many more rejects.
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| 10 |
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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