SECTION Ⅲ

Time-35 minutes

25 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. Question withheld from scoring.

2. Owners of deeply indebted and chronically unprofitable small businesses sometimes try to convince others to invest money in their companies. Since the money thus acquired will inevitably be used to pay off debts, rather than to expand operation, this money will not stimulate sales growth in such companies. Thus, most people are reluctant to make these investments. Surprisingly, however, such investments often earn handsome returns in the very first year they are made.

Which one of the following, if true most helps to explain the surprising results of such investments?

(A) Investors usually choose to reinvest their returns on such investments.

(B) Expanding production in such companies would usually require more funds than would paying off debts.

(C) Paying off debts, by saving a company the money it would otherwise owe in interest, decreases the company’s overall expenses and thereby increases its profits.

(D) Banks are reluctant to lend money to any company that is already heavily in debt and chronically unprofitable.

(E) If the sales of a company do not grow, there is usually little need to devote a large share of company resources to expanding production.

3. After purchasing a pot-bellied pig at the pet store in Springfield, Amy was informed by a Springfield city official that she would not be allowed to keep the pig as a pet, since city codes classify pigs as livestock, and individuals may not keep livestock in Springfield.

The city official’s argument depends on assuming which one of the following?

(A) Amy lives in Springfield.

(B) Pigs are not classified as pets in Springfield.

(C) Any animal not classified as livestock may be kept in Springfield.

(D) Dogs and cats are not classified as livestock in Springfield.

(E) It is legal for pet stores to sell pigs in Springfield.

4. Historian: The central claim of the “end-of-history” theory is that history has reached its final stage of development. According to its adherents, democratic ideals have triumphed over their rivals, and history is effectively at an ideological end. But, this view fails to consider that it is impossible to stand outside all of history to judged whether history is really at an end.

Which one of the following can be most reasonably inferred from the historian’s statements?

(A) We can never know whether the end-of-history theory is true.

(B) Advocates of the end-of-history theory have too ideological an understanding of history.

(C) If we were at the end of history, we would automatically know whether the end-of-history theory is true.

(D) It is impossible for the end-of-history theory to be true.

(E) Ideological developments are the essential elements of history.

5. John: As I was driving to work this morning. I was stopped by a police officer and ticketed for speeding. Since there were many other cars around me that were going as fast as I was, the police officer clearly treated me unfairly.

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