QUESTION: 257

Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazine’s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.
Which of the following, if true, reveals a weakness in the evidence cited above?

Real estate is a highly labor-intensive business.
Home builders are not evenly distributed across the country.
The number of people who want second homes has been increasing each year for the past ten years.
Readers of House magazine are more likely than most people to want second homes.
House magazine includes articles about owning a second home as well as articles about building a second home.

Answer(s): D

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QUESTION: 258

Some home owners are satisfied with only one home.
About half of the people who buy homes are investing in their first home.
About half of the people who buy homes have to take out a mortgage to do so.
Only a quarter of the homes that are built are sold within the first two weeks.
Only a quarter of those who claim that they want a second home actually end up purchasing one.

Answer(s): E

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QUESTION: 259

Traffic safety experts predict that the installation of newly designed air bags in all cars in the United States would reduce the average number of fatalities per traffic accident by 30 percent. In order to save lives, the Department of Transportation (DOT) is considering requiring automobile manufacturers to install air bags of this design in all cars produced after 1998.
Which of the following, if true, represents the strongest challenge to the DOT’s proposal?

Air bags of the new design are more given to being inadvertently triggered, an occurrence that can sometimes result in fatal traffic accidents.
The DOT is planning to require automobile manufacturers to produce these air bags according to very strict specifications.
After installing air bags in new cars, automobile manufacturers will experience an increase in sales.
The proposed air bag installation program will adversely affect the resale of cars manufactured prior to 1998.
As production costs increase, the profits of many domestic automobile dealers show a marked decrease.

Answer(s): A

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QUESTION: 260

A private bus company gained greater profits and provided bus service to the area at lower fares by running buses more frequently and stimulating greater rider ship. Hoping to continue these financial trends, the company plans to replace all older buses with new, larger buses, including some double-decker buses.
The plan of the bus company as described above assumes all of the following EXCEPT

the demand for bus service in the company’s area of service will increase in the future
increased efficiency and revenues will compensate for any new expenses the company incurs
the new buses will be sufficiently reliable to ensure the company a net financial gain once they are in place
driving the new buses will be no more difficult than driving the buses they are to replace
the larger, double-decker buses will not face obstacles such as height and weight restrictions in the bus company’s area of service

Answer(s): D

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QUESTION: 257

QUESTION: 258

QUESTION: 259

QUESTION: 260