QUESTION: 313

In Millington, a city of 50,000 people, Mercedes Pedrosa, a realtor, calculated that a family with Millington’s median family income, $28,000 a year, could afford to buy Millington’s median-priced $77,000 house. This calculation was based on an 11.2 percent mortgage interest rate and on the realtor’s assumption that a family could only afford to pay up to 25 percent of its income for housing.
Which of the following corrections of a figure appearing in the passage above, if it were the only correction that needed to be made, would yield a new calculation showing that even incomes below the median family income would enable families in Millington to afford Millington’s median-priced house?

Millington’s total population was 45,000 people.
Millington’s median annual family income was $27,000.
Millington’s median-priced house cost $80,000.
The rate at which people in Millington had to pay mortgage interest was only 10 percent.
Families in Millington could only afford to pay up to 22 percent of their annual income for housing.

Answer(s): D

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QUESTION: 314

Psychological research indicates that college hockey and football players are more quickly moved to hostility and aggression than are college athletes in no contact sports such as swimming. But the researchers’ conclusion — that contact sports encourage and teach participants to be hostile and aggressive — is untenable. The football and hockey players were probably more hostile and aggressive to start with than the swimmers.
Which of the following, if true, would most strengthen the conclusion drawn by the psychological researchers?

The football and hockey players became more hostile and aggressive during the season and remained so during the off-season, whereas there was no increase in aggressiveness among the swimmers.
The football and hockey players, but not the swimmers, were aware at the start of the experiment that they were being tested for aggressiveness.
The same psychological research indicated that the football and hockey players had a great respect for cooperation and team play, whereas the swimmers were most concerned with excelling as individual competitors.
The research studies were designed to include no college athletes who participated in both contact and non-contact sports.
Throughout the United States, more incidents of fan violence occur at baseball games than occur at hockey or football games.

Answer(s): A

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QUESTION: 315

Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.
Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the public sector.
Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?

The evidence Ross cites comes from only a single observed case, that of Company X.
The profitability of Company X might be only temporary.
Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.
No mention is made of companies that are partly government owned and partly privately owned.
No exact figures are given for the current profits of Company X.

Answer(s): C

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QUESTION: 316

Stronger patent laws are needed to protect inventions from being pirated. With that protection, manufacturers would be encouraged to invest in the development of new products and technologies. Such investment frequently results in an increase in a manufacturer’s productivity.
Which of the following conclusions can most properly be drawn from the information above?

Stronger patent laws tend to benefit financial institutions as well as manufacturers.
Increased productivity in manufacturing is likely to be accompanied by the creation of more manufacturing jobs.
Manufacturers will decrease investment in the development of new products and technologies unless there are stronger patent laws.
The weakness of current patent laws has been a cause of economic recession.
Stronger patent laws would stimulate improvements in productivity for many manufacturers.

Answer(s): E

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QUESTION: 313

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QUESTION: 316