| 1 |
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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| 2 |
During 1999, advertising expenditures on canned food products increased by 20 percent, while canned food consumption rose by 25 percent. Each of the following, if true, could help explain the increase in food consumption except:
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A. Advertising effectiveness increased.
B. Canned food prices decreased relative to substitutes.
C. Canned food products were available in more stores.
D. Can opener production doubled.
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| 3 |
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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| 4 |
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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| 5 |
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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| 6 |
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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| 7 |
Professor Akram told his class that the method of student evaluation of teachers is not a valid measure of teaching quality. Students should fill out questionnaires at the end of the semester when courses have been completed. Which of the following, if true, provides support for Professor Akram proposal ?
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A. Professor Akram received low ratings from his students.
B. Students filled out questionnaires after the midterm exam.
C. Students are interested in teacher evaluation.
D. Teacher are not obligated to use the survey results.
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| 8 |
Forty years after African colonies began emerging as nations, modern loyalties still often go first to the tribe. From Angola to Ethiopia, ethnic hatred has forced hundreds of thousands of people to flee their homes, making Africa the continent with the world's largest number of refugees. Which of the following statements best summarizes the above ?
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A. Africa is best characterized ethnic fractionalization.
B. Angola and Ethiopia have the worst record of inter ethnic strife in Africa.
C. Continued warfare has made Africa a nation of refugees.
D. Africa is best characterized as a federation of many states.
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| 9 |
Ever since I arrived at the college last week, I ve been shocked by the poor behavior of students and the unfriendly attitude of the towns-people, but the professors are very erudite and genuinely helpful. Still, I wonder if i should have come here in the first place. Which of the following, if true, would weaken the above conclusion ?
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A. Professors are not always helpful to students.
B. The college numbers over 50,000 students.
C. The college is far from the student's home.
D. Not all professors have doctorates.
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| 10 |
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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