(B) Once employees learn how to use a computer, they tend to change employers more readily than before.
(C) Experienced users of Microton computers command much higher salaries than do prospective employees who have no experience in the use of computers.
(D) The average productivity of employees in the general manager s company is below the average productivity of the employees of its competitors
(E) The high costs of replacement parts make Vitech computers more expensive to mainatin than Microton computers.
5. An airplane engine manufacturer developed a new engine model with safely features lacking in the earlier model, which was still being manufactured During the first year that both were sold, the earlier model far outsold the new model: the manufacturer thus concluded that safety was not the customers primary consideration.
Which of the following, if true, would most seriously weaken the manufacturer s conclusion?
(A) Both private plane owners and commercial airlines buy engines from this airplane engine manufacturer.
(B) Many customers consider earlier engine models better safety rlaks than new englne makels, since more is usually known about the safety of the earlier models.
(C) Many customers of this airplane engine manufacturet also bought airplane engines from manufactuarers who did not provide additional safety features in their newer models.
(D) The newer engine model can be used in all planes in which the earlier engine model can be used.
(E) There was no significant difference in price between the newer engine model and the earlier engine model.
6. Between 1975 and 1985, nttrsing-home occupancy rates averaged 87 percent of capacity, while admission rates remained constant, at an average of 95 admissions per 1,000 beds per year. Between 1985 and 1988, however, occupancy rates rose to an average of 92 percent of capacity, while admission rates declined to 81 per 1,000 beds per year.
If the statements above are true which of the following conclusions can be most properly drawn?
(A) The average leagth of time nursing-home residents stayed in nursing homes increased between 1985 and 1988.
(B) The proportion of older people living in nursing hostnes was greater In 1988 than in 1975
(C) Nursing home admission rates tend to decline whenever occupancy rates rise.
(D) Nursing homes built prior to 1985 generally had fewer beds than did aursing homes bulit between 1985 and 1988.
(E) The more beds a sursing home has, the higher its occupancy rate is likely to be.
7. Firms adopting "profit-related-
pay" (PRP) contracts pay wages at levels that vary with the flrm s prooths In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.
If on the basis of the evidence above, it is argued that PRP contracts increase worker productivity. which of the following if true, would most seriously weaken that graument?
(A) Results similar to those cited for the metalworking industry have been found in other industries where PRP contracts are used
(B) Under PRP contracts costs other than labor costs, such asplant machinery and energy makea up an incrensed proportion of the total cost of-each unit of output.
(C) Because introducing PRP contracts greatly changes individual workers relationships to the firm negotiating the introduction of PRP contracts is complex and time consuming.
(D) Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.
(E) In firms in the metalworking industry where PRP contracts are in place the average take-home pay is 15 percent higher than it is in those thrms where workers have more traditional contracts.
8. Crops can be traded on the futures market before they are harvested if a poor corn harvest is predicted prices of corn futures rise; if a bountiful corn harvest is predicted prices of corn futures fall This morning meteorologists are predicting muchneeded rain for the corn-growing region starting tomorrow. Therefore, since adequate moisture is essential for the current crop s survival prices of corn futures will fall sharply today.
Which of the following, if true, most weakens the argument above?
(A) Corn that does not receive adequate moisture druing its critical pollination stage will not produce a bountiful harvest.
(B) Futures prices for corn have been fluctuating more dramatically this season than last season
(C) The rain that meteorologists predicted for tomorrow is expected to extend well beyond the corn-growing region.
(D) Agriculture experts announced today that a disease that has devastated some of the corn crop will spread widely before the end of the growing season.
(E) Most people who trade in corn futures rarely take physical possession of the corn they trade.
9. A discount reatiler of basic household necessities employs thousands of people and pays most of them at the minimum wagte rate, Yet following a federally mandated increase of the minimum wage rate that increased the retai
Which of the following if true, most helps resoive the apparent paradox?
(A) Over half of the retailer s operating costs consist of payroll expendintres: yet only a small percentage of those expenditures go to pay management salaries
(B) The retailer s customer base is made up primarily of people who earn or who depend on the earnings of others who earn the minimum wage.
(C) The retailer s operating costs other than wages increased substantially after the increase in the minimum wage rate went into effect
(D) When the increase in the minimum wage rate went into effect the retailer also raised the wage rate for employees who had been carning just above minimum wage.
(E) The majority of the retailer s employees work as cashiers and most cashiers are paid the minimum wage.
10. The cotton farms of Country Q became so productive that the market could not abort all that they produced Consequently cotton prices fell. The government tried to boost cotton prices by offering farmers who took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per farm.
The government s program if successful will not be a net burden on the budget. Which of the following if true is the best basis for an explanation of how this could be so?
(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from taxes on farm profits (B) Cotton production in seyeral countries other than Q declined slightly the year that the support-payment program went into effect in Q.
(C) The first year that the support-payment program was in effect cotton acreage in Q was 5% below its level in the base year for the program.
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less pe
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