1. Oligopoly is the state where there are many competitors within a single market. The Pepsi
Company realizes that its operations are in competitive industries.
Which of the following conclusions may be inferred from the above?
a) Pepsi’s market is not oligopolistic.
b) Monopoly is defined as one seller in a market.
c) The Pepsi Company has a lot of domestic competition
d) The Pepsi Company is operating in an oligopolistic market.
2. People in a South African tribe have observed that heavy rains are usually preceded by claps of thunder. They are convinced that the heavy rains are somehow caused by the claps of
Which of the following, if true, would weaken the tribals, conviction?
a) The temperature must fall below 20 degrees Celsius for both heavy rains and claps of thunder to occur.
b) The presence of rain bearing clouds is the reason for the heavy rains as well as the claps of thunder.
c) The tribals of the particular tribe are unscientific people prone to superstitions.
d) It is as yet to be proved that claps of thunder precede and hence, cause heavy rains.
3. Professor Krithileshwar Jhamb argued that that the method of evaluation for teachers, used at
IIM Bangalore where students evaluated the teachers, was not a valid measure of teaching
quality. Students should fill out questionnaires at the end of the term when the courses have
Which of the following, if true, provides support for Professor Jhamb’s proposal?
a) Professor Jhamb received low ratings from a majority of his students.
b) Under the present system, students were made to evaluate their teachers’ mid term.
c) Students at IIM Bangalore are not interested in evaluating their teachers.
d) The institution should have more methods to evaluate teachers.
4. PM Manmohan Singh lobbied for the inclusion of India amongst the set of ASEAN countries.
This would help develop and liberalize trade with countries such as Japan, China and other
prominent members of the ASEAN group.
Each of the following, if true, could account for the above, except:
a) The PM is up for re-election and needs to show results.
b) The PM’s United Party Alliance had promised the creation of new jobs in the economy.
c) The inclusion of India in the ASEAN would be a major achievement on the economic and political front for Manmohan Singh.
d) Being a shrewd economist, Manmohan Singh realised that trade agreements with prominent nations of the ASEAN would definitely lead to an increase in the trade deficit of the country
5. “If the islanders are doomed to have local self governance—and it is the islanders who have
determined this—then they should be ready to bear the negative consequences of local self
governance,” said a British colonist as he left the shores of the island he was governing.
Which of the following, if true, would weaken his argument?
a) Local rulers are always more interested in the development of their country than foreign colonists.
b) Local self governance is not child’s play.
c) The islanders are equally qualified and competent, if not more than the colonists, to run their own government.
d) A group of islanders were against the transfer of power.
6. Amrinder Singh is no big catch for the Tongress Party in Uttam Pradesh. Even though he is the
brother of the Chief Minister of the opposing Bhrasthwadi Party, he himself has no political
clout and was not even important organizationally for his own party.
Which of the following statements is inconsistent with the above?
a) Amrinder Singh is the brother of the present Chief Minister of Uttam Pradesh.
b) The Bhrastwadi Party and the Tongress Party are political rivals.
c) Amrinder Singh is being touted as the next leader of the Bhrasthwadi Party.
d) Amrinder Singh has not been interested in politics.
7. Stock market analyst Dhirubhai Mehta: “We believe that company’s stock will appreciate at
35% a year for the next 10–12 years. The company just became the leader in its industry and
we expect its sales to continue to grow at 8% a year over this period.”
Investor: “But how can the stock’s price be expected to grow more quickly than the
company’s underlying sales?”
Which of the following facts would best support the stock analyst?
a) The company’s expenses will be declining over the next 5 to 10 years.
b) The company just won a patent on a new product.
c) Company A’s stock is currently overvalued by a significant amount.
d) The company’s industry peer group is expected to experience stock appreciation rates of 30% over the same time horizon.
8. A car magazine report: ‘The average mileage in the small car market was found to be 18
kilometers per litre. The average mileage was calculated by taking cars of all manufacturers
in the segment, filling them with 10 litres of fuel and driving them along the Mumbai-Pune
expressway. However, for the Karuti, the mileage was 22 kilometers per litre. Clearly, if you
want to buy a new car, you should buy the Karuti.’
Which of the following assumptions does the magazine make?
a) The reader is interested in buying a car.
b) Mileage is the sole consideration for the readers of the magazine who intend to buy a car.
c) No other car in the segment had a mileage better than the Karuti’s mileage.
d) None of these.
9. For the above question, which of the following additional information makes the argument
I. Petrol prices have touched the sky, and hence the reader should be primarily interested in saving on fuel costs while purchasing a new car.
II. Besides mileage, Karuti scored the best on 9 out of 10 performance indicators used by the survey.
III. The article is titled—“Your first Car”
a) I and II
b) II and III
c) II only
d) All of these
10. Per-capita income in India last year was Rs 17,600. Real median income for female headed
families was Rs. 38,000. Therefore, women wage-earners are paid more than the national
Which of the following would, if true, weaken the above conclusion?
a) Only a small proportion of the total wage earners are women family heads.
b) In 99 percent of the cases, families headed by a female included other wage-earners.
c) Average income is significantly different from median income.
d) All of these.