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Analysis of free markets in different economies Correct Answer : E Question 2 The passage provides information that would answer which of the following questions about price-fixing?. Cor

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Reading Comprehension Practice Test 1

Passage For Question 1 to 9

"Most economists in the United states seem captivated by spell of the free market Consequently, nothingseems good ornormal that does not accord with the requirements of the free market A price that is determined by the seller or for that matter, established by anyone other than the aggregate of consumers seems pernicious, Accordingly, it requires a major act of will to think of price – fixing (the determination of prices by the seller) as both “normal” and having a valuable economic function In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless

consequence of its own development, the price-fixing that requires, Modern industrial planning requires and rewards great size Hence a comparatively small number of large firms will be competing for the same group of consumers That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-markets economic theories But each large firms will also act with full consideration of the needs that

it has in common with the other large firms competing for the same customers Each large firm will thus avoid significant price cutting, because price cutting would be prejudicial to the common interest in a stable demand for products Most economists do not see price-fixing when it occurs because they expect

it to be brought about by a number of explicit agreements among large firms; it is not More over those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non socialist countries other than theUnited States These economies employ intentional price-fixing usually in an overt fashion Formal price fixing by cartel and informal price fixing by agreements covering the members of an industry are common place Were there something peculiarly efficient about the free market and inefficient about price fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development There is no indication that they have Socialist industry also works within a frame work of controlled prices In early 1970’s, the soviet union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system Economists

in the United States have hailed the change as a return to the free market.But Soviet firms are no more subject to prices established by free market over which they exercise little influenced than are capitalist firms

Question 1

The primary purpose of the passage is to

1 refute the theory that the free market plays a useful role in the development of industrialized societies

2 suggest methods by which economist and members of the government of the United States can recognize and combat price-fixing by large firms

3 explain the various ways in which industrialized societies can fix in order to stabilized the free market

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4 argue that price-fixing, in one form or another, is an inevitable part of and benefit to the

economy of any industrialized society

5 Analysis of free markets in different economies

Correct Answer : E

Question 2

The passage provides information that would answer which of the following questions about price-fixing?

I.What are some of the ways in which prices can be fixed?

II.For what products is price-fixing likely to be more profitable than the operation of the free market?

III.Is price-fixing more common in socialist industrialized societies or in nonsocialist industrialized societies?

The author’s attitude toward “Most economists in the United States” can best be described as

1 spiteful and envious

2 scornful and denunciatory

3 critical and condescending

4 ambivalent but deferential

5 uncertain but interested

Correct Answer : C

Question 4

It can be inferred from the author’s argument that a price fixed by the seller “seems pernicious” because

1 people do not have confidence in large firms

2 people do not expect the government to regulate prices

3 most economists believe that consumers as a group should determine prices

4 most economists associate fixed prices with communist and socialist economies

5 Most economists believe that no one group should determine prices

Correct Answer : C

Question 5

The suggestion in the passage that price-fixing in industrialized societies is normal arises from the author’s statement that price-fixing is

1 a profitable result of economic development

2 an inevitable result of the industrial system

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3 the result of a number of carefully organized decisions.

4 a phenomenon common to industrialized and to industrialized societies

5 a phenomenon best achieved cooperatively by government and industry

Correct Answer : B

Question 6

According to the author, priced-fixing in nonsocialist countries is often.

1 accidental but productive

2 illegal but useful

3 legal and innovative

4 traditional and rigid

5 intentional and widespread

Correct Answer : E

Question 7

According to the author, what is the result of the Soviet Union’s change in economic policy in the 1970’s?

1 Soviet firms show greater profit

2 Soviet firms have less control over the free market

3 Soviet firms are able to abject to technological advances

4 Soviet firms have some authority to fix prices

5 Soviet firms are more responsive to the free market

Correct Answer : D

Question 8

8.With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree.

1 The directors of large firms will continue to anticipate the demand for products

2 The directors of large firms are less interested in achieving a predictable level of profit tan in achieving a large profit

3 The directors of large firms will strive to reduce the costs of their products

4 Many directors of large firms believe that the government should establish the prices that will be charged for products

5 Many directors of large firms believe that the price charged for products is likely to increase annually

Correct Answer : A

Question 9

In the passage, the author is primarily concerned with

1 predicting the consequences of a practice

2 criticizing a point of view

3 calling attention to recent discoveries

4 proposing a topic for research

5 summarizing conflicting opinions

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Correct Answer : B

Passage For Question 10 to 15

The discoveries of the white dwarf, the neutron star, and the black hole, coming well after the discovery ofthe red giant are among eh most exciting developments in decades because they may be well present physicists with their greatest challenge since thefailure of classical mechanics In the life cycle of the star, after all of the hydrogen and helium fuel has been burned, the delicate balance between the outer nuclearradiation.pressure and the stable gravitational force becomes disturbed and slow contraction begins As compression increases, a very dense plasma forms If the initial star had mass of less than 1.4 solar masses (1.4 times the mass of our sun), the process ceases at the density of 1,000 tons per cubic inch, and the star becomes the white dwarf However, if the star was originally more massive, the white dwarf plasma can’t resist the gravitations pressures, and in rapid collapse, all nuclei of lthe star are converted to

a gas of free neutrons Gravitational attraction compresses this neutron gas rapidly until a density of 10 tons per cubic inch is reached; at this point the strong nuclear force resists further contraction If the mass

of the star was between 1.4 and a few solar masses, the process stops here, and we have a neutron star.But if the original star was more massive than a few solar masses, even the strong nuclear forces cannot resist the gravitational orunch The neutrons are forced into one another to form heavier hadrons and these in turn coalesce to form heavier entities, of which we as yet know nothing At this point, a complete collapse of the stellar mass occurs; existing theories predict a collapse to infinite density and infinitely small dimensions Well before this, however, the surface gravitational force would become so strong that

no signal could ever leave the star - any photon emitted would fall back under gravitational attraction – and the star would become black hole in space This gravitational collapse poses a fundamental

challenge to physics When the most widely accepted theories predict such improbable things as infinite density and infinitely small dimensions, it simply means that we are missing some vital insight This last happened in physics in the 1930’s, when we faced the fundamental paradox concerning atomic structure

At that time, it was recognized that electrons moved in table orbits about nuclei in atoms However, it was also recognized that if charge is accelerated, as it must be to remain in orbit, it radiates energy; so, theoretically, the electron would be expected eventually to spiral into the nucleus and destroy the atom Studies centered around this paradox led to the development of quantum mechanics It may well be that

an equivalent t advance awaits us in investigating the theoretical problems presented by the phenomenon

of gravitational collapse

Question 10

The primary purpose of the passage is to

1 offer new explanations for the collapse of stars

2 explain the origins of black holes, neutron stars, and white dwarfs

3 compare the structure of atoms with the structure of the solar system

4 explain how the collapse of stars challenges accepted theories of physics

5 describe the imbalance between radiation pressure and gravitational force

Correct Answer : D

Question 11

According to the passage, in the final stages of its devedlopment our own sun is likely to take the form of a

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According to the passage, an imbalance arises between nuclear radiation pressure and

gravitational force in stars because

1 the density of a star increases as it ages

2 radiation pressure increases as a star increases in mass

3 radiation pressure decreases when a star’s fuel has been consumed

4 the collapse of a star increases its gravitational force

5 a dense plasma decreases the star’s gravitational force

Correct Answer : C

Question 13

The author asserts that the discoveries of the white dwarf, the neutron star, and the black hole are significant because these discoveries.

1 demonstrate the probability of infinite density and infinitely small dimensions

2 pose the most comprehensive and fundamental problem faced by physicists in decades

3 clarify the paradox suggested by the collapse of electrons into atomic nuclei

4 establish the relationship between the mass and gravitational pressure

5 assist in establishing the age of the universe by tracing the life histories of stars

The author introduces the discussion of the paradox concerning atomic structures in order to

1 Show why it was necessary to develop quantum mechanics

2 Compare the structure of an atom with the structure of star

3 Demonstrate by analogy that a vital insight in astrophysics is missing

4 Illustrate the contention that improbable things do happen in astrophysics

5 Argue that atoms can collapse if their electrons do not remain in orbit

Correct Answer : C

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Reading Comprehension Practice Test 2

Passage For Question 1 to 9

Recent years have brought minority-owned businesses in the United States unprecedented

opportunities-as well opportunities-as new and significant risks Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies Now congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do

so on forms field with the government Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises Corporate response appears to have been substantial Accoring to figures collected in 1977, the total of corporate contracts with minority business rose from $77 to $1 1 billion in 1977 The projected total of corporate contracts with minority business for the early 1980’s is estimated to be over $3 billion per year with no letup anticipated in the next decade Promising as it is for minority businesses, this increased patronage poses dangers for them, too First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them If, there after, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses The world of corporate purchasing can be frustrating for small entrepreneur’s who get requests for elaborate formal estimates and bids Both consume valuable time and resources and a small cmpany’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments through formation of joint ventures with minority-owned

concerns, of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remainingdependent Even in the best of circumstances, fierce competition from larger, more established

companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success

Question 1

The primary purpose of the passage is to

1 present a commonplace idea and its inaccuracies

2 describe a situation and its potential drawbacks

3 propose a temporary solution to a problem

4 analyze a frequent source to a problem

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5 explore the implications of a findings.

Correct Answer : B

Question 2

The passage supplies information that would answer which of the following questions?

1 What federal agencies have set percentage goals for the use of minority owned businesses in public works contracts?

2 To which governments agencies must businesses awarded federal contracts report their efforts

to find minority subcontractors?

3 How widespread is the use of minority-owned concerns as “fronts; by White backers seeking to obtain subcontracts?

4 How many more minority owned businesses were there in 1977 than in 1972?

5 What is one set of conditions under which a small business might find itself financially

1 been specially vulnerable to governmental

2 been denied bank loans at rates comparable to those afforded larger competitors

3 not had sufficient opportunity to secure businesses created by large corporations

4 not been able to advertise in those media that reach large numbers of potential customers

5 not had adequate representation in the centers of government power

Correct Answer : C

Question 4

The passage suggests that the failure of a large business to have its bids for subcontracts results quickly in order might cause it to

1 experience frustrations but not serious financial harm

2 face potentially crippling fixed expenses

3 have to record its efforts on forms filed with the government

4 increase its spending with minority subcontractors

5 revise its procedure for making bids for federal contracts and subcontracts

Correct Answer : A

Question 5

The authors implied that the minority owned concern that does the greater part of its business with one large corporate customer should

1 avoid competition with the larger, more established concerns by not expanding

2 concentrate on securing even more business from that corporation

3 try to expands its customers base to avoid becoming dependent on the corporation

4 pass on some of the work to be done for the corporation to other minority owned concerns

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5 use its influence with the other corporation to promote subcontracting with other minority

4 less expensive to enforce

5 easier to comply with

Correct Answer : B

Question 7

Which of the following if true, would most weaken the author’s assertion that, in 1970’s, corporate response to federal requirements (lines 18-19) was substantial?

1 Corporate contracts with minority owned business totaled about $2 billion in 1979

2 Between 1970 and 1972, corporate contracts with minority owned businesses declined by 25 percent

3 The figures collected 1977 underrepreented the extent of corporate contracts with minority owned businesses

4 The estimate of corporate spending with minority owned businesses in 1980 is approximately

$10 million too high

5 The $1.1 billion represented the same percentage of total corporate spending in 1977 as did

2 an encyclopedia of black history to 1945

3 a dictionary of financial terms

4 a yearbook of business statistics

1 Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts

to work with minority owned subcontractors in the near future

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2 Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many

Passage For Question 10 to 15

In strongly territorial birds such as the indigo bunting, song is the main mechanism for securing g,

defining, and defending an adequate breeding are When population density is high, only the strongest males can retain a suitable area The weakest males do not breed or are forced to nest on poor or marginal territories.During the breeding season, the male indigo bunting sings in his territory; each song lasts two or three seconds with a very short pause between songs, Melodic and rhythmic characteristics are produced by rapid changes in sound frequency and some regularity of silent periods between sounds.These modulated sounds form recognizable units, called figures, each of which is reproduced again and again with remarkable consistency Despite the large frequency range of these sounds and the rapid frequency changes that the birds makes, the n umber of figures is very limited Further, although we found some unique figures in different geographical populations, more than 90 percent of all Indigo bunting figures are extremely stable on the geographic basis In our studies of isolated buntings we foundthat male indigo buntings are capable of singing many more types of figures than they usually do Thus, it would seem that they copy their figures from other buntings they hear signing.Realizing that the ability to distinguish the songs of one species from those of another could be an important factor in the volition of the figures, we tested species recognition of a song When we played a tape recording of a lazuli bunting

or a painted bunting, male indigo bunting did not respond; Even when a dummy of male indigo bunting was placed near the tape recorder Playing an indigo bunting song, however, usually brought an

immediate response, making it clear that a male indigo bunting can readily distinguished songs of its own species from those of other species.The role of the songs figures in interspecies recognition was then examined We created experimental songs composed of new figures by playing a normal song

backwards, which changed the detailed forms of the figures without altering frequency ranges or gross temporal features Since the male indigos gave almost a full response to the backward song, we

concluded that a wide range of figures shapes can evoke positive responses It seems likely, therefore, that a specific configuration is not essential for interspecies recognition, but it is clear that song figures must confirm to a particular frequency range, must be within narrow limits of duration, and must be spaced at particular intervals.There is evident that new figures may arise within a population through a slow process of change and selection This variety is probably a valuable adaptation for survival: if every bird sang only a few types of figures, in dense woods or underbrush a female might have difficulty

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recognizing her mate’s song and a male might not be able to distinguished a neighbor from a stranger Our studies led us to conclude that there must be a balance between song stability and conservatism, which lead to clear-cut species recognition, and song variation, which leads to individual recognition.

Question 10

The primary purpose of passage is to

1 raise new issues

1 They are established at birth

2 They evolve slowly as the bird learns

3 They are learned from other indigo buntings

4 They develop after the bird has been forced onto marginal breeding areas

5 The gradually develop through contact with prospective mates

Correct Answer : C

Question 12

It can be inferred that the investigation that determined the similarly among more than 90 percent

of all the figures produced by birds living in different regions was undertaken to answer which of the following questions?

I.How much variations, if any, is there in the figure types produced by indigo buntings in different locales?

II.Do local populations of indigo buntings develop their own dialects of figure types?

III.Do figure similarities among indigo buntings decline with increasing geographic separation?

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2 increase population density by eliminating ambiguity in the figures to which the females must respond

3 maintain the integrity of the species by restricting the degree of figure variation and change

4 enhance species recognition by decreasing the number of figure patterns to which the bird must respond

5 avoid confusion between species by clearly demarcating the figure patterns of each specials

Correct Answer : D

Question 14

It can be inferred that a dummy of a male indigo bunting was placed near the tape recorder that played the songs of different species in order to try to

1 simulate the conditions in nature

2 Rule out visual cues as a factor in species recognition

3 Supply an additional clue to species recognition for the indigo bunting

4 Provide data on the habits of bunting species other than then indigo bunting

5 Confound the indigo buntings in the experiment

Correct Answer : B

Question 15

According to the passage, the authors played a normal indigo bunting song backwards in order to determine which of the following?

1 What are the limits of the frequency range that will provide recognition by the indigo bunting

2 What is the time duration necessary for recognition by the indigo bunting?

3 How specific must a figure shape be for it to be recognized by the indigo bunting?

4 How does variation in the pacing of song figures?

5 Is the indigo bunting responding to cues other than those in the song figures?

Correct Answer : C

Reading Comprehension Practice Test 3

Passage For Question 1 to 9

Those examples of poetic justice that occur in medieval and Elizabethan literature, and that seem so satisfying, have encouraged a whole school of twentieth-century scholars to "find" further examples In fact, these scholars have merely forced victimized character into a moral framework by which the

injustices inflicted on them are, somehow or other, justified Such scholars deny that the sufferers in a tragedy are innocent; they blame the victims themselves for their tragic fates Any misdoing is enough to subject a character to critical whips Thus, there are long essays about the misdemeanors of Webster’s Duchess of Malfi, who defined her brothers, and he behavior of Shakespeare’s Desdemona, who

disobeyed her father.\n\nYet it should be remembered that the Renaissance writer Matteo Bandello strongly protests the injustice of the severe penalties issued to women for acts of disobedience that men

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could, and did, commit with virtual impunity And Shakespeare, Chaucer, and Webster often enlist their readers on the side of their tragic heroines by describing injustices so cruel that readers cannot but join in protest By portraying Griselda, in the Clerk’s Tale, as a meek, gentle victim who does not criticize, much less rebel against the prosecutor, her husband Waltter, Chaucer incites readers to espouse Griselda’s cause against Walter’s oppression Thus, efforts to supply historical and theological rationalization for Walter’s persecutions tend to turn Chaucer’s fable upside down, to deny its most obvious effect on reader’s sympathies Similarly, to assert that Webster’s Duchess deserved torture and death because shechose to marry the man she loved and to bear their children is, in effect to join forces with her tyrannical brothers, and so to confound the operation of poetic justice, of which readers should approve, with precisely those examples of social injustice that Webster does everything in his power to make readers condemn Indeed Webster has his heroin so heroically lead the resistance to tyranny that she may well inspire members of the audience to imaginatively join forces with her against the cruelty and hypocritical morality of her brothers Thus Chaucer and Webster, in their different ways, attack injustice, argue on behalf of the victims, and prosecute the persecutors Their readers serve them as a court of appeal that remains free to rule, as the evidence requires, and as common humanity requires, in favour of the

innocent and injured parties For, to paraphrase the noted eighteenth-century scholar, Samuel Johnson, despite all the refinements of subtlety and the dogmatism of learning, it is by the common sense and compassion of readers who are uncorrupted by the characters and situations in mereval and Dlizabetahn literature, as in any other literature, can best be judged

Question 1

According to the passage, some twentieth-century scholars have written at length about

1 Walter's persecution of his wife in Chaucer's the Clerk's Tale

2 the Duchess of Malfi's love for her husband

3 the tyrannical behaviour of the Duchess of Malfi's brothers

4 the actions taken by Shakespeare's Desdemona

5 the injustices suffered by Chaucer's Griselda

Correct Answer : D

Question 2

The primary purpose of the passage is to

1 describe the role of the tragic heroine in medieval and Elizabethan literature

2 resolve a controversy over the meaning of "poetic justice" as it is discussed in certain medieval and Elizabethan literary treatises

3 present evidence to support the view that characters in medieval and Elizabethan tragedies are

to blame for their fates

4 assert that it is impossible for twentieth-century readers to fully comprehend the characters and situations in medieval and Elizabethan literary works

5 argue that some twentieth-century scholars have misapplied the concept of "poetic justice" in analyzing certain medieval and Elizabethan literary works

Correct Answer : E

Question 3

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It can be inferred from the passage that the author consider Chaucer's Grisselda to be

1 Derivation of logically sound conclusions from well-founded premises

2 Accurate observation of data, inaccurate calculation of statistics, and drawing of incorrect

conclusions form the faulty statistics

3 Establishment of a theory, application of the theory to ill-fittings data, and drawing of

unwarranted conclusions from the data

4 Development of two schools of thought about a factual situation, debate between the two

schools, and rendering of a balanced judgment by an objective observer

5 Consideration of a factual situation by a group, discussion of various possible explanatory hypotheses and agreement by consensus on the most plausible explanation

Correct Answer : C

Question 7

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The author's paraphrase of a statement by Samuel Johnson serves which of the following

functions in the passage?

1 it furnishes a specific example

2 it articulates a general conclusion

3 it introduces a new topic

4 it provides a contrasting perspective

5 it clarifies an ambiguous assertion

Correct Answer : B

Question 8

The author of the passage is primarily concerned with

1 reconciling opposing viewpoints

2 encouraging innovative approaches

3 defending an accepted explanation

4 advocating an alternative interpretation

5 analyzing an unresolved question

Correct Answer : D

Question 9

The primary purpose of the passage is to

1 criticize the inflexibility of American economic mythology

2 contrast "Old World" and "New World" economic ideologies

3 challenge the integrity of traditional political leaders

4 champion those Americans whom the author deems to be neglected

5 suggests a substitue for the traditional metaphor of a race

Correct Answer : A

Passage For Question 10 to 15

Woodraw Wilson was referring to the liberal idea of the economic market when he said that the free enterprise system is the most efficient economic system Maximum freedom means maximum

productiveness; our "openness" is to be the measure of our stability Fascination with this ideal has made Americans defy the "Old World" categories of settled possessiveness versus unsettling deprivation., the cupidity of retention versus the cupidity of seizure, a "status quo" defended of attacked The United States, it was believed, had no status quo ante Our only "station" was the turning of a stationary wheel, spinning faster and faster We did not base our system on property but opportunity-which meant we based it not on stability but on mobility The more things changed, that is, the more rapidly the wheel turned, the steadier we would be The conventional picture of class politics is composed of the Haves, who want a stability to keep what they have, and Have-Nots, who want a touch of instability and change

in which to scramble for the things they have not But Americans imagined a condition in which

speculators, self-makers, runners are always using the new opportunities given by our land These economic leaders (front-runners) would thus be mainly agents of Change The nonstarters were

considered the ones who wanted stability, a strong referee to give them some position in the race, a regulative hand to calm manic speculation; an authority that can call things to a half begin things again from compensatorily staggered "starting lines".:Reform" in America has been sterile because it can

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