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SECTION I

Time --- 35 minutes

24 questions

Directions: The questions in this section are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; That is, the response that most accurately and completely answers the question. You should not make assumptions that are by commonsense standards implausible, superfluous, or incompatible with the passage. After you have chosen the best answer, blacken the corresponding space on your answer sheet.

1. Rita: The original purpose of government farm subsidy programs was to provide income stability for small family farmers. But most farm-subsidy money goes to a few farmers with large holdings Payments to farmers whose income, before subsidies, is greater than $100,000 a year should be stopped.

Thomas: It would be impossible to administer such a cutoff point. Subsidies are needed during the planting and growing season, but farmers do not know their income for given calendar year until tax returns are calculated and submitted the following April.

Which one of the following, if true, is the strongest counter Rita can make to Thomas objection?

(A) It has become difficult for small farmers to obtain bank loans to be repaid later by money from subsidies.

(B) Having such a cutoff point would cause some farmers whose income would otherwise exceed $100,000 to reduce their plantings.

(C) The income of a farmer varies because weather and market prices are not stable from year to year.

(D) If subsidy payments to large farmers were eliminated the financial condition of the government would improve.

(E) Subsidy cutoffs can be determined on the basis of income for the preceding year.

2. Modern physicians often employee laboratory tests, in addition to physical examinations, in order to diagnose diseases accurately. Insurance company regulations that deny coverage for certain laboratory tests therefore decrease the quality of medical care provided to patients.

Which one of the following is an assumption that would serve to justify the conclusion above?

(A) Physical examinations and the uncovered laboratory tests together provide a more accurate diagnosis of many diseases than do physical examinations alone.

(B) Many physicians generally oppose insurance company regulations that, in order to reduce costs, limit the use of laboratory tests.

(C) Many patients who might benefit from the uncovered laboratory tests do not have

any form of health insurance.

(D) There are some illnesses that experienced physicians can diagnose accurately from physicians examination alone.

(E) Laboratory tests are more costly to perform than are physical examinations.

3. Oil analysis predict that if the price of oil fails by half, the consumer s purchase price for gasoline made from this oil will also fall by half.

Which one of the following, If true, would cast the most serious doubt on the prediction made by the oil analysts?

(A) Improved automobile technology and new kinds of fuel for cars have enabled some drivers to use less gasoline.

(B) Gasoline manufacturers will not expand their profit margins.

(C) There are many different gasoline companies that compete with each other to provide the most attractive price to consumers.

(D) Studies in several countries show that the amount of gasoline purchased by consumers initially rises after the price of gasoline has fallen.

(E) Refining costs, distribution costs, and taxes, none of which varies significantly with oil prices. constitute a large portion of the prices of gasoline.
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