Question 1

Which of the following, if true, is the most logical completion of the argument below? The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no ______

Options :

A : tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings

B : tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans

C : tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts

D : taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts

E : taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts

Answer: A

Question 2

Options :

A : Statement (1) BY ITSELF is sufficient to answer the question, but statement (2) by itself is not.

B : Statement (2) BY ITSELF is sufficient to answer the question, but statement (1) by itself is not.

C : Statements (1) and (2) TAKEN TOGETHER are sufficient to answer the question, even though NEITHER statement BY ITSELF is sufficient.

D : Either statement BY ITSELF is sufficient to answer the question

E : Statements (1) and (2) TAKEN TOGETHER are NOT sufficient to answer the question, requiring more data pertaining to the problem.

Answer: D

Question 3

Holiday receipts – the total sales recorded in the fourth quarter of the year – determine the economic success

or failure of many retail businesses. Camco, a retailer selling just one camera model, is an excellent example.

Camco’s holiday receipts, on average, account for a third of its yearly total receipts and about half of its yearly

profits.

If the statements above are true, which of the following must also be true about Camco on the basis of them?

Options :

A :

Its fixed expenses per camera sold are higher during the fourth quarter than for any of the other three

quarters.

B : It makes more profit during the first and third quarters combined than during the fourth quarter.

C :

Its per-camera retail price is lower, on average, during the fourth quarter than during any one of the first

three quarters.

D :

The per-camera price it pays to wholesalers is higher, on average, during the fourth quarter than during any

of the other three quarters.

Answer: D

Question 4

A 340-liter solution of Kola is made from 88% water, 5% concentrated Kola and the rest is made from sugar. If 3.2 liters of sugar, 10 liter of water and 6.8 liters of concentrated Kola were added to the solution, what percent of the solution is made from sugar?

Options :

A : 6%

B : 7.5%

C : 9.2%

D : 10.5%

E : 11%

Answer: B

Question 5

The recent decline in land prices has hurt many institutions that had invested heavily in real estate. Last year, before the decline began, a local college added 2,000 acres to its holdings. The college, however, did not purchase the land but received it as a gift. Therefore, the price decline will probably not affect the college.

Which of the following, if true, casts most doubt on the conclusion above?

Options :

A : The 2,000 acres that the college was given last year are located within the same community as the college itself

B : The college usually receives more contributions of money than of real estate

C : Land prices in the region in which the college is located are currently higher than the national average

D : Last year, the amount that the college allocated to pay for renovations included money it expected to receive by selling some of its land this year.

E : Last year, the college paid no property taxes on land occupied by college buildings but instead paid fees to compensate the local government for services provided.

Answer: D

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