In these times of fiscal correctness, it is heresy to call for expansionary fiscal policy to revive the economy. However sound economics underpins such a prescription even if it sounds like the wild cry of a slump struck corporate bothered only about its own bottomline.
Which if true would lend support to the author’s view on fiscal policy?
A :
In the past, most governments have adopted a conservative attitude in the face of an economic slump.
B :
Expansionary fiscal policy would be welcomed by business houses that have been overwhelmed by the slump.
C :
Expansionary fiscal policy leading to more expenditure would encourage production in a depressed economy
D :
Fiscal policies are often used as tools to provoke a reaction in the market.
Answer: C (A) does not support the author’s endorsement of expansionary fiscal policy (B) merely restates the para. (C) is the answer (D) is a neutral statement, gives no clues as to why an expansionary fiscal policy makes sense.
Q. No. 14:
Easy import of goods and services spurred by free trade policies introduce goods of various types and quality into the domestic economy. The consumer instead of the government gets the right to choose or reject a foreign product. By treating imports and domestic goods at the same level, the government encourages competition which is essential to improve productivity and lower costs, both are in turn essential to improve the plight of the poor.
Which of the following if true would strengthen the case for free trade?
A :
Consumers are likely to opt for imported products as they are of superior quality.
B :
Domestic producers, who enjoy lower costs of production have an edge over the producers of imported products in terms of price.
C :
Domestic producers have easy access to technical knowledge and face lower costs of production
D :
Consumers are unlikely to increase their level of expenditure because of the introduction of a wide variety of imported goods.
Answer: C (A) does not indicate any positive consequence for the economy. (B) indicates an advantage for the domestic producer. (C) implies that the domestic producer will not be at an unfair advantage, it strengthens the case. (D) this does not alter the case for imported goods in any way.
Q. No. 15:
The TV entertainment industry is evolving and with it its attitudes
towards research. The industry is moving away from its chaotic roots in
the direction of increased professionalization. TV software companies
that once consisted of no more than scripts, studios and salesmanship
are now proper corporate entities with access to formal sources of
funding. Instead of entrepreneurs leading by instinct, you’re getting
professional with MBA degrees and experience in established
companies.
Which of the assumptions would weaken the
claims of increased professionalism in the Television industry?
A :
The artists working on TV shows are paid on a contractual basis and are not regarded as employees.
B :
Banks and financial institutions are wary of lending money to TV producers as the producers are unable to furnish necessary documents.
C :
Many management graduates who have opted for a career in television are satisfied with their jobs.
D :
Quite a few television producers see the industry as an avenue for making quick money.
Answer: B (A) does not indicate lack of professionalism. (B) refer para “with access to formal sources of funding”. If the producers cannot obtain loans, the claim is weakened. (C) and (D) do not imply unprofessionalism
Q. No. 16:
“The attainment of a master who has attained the truth can be experienced through his writings.”
Which of the following most Undermines the above statement ?
A :
Most of the masters who have attained the truth do not express themselves through writings.
B :
Many masters who have attained the truth are illiterate.
C :
Truth is absolute and cannot be expressed through words.
D :
An excess of words can confuse the mind and a confused mind cannot attain the truth.
Answer: C We need an option which goes against the opinion that “A master’s writings can make us experience his attainment i.e the truth” Options A and B talk about masters who do not write or are illiterate. But they do not question the writings of those masters who write or are literate. Option D talks about an excess of words which need not be a characteristic of a master’s writings.Option C goes against or undermines the given statement. If Truth cannot be expressed through words then the attainment of a master who has experienced the truth cannot be effectively expressed or experienced through writings.
Q. No. 17:
With the rising demand for a skilled workforce , more and more Indian Universities are offering skill-based education as part of the curriculum. But this gives rise to a question as to what the role of a university is – to fulfill academic requirements or industry demand.
Which statement would best resolve the question in the above paragraph ?
A :
Universities are after all a modified version of a placement center.
B :
In these times, one has to combine theory with practice
C :
Education ,in addition to imparting knowledge, has to prepare the student to face the world
D :
It is only by applying knowledge in the outside world that knowledge gets fulfilled
Answer: C Option A does not answer the question, instead it makes a university seem like a placement cell. Option D seems biased towards ‘industry demand’ and ‘application’ and does not give a satisfactory resolution to the question.Option B gives some kind of resolution but it fails to highlight the role of the university. Option C talks about education which is what Universities impart. The twin roles of education can help resolve the conflict about the role of a University that a University can fulfill two roles.
Q. No. 18:
In may be safe to say that we all are prisoners, to some extent, of own making. We may find ourselves imprisoned by anger, resentment, remorse, or the belief that there are no other options for us in our lives and jobs — that we are locked into doing what we are currently doing.
Which of the following, if true, would weaken the speaker’s argument the most?
A :
The desire to be freed from limiting thoughts will release us.
B :
We have no option but to pursue our lives
C :
We are destined to lead the life that we are leading.
Answer: D Option (D) would weaken the argument because it negates the argument totally. (A) gives a solution rather than weakening the argument. (B) and (C)repeat the idea mentioned in the argument.