Question for 1 to 9
"Most economists in the United states seem captivated
by spell of the free market. Consequently, nothing seems 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,
pricefixing 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 freemarkets
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
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 the United
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.
1.
The primary purpose of the passage is to
a.
refute the theory that the free market plays a
useful role in the development of industrialized societies.
b.
suggest methods by which economist and members
of the government of the United States can recognize and combat price-fixing by
large firms.
c.
explain the various ways in which industrialized
societies can fix in order to stabilized the free market
d.
argue that price-fixing, in one form or another,
is an inevitable part of and benefit to the economy of any industrialized
society.
e. Analysis of free markets in different
economies
2.
The passage provides information that would
answer which of the following questions about price-fixing?
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?
a. I only
b.
III only
c.
I and II only
d.
II and III only
e.
I, II and III
3.
The author’s attitude toward “Most economists in
the United States” can best be described as
a.
spiteful and envious
b.
scornful and denunciatory
c. critical and condescending
d.
ambivalent but deferential
e.
uncertain but interested
4.
It can be inferred from the author’s argument
that a price fixed by the seller “seems pernicious” because
a.
people do not have confidence in large firms
b.
people do not expect the government to regulate
prices
c. most economists believe that consumers as a
group should determine prices.
d.
should determine prices.
e.
most economists associate fixed prices with
communist and socialist economies.
5.
The suggestion in the passage that price-fixing
in industrialized societies is normal arises from the author’s statement that
price-fixing is
a.
a profitable result of economic development
b. an inevitable result of the industrial
system the result of a number of carefully organized decisions.
c.
a phenomenon common to industrialized and to
industrialized societies.
d.
a phenomenon best achieved cooperatively by
government and industry.
e.
A profitable common gevenment
6.
According to the author, priced-fixing in
nonsocialist countries is often.
a.
accidental but productive
b.
illegal but useful
c.
legal and innovative
d.
traditional and rigid
e. intentional and widespread.
7.
According to the author, what is the result of
the Soviet Union’s change in economic policy in the 1970’s?
a.
Soviet firms show greater profit
b.
Soviet firms have less control over the free
market
c.
Soviet firms are able to abject to technological
advances.
d. Soviet firms have some authority to fix prices.
e.
Soviet firms are more responsive to the free
market.
8.
With which of the following statements regarding
the behavior of large firms in industrialized societies would the author be most
likely to agree.
a. The directors of large firms will continue
to anticipate the demand for products
b.
The directors of large firms are less interested
in achieving a predictable level of profit tan in achieving a large profit.
c.
The directors of large firms will strive to
reduce the costs of their products.
d.
Many directors of large firms believe that the
government should establish the prices that will be charged for products.
e.
Many directors of large firms believe that the
price charged for products is likely to increase annually.
9.
In the passage, the author is primarily
concerned with
a.
predicting the consequences of a practice
b. criticizing a point of view
c.
calling attention to recent discoveries.
d.
proposing a topic for research.
e.
summarizing conflicting opinions.
Question for 10 to 15
The discoveries of the white dwarf, the neutron star, and the
black hole, coming well after the discovery of the 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 nuclear radiation.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
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
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.
10.
The primary purpose of the passage is to
a.
offer new explanations for the collapse of
stars.
b.
explain the origins of black holes, neutron
stars, and white dwarfs.
c.
compare the structure of atoms with the
structure of the solar system.
d. explain how the collapse of stars
challenges accepted theories of physics.
e.
describe the imbalance between radiation
pressure and gravitational force.
11.
According to the passage, in the final stages of
its devedlopment our own sun is likely to take the form of a
a. white dwarf
b.
neutron star
c.
red giant
d.
gas of free neutrons
e.
black hole
12.
According to the passage, an imbalance arises
between nuclear radiation pressure and gravitational force in stars because
a.
force in stars because
b.
the density of a star increases as it ages
c. radiation pressure increases as a star
increases in mass
d.
radiation pressure decreases when a star’s fuel
has been consumed
e.
the collapse of a star increases its
gravitational force.
.
13.
The author asserts that the discoveries of the
white dwarf, the neutron star, and the black hole are significant because these
discoveries.
a.
demonstrate the probability of infinite density
and infinitely small dimensions
b. pose the most comprehensive and fundamental
problem faced by physicists in decades
c.
clarify the paradox suggested by the collapse of
electrons into atomic nuclear.
d.
establish the relationship between the mass and
gravitational pressure.
e.
assist in establishing the age of the universe
by tracing the life histories of stars.
f.
14.
The passage contains information that answers
which of the following questions?
a.
I only
b.
III only
c.
I and II only
d.
II and III only
e. I, II and III
f.
15.
The author introduces the discussion of the
paradox concerning atomic structures in order to
a.
Show why it was necessary to develop quantum
mechanics
b.
Compare the structure of an atom with the
structure of star
c. Demonstrate by analogy that a vital insight
in astrophysics is missing
d.
Illustrate the contention that improbable things
do happen in astrophysics
e.
Argue that atoms can collapse if their electrons
do not remain in orbit.
Passage For Question 16 to 25
Recent years have brought minority-owned businesses in the
United States unprecedented opportunities-as well 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
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 minorityowned 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 remaining dependent. 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
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.
16.
The primary purpose of the passage is to
a.
present a commonplace idea and its inaccuracies
b. describe a situation and its potential
drawbacks
c.
propose a temporary solution to a problem
d.
analyze a frequent source to a problem
e.
explore the implications of a findings.
17.
The passage supplies information that would
answer which of the following questions?
a.
which of the following questions?
b.
What federal agencies have set percentage goals
for the use of minority owned businesses in public works contracts?
c.
To which governments agencies must businesses
awarded federal contracts report their efforts to find minority subcontractors?
d.
How widespread is the use of minority-owned
concerns as “fronts; by White backers seeking to obtain subcontracts?
e. How many more minority owned businesses
were there in 1977 than in 1972?
18.
According to the passage, civil rights activists
maintain that one disadvantage under which minority?
a.
maintain that one disadvantage under which
minority owned businesses have traditionally had to labor is that they have been
specially vulnerable to governmental
b.
been denied bank loans at rates comparable to
those afforded larger competitors
c. not had sufficient opportunity to secure
businesses created by large corporations
d.
not been able to advertise in those media that
reach large numbers of potential customers
e.
not had adequate representation in the centers
of government power.
19.
The passage suggests that the failure of a large
business to have its bids for subcontracts results quickly in order might cause
it to...
a. experience frustrations but not serious
financial harm
b.
face potentially crippling fixed expenses
c.
have to record its efforts on forms filed with
the government
d.
increase its spending with minority
subcontractors
e.
revise its procedure for making bids for federal
contracts and subcontracts
20.
The authors implied that the minority owned
concern that does the greater part of its business with one large corporate
customer should...
a.
avoid competition with the larger, more
established concerns by not expanding
b.
concentrate on securing even more business from
that corporation
c. use its influence with the other corporation
to promote subcontracting with other minority concerns.
d.
try to expands its customers base to avoid
becoming dependent on the corporation
e.
pass on some of the work to be done for the
corporation to other minority owned concerns.
21.
It can be inferred from the passage that,
compared with the requirements of law, the percentage goals set by “some
federal and local agencies” are...
a.
more popular with large corporations
b. more specific
c.
less controversial
d.
less expensive to enforce
e.
easier to comply with
22.
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?
a.
Corporate contracts with minority owned business
totaled about $2 billion in 1979
b.
Between 1970 and 1972, corporate contracts with
minority owned businesses declined by 25 percent
c.
The figures collected 1977 underrepreented the
extent of corporate contracts with minority owned businesses.
d.
The estimate of corporate spending with minority
owned businesses in 1980 is approximately $10 million too high
e. The $1.1 billion represented the same percentage
of total corporate spending in 1977 as did $77 million in 1972.
23.
The passage most likely appeared in
a. a business magazine
b.
an encyclopedia of black history to 1945
c.
a dictionary of financial terms
d.
a yearbook of business statistics
e.
an accounting textbook
24.
The author would most likely agree with which of
the following statements about corporate response to working with minority
subcontractors?
a.
Annoyed by the proliferations of “front”
organizations, corporates are likely to reduce their efforts to work with
minority owned subcontractors in the near future.
b.
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 government contracts.
c. The significant response of corporation in
the 1970’s is likely to be sustained and conceivably be increased throughout
the 1980’s
d.
Although corporations re eager to co-operate
with minority owned businesses, a shortage of capital in the 1970’s made
substantial response impossible.
e.
The enormous corporate response has all but
eliminated the dangers of over expansion that used to plague small minority
owned businesses.
25.
How much estimated money in early 1980’s
a.
1 million per year
b.
5 hundred per day
c.
3 million per day
d. 3 million per year
REFERENCE
