| 1 |
Average family income is right where it was 20 years ago, even though in most families these days, husbands and wives are working. The above statement implies all of the following, except:
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A. Even though nominal family income may have increased, inflation has risen at an equal rate.
B. More husbands and wives are working today than 20 years ago.
C. It was more prevalent for one spouse-to-work 20 yeas ago than today.
D. Wives earn more than husbands today.
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| 2 |
Most large retail stores hold sales in the month of January. The original idea of price reduction campaigns in January became popular when it was realized that sales or products would generally slow down following the Christmas rush, were it no for some incentive. The lack of demand could be solved by the simple solution of reducing prices. There is now an increasing tendency among major department stores in large urban centers to have their January sales being before Christmas, some time before the end of the calendar year. The idea behind this trend is to endeavor to sell the maximum amount of stock at a profit, even if that may not be at the maximum profit. Which of the following conclusions cannot be drawn from the above ?
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A. The incidence of early January sales results in the lower holdings of stocks with the corollary of lower stock holding costs.
B. Demand is a function of price; as you lower price, demand increases.
C. Major stores seem to think it makes sense to have to January sales campaigns pre-Christmas.
D. It is becoming less popular to star the January sales in the New Year.
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| 3 |
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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| 4 |
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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| 5 |
Contrary to charges made by opponents of the new trade bill, the bill's provisions for taking action against foreign countries that place barriers against American exports, is justified. Opponents should take not that restrictive trade legislation in the 1930s succeeded in improving the U.S. trade balance even though economists were against it. The author's method of rebutting opponents of the new trade bill is to
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A. attack the patriotism of its opponents.
B. attack the opponents characters rather than their claims.
C. imply an analogy between the new trade bill and previous trade legislation.
D. suggest that economists were against both pieces, of legislation.
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| 6 |
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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| 7 |
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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| 8 |
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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| 9 |
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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| 10 |
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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