Question # 1

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 ?

Choose an answer

Free education is not guaranteed by the constitution.

New York, Ohio, Pennsylvania, and California have more qualified high school graduates than other states.

Most other states do not have the tax base that new york, ohio, Pennsylvania, and California have.

Other states do not have as many high school graduates.

Quality education cannot be free; it must be paid for

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?

Choose an answer

An owner of large business may be an entrepreneur.

Someone who develops an enterprise may be considered an entrepreneur.

Entrepreneurs do not own and operate small businesses.

Entrepreneurs are the main actors in economic growth

Entrepreneurs are inventors.

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 ?

Choose an answer

All gamblers are unsavory,

All pol halls attract gamblers.

Every town has unsavory characters.

All gamblers are attracted by pool halls.

An explanation of what attracts gamblers.

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 ?

Choose an answer

Early motor car manufacturers intended to increase productivity by applying the principle of division of labor.

The car workers became disgruntled because they were assigned monotonous, repetitive tasks on the assembly line.

Economies of scale enabled early motor companies to expand.

A bad worker would perform the same task badly on each car, leading to many more rejects.

The new production process enabled certain car workers to become specialists in the part of the process to which they were assigned.

Buy Plenty, a supermarket chain, had successfully implemented an in store promotional campaign based on video messages dashed on a large screen. The purpose of the campaign was to motivate customers to purchase products which they had not planned to buy before they entered to store. The sales manager of Build-It Inc., a chain of do-it-yourself hardware stores, saw the campaign and plans to introduce it in Build-It locations.

The sales manager's plan assumes that

Choose an answer

supermarket and hardware products are the same

products cannot be sold successfully without a video sales campaign

Supermarket chains do not sell hardware products

consumer decision making to buy products does not differ substantially when it comes to both supermarket and hardware products

in-store campaigns are more effective than out-of-store advertising and sales promotion

In the human body, platelets, promote blood clotting by clumping together. Aspirin has been found to prevent clotting by making platelets less sticky. Research has now shown that heart attacks and strokes caused by blood clots could be avoided by taking one aspirin a day. Statistics show that the incidence of second heart attacks

Unfortunately, the drug has several unpleasant side effects, including nausea, gastric bleeding, and, in severe cases, shock. In children, it has been linked to Reye Syndrome, a rare, but occasionally fatal, childhood illness.

One balance, however, for men aged 40 and over, an aspirin a day may present an excellent prophylactic measure for a disease that affects 1.5 million Americans yearly and claims the lives of about 540,000.

Which of the following conclusions can most properly be drawn from the information above ?

Choose an answer

All people should take an aspirin a day to prevent heart attacks.

Painkillers prevent heart attacks.

Smokers can safely continue smoking, provided that they take at least one aspirin a day.

The majority of people suffering second subsequent cardiac arrests could have been saved by taking an aspirin a day.

Aspirin can be used to reduced mortality rates who have already suffered heart attacks.

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:

Choose an answer

Employee-owned companies generally have higher productivity.

Employee participation in management raises morale.

Employee union ownership drives up salaries and wages.

Employee union ownership enables workers to share in the profits.

Employee union ownership makes it easier to layoff redundant workers.

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.

Choose an answer

I, but not II and not III.

II, but not I and not III.

I and III, but not II.

II and III, but not I.

I, II and III.

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 ?

Choose an answer

A country trade will always be in balance even though it runs a deficit with a single country.

A country trade deficits and surpluses with other countries always balance out.

A country global trade balance is a sign of strength or weakness.

Countries should not be concerned if they have trade deficits because they will balance out in the long run.

A country global trade balance is determined by relative remand and productive capabilities.

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 ?

Choose an answer

The cost of fruits and vegetables has risen sharply.

Consumers have decreased their consumption of fruits and vegetables.

The cost of fruit and vegetables is a major item in the CPI.

Food cost changes are reflected quickly in the CPI.

Other items that make up the CPI have not significantly decreased in price.

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 ?

Choose an answer

Grade-school children reported eating no breakfast at all.

Fewer convenience foods were available to the parents.

Adults claim to eat convenience foods as well as natural foods.

Convenience foods can be digested just as quickly as natural foods.

Consumers are not likely to sacrifice convenience for nutrition.

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 ?

Choose an answer

A. Brown, who got 95% in Chemistry and 95% in Biology, received a B grade.

B. White, who was first in Physics and got 96% in History, received a B grade.

C. Green failed English, but because he ranked ninth overall out of the 100 students, he was awarded an A grade.

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.

E. Gray failed his Math exam, but came top in his other two tests and was awarded a B.

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 ?

Choose an answer

ABC market is not monopolistic.

Monopoly is defined as one seller in a market.

The ABC Company has no domestic competitors.

The ABC company is publicly owned.

The ABC Company is in a service industry.

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:

Choose an answer

The President is up for re-election and needs to show results.

Labour unions have petitioned the President to provide more local jobs.

The trade agreement could bring a quid pro quo on pending negotiations.

Economists claimed that the passage of the bill would increase the country trade deficit.

It was politically desirable for a trade bill at the present time.

A local garbage disposal company increased its profitability even though it reduced its prices in order to attract new customers. This was made possible through the use of automated trucks, thereby reducing the number of workers needed per truck. The company also switched from a concentration on household hauling to a concentration on commercial hauling. As a result of its experience, company management planned to replace all their old trucks and increase the overall size of the truck fleet, doubling hauling capacity.

The company's plan as outlined above, takes into consideration each of the following except:

Choose an answer

Commercial clients have more potential than household customers.

The demand for garbage removal services is sensitive to price.

Demand for garbage removal services would increase in the future.

Doubling of capacity would not encessitate; a substantial increase in the work force.

Doubling of capacity would not cause bottlenecks, leading to a decrease in productivity.

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 ?

Choose an answer

Many areas of the world are cold anyway, so a small rise in temperature would be welcome.

Carbon dioxide is bad for the health.

Most carbon dioxide is emitted by automobiles.

Industry is switching over to synthetic liquid fuel extracted form coal.

A shift to other energy sources would be too costly.

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 ?

Choose an answer

The temperature must fall below 10 degrees Celsius (50 degrees Fahrenheit) for frost to occur.

Absence of a cloud cover cools the ground which causes frost.

Farmers are superstitious.

No one has proven that the moon causes frost.

Farmers are not experts in meteorology.

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