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399944 V03-30 B A

The Chicago School of economics gained ascendancy in the 1950s and became the prevailing way
of thinking about capitalist economics, first in the United States and eventually in many Western
countries. A dominant subset of Neoclassical economics, the Chicago School fine-tuned many of
the fundamentals of the larger movement and articulated tenets now generally taken for granted
in economic thought.

A basic principle of Neoclassical economics is the concept of utility, or the assertion that a correct
economic decision is one that yields the greatest good for the greatest number. Neoclassical
economics vociferously defends a laissez-faire, or hands off, approach to government regulation.
According to Neoclassical theory, in the absence of state interference, individual participants in the
market will make rational economic decisions that maximize their satisfaction. For individuals, the
principle of utility translates into buying quality goods at the lowest possible price; for companies,
it means making decisions that will maximize profits.The interplay of free market forces, according
to Neoclassical economists, will result in greater good in the form of high quality products and
services for a greater number of people.

The Chicago School accepts the principles of utility and laissez-faire regulation, but tailors its
understanding of these terms to focus on the related principle of efficiency. For Chicago School
thinkers, efficiency subsumes Neoclassical thought on the mechanisms of utility, which
concentrates on individuals making individual rational decisions, into a more sophisticated
awareness of the balance between individual decisions and production. The chief cause of
inefficiency for Chicago School thinkers is government regulation, which prevents the free interplay
of market forces. In an economy unencumbered by state interference, not only are individuals and
companies free to maximize their satisfaction, but production itself is likely to become more
efficient by producing the highest quality goods at the lowest possible price.

According to the passage, which of the following best articulates the relationship of utility to
efficiency?

Utility is concerned with maximizing satisfaction, whereas efficiency is concerned

with greater production.

Utility is the basic principle, whereas efficiency is a more refined version of the basic
principle.

Utility and efficiency are equally important concepts in Neoclassical economic theory.

Utility and efficiency, though opposite in meaning, are both useful in describing the statistical
behavior of free markets.

Neither utility nor efficiency, as a principle, is able to completely predict the behavior of a free
market.

Hide Explanation
To answer this question, an understanding of the terms utility and efficiency as they are used in
the passage is required. The second paragraph discusses the definition of utility as an economic
decision that yields the greatest good for the greatest number. The first sentence of the second
paragraph states that the Chicago School accepts this definition of utility, but has refined it and
added other subtleties to it, so that the Schools major apparent concern is with efficiency.

1. According to the passage, utility and efficiency are aspects of the same concern with
maximizing satisfaction through greater production; this answer choice presents a
redundant sentence.
2. This option correctly identifies the connection made in the passage between
the ideas of utility, the basic principle associated with Neoclassical economics,
and the same principle refined by the Chicago School and discussed as
efficiency.
3. Efficiency is not discussed in the passage as being a major component of Neoclassical
theory.
4. Utility and efficiency are not opposite in meaning.
5. Whether or not utility and efficiency can predict the behavior of a market is outside the
scope of this passage.

The correct answer is B

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6 of 41

Verbal
Reading Comprehension (RC)
Long Passage
V03-32

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399944 V03-32 E C

The Chicago School of economics gained ascendancy in the 1950s and became the prevailing way
of thinking about capitalist economics, first in the United States and eventually in many Western
countries. A dominant subset of Neoclassical economics, the Chicago School fine-tuned many of
the fundamentals of the larger movement and articulated tenets now generally taken for granted
in economic thought.

A basic principle of Neoclassical economics is the concept of utility, or the assertion that a correct
economic decision is one that yields the greatest good for the greatest number. Neoclassical
economics vociferously defends a laissez-faire, or hands off, approach to government regulation.
According to Neoclassical theory, in the absence of state interference, individual participants in the
market will make rational economic decisions that maximize their satisfaction. For individuals, the
principle of utility translates into buying quality goods at the lowest possible price; for companies,
it means making decisions that will maximize profits.The interplay of free market forces, according
to Neoclassical economists, will result in greater good in the form of high quality products and
services for a greater number of people.
The Chicago School accepts the principles of utility and laissez-faire regulation, but tailors its
understanding of these terms to focus on the related principle of efficiency. For Chicago School
thinkers, efficiency subsumes Neoclassical thought on the mechanisms of utility, which
concentrates on individuals making individual rational decisions, into a more sophisticated
awareness of the balance between individual decisions and production. The chief cause of
inefficiency for Chicago School thinkers is government regulation, which prevents the free interplay
of market forces. In an economy unencumbered by state interference, not only are individuals and
companies free to maximize their satisfaction, but production itself is likely to become more
efficient by producing the highest quality goods at the lowest possible price.

The author of the passage most likely states that greater good comes in the form of high quality
products and services for which of the following reasons?

To underscore the fact that Neoclassical economists are more concerned with the greater good
than other types of economists.

To remind readers that, for the principle of utility to truly apply, goods and services must be put
to appropriate use.

To emphasize the fact that products and services are good, but high quality products
and services are better.

To distinguish between economic good (quality products and services) and economic evil (lack of
quality products and services).

To make clear an implied distinction between moral good (virtue) and economic good
(quality products and services).

Hide Explanation

The words most likely states in the question stem are a signal that the correct
answer will deal with material implied but not directly stated in the passage. The
relationship of laissez-faire regulation with the principle of utility is being discussed in the second
paragraph. The line in question is making a connection between the benefits of limited
government regulation and achieving the goal of the principle of utility. This sentence also
clarifies a possible misunderstanding in the meaning of the word good.

1. The passage does not make this claim.

2. Appropriate use of goods and services is not discussed in the passage.
3. This is an inaccurate definition of the term greater good.
4. This distinction is not made in the passage, nor is economic evil mentioned.
5. This option correctly identifies the sentences purpose in clarifying an implied
distinction between uses of the word good.

The correct answer is E

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Verbal
Sentence Correction
Modifiers / Logical Predication
V07-04

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399944 V07-04 C E

Your last answer was incorrect

Based on induced stem cell techniques akin to those used for research purposes in
mice to trigger regeneration of repaired cells, scientists are now well set to exploit
stem cell theories into practical cures for a variety of dreaded ailments of man such
as cancer, Parkinsons disease, spinal cord injuries and multiple sclerosis.

Based on induced stem cell techniques akin to those used for research purposes in
mice to trigger regeneration of repaired cells,

Based on induced stem cell techniques akin to those used for research purposes in
mice so that the regeneration of repaired cells may be triggered,

Using induced stem cell techniques akin to those used for research
purposes in mice to regenerate repaired cells,

Using induced stem cell techniques akin to those used for research purposes in
mice, which triggers regeneration of repaired cells,

Using induced stem cell techniques akin to those used for research
purposes in mice that trigger regeneration of repaired cells,
Hide Explanation

(A). Based on induced stem cell techniques akin to those used for research purposes
in mice to trigger regeneration of repaired cells Based on is not the right idiom to
refer/modify to the "scientists"

(B). Based on induced stem cell techniques akin to those used for research purposes
in mice so that the regeneration of repaired cells may be triggered. Same reason as
in A

(C). Using induced stem cell techniques akin to those used for research
purposes in mice to regenerate repaired cells, CORRECT Concise and
properly modifies "Scientists".

(D). Using induced stem cell techniques akin to those used for research purposes in
mice, which triggers regeneration of repaired cells. First part of the modifier is
correct, but "which triggers regeneration of repaired cells" refers to mice, the
nearest noun. That changes the meaning.

(E). Using induced stem cell techniques akin to those used for research
purposes in mice that trigger regeneration of repaired cells. Same reason
as D, just that 'which' is replaced with 'that'.

The correct answer is C

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Verbal
Sentence Correction
Modifiers / Logical Predication
V08-07

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399944 V08-07 E D
 Your last answer was incorrect
The later generation Roman kings, flamboyant sybarites, held parties in their courts,
they sported ethnic delicacies, choicest of cocktails, and randy performances by
courtesans

The later generation Roman kings, flamboyant sybarites, held parties in their
courts, they sported

Parties were held in the courts of the later generation Roman kings, flamboyant
sybarites, which featured

The later generation Roman kings, flamboyant sybarites in their courts, held
parties sporting

The later generation Roman kings, flamboyant sybarites, held parties in their courts
that sported

In their courts, the later generation Roman kings, flamboyant sybarites,

held parties that sported

Hide Explanation

A: A run- on sentence

B: flamboyant sybarites, which featured --- Relative pronoun touch rule foul

C: flamboyant sybarites in their courtswrong diction: If they were sybarites only in

their courts, what were they outside their courts?

D: their courts that sportedcourts do not sport delicacies

E. held parties that sported --- correct modification and correct choice

The correct answer is E

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Verbal
Critical Reasoning
Strengthen
V07-37

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399944 V07-37 E A

Your last answer was incorrect

Last year, seniors at Jasper Countys public high schools performed worse on
standardized college-entrance exams than their peers at Nesbit Countys public high
schools. In recent years, more and more Jasper County residents have been
enrolling their children in private high schools, where the teacher-to-student ratio is
traditionally lower than in public schools, and enrollment in Jasper Countys public
high schools has dwindled as a result. Based only on the information above, parents
residing in Jasper County and concerned about their childs academic future should
pursue which of the following courses of action?

Enroll their child in one of Jasper Countys public schools.

Stay in Jasper County and enroll their child in a private school.

Provide home schooling for their child rather than enrolling the child in
either a public or private school.

Move away from Jasper County and enroll their child in a private school.

Move to Nesbit County and enroll their child in that countys public
schools.

Hide Explanation

Comparatively high test scores among Nesbit Countys senior class constitues some
evidence that Nesbit Countys public schools provide a better education than those in
Jasper County. The argument for enrolling a child in a private school rather than a
public school is weaker because it depends on the additional, unsubstantiated
assumption that a low teacher-to-student ratio results in a higher-quality education.
Moreover, current school-enrollment trends in Jasper County schools suggest that
public schools are becoming more appealing and private schools less appealing
in terms of teacher-to-student ratio. The correct response is (E). The correct answer
is E

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Verbal
Sentence Correction
Sub-Verb Agreement
V02-35

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399944 V02-35 D A

Your last answer was incorrect

In most industries the rising cost of support services actually passes a greater
financial burden to customers; in the legal profession, for example, a current climb
in the cost of court reporting has forced many attorneys to raise their hourly rates.

has forced many attorneys to raise their hourly rates.

has made many attorneys raise their hourly rates.

has meant that many attorneys are being forced to raise their hourly rates.

is forcing many attorneys to raise their hourly rates.

is meaning that many attorneys are raising their hourly rates by force.

Hide Explanation
 1. The past tense has forced does not take into account the fact that the rising
costs are a current trend.
2. Has made incorrectly uses the past tense; the phrase is also both informal
and imprecise.
3. Has meant incorrectly uses the past tense. Has meant and are being
forced use inconsistent verb tenses, and are unnecessary phrases.
4. The phrase is forcing correctly uses the present progressive tense, reflecting a
current trend.
5. By force is a misplaced modifier that confuses the meaning of the sentence; is
meaning is an imprecise phrase.

The correct answer is D

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Verbal
Critical Reasoning
Conclusion / Inference
V07-11

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399944 V07-11 C E

Your last answer was incorrect

United States manufacturers currently produce most of the world's solar-power
generators--most of which are exported to Europe. However, European
manufacturers are emerging and probably will ultimately capture much of the
European market. The United States government is funding initiatives intended to
encourage use of solar power within the United States. If these initiatives
succeed in increasing the demand for solar-power generators in the
United States, United States manufacturers will probably maintain
significant production levels, since ________....HERE SINCE MUST GIVE THE
REASON FOR SUCH A CONCLUSION .HIGH PRODUCTIO LEVELS WITH HIGH
DEMAND IN US I JSUTIFIED WHEN WHEN THEY HAVE ADVANTAGE ..AS
EUROPENS HAVE IN EURIOPE BECAUSE .IN EUROPE AMERICAN COMPANIES
WERE KICKED OUT BUT STIILL ON PROMOTION IN US .THEY ARE GETTING
GOOD PREODICUCTION LEVELS MEANS THEY HAVE SOMETHING TO SUPPORT
.BASICALLY ANYTHING SUPPORTIONG THE CONCLUSION WILL DO THE JOB
SINCE IT IS LIMTED NOWIT WILL MAINTAIN IRONICAL LEVELS IS NONSENSE
HENCE REMOVE E __. Which of the following most logically completes the
argument?

some United States manufacturers have been substantially increasing their output
over the last several years

the efficiency of solar-power generators in converting energy from the Sun into
electric power is not improving as fast as it once did

just as European manufacturers enjoy certain competitive advantages in

Europe, so do United States manufacturers in the United States

European governments are currently undertaking initiatives to stimulate the use of

solar power within Europe

the current market for solar-power generators in the United States is very
limited

Hide Explanation

Fact 1: United States manufacturers currently produce most of the world's solar-
power generators--most of which are exported to Europe. Fact 2: However,
European manufacturers are emerging and probably will ultimately capture much of
the European market. (Assumption It will reduce the US exports to Europe) Fact
3: The United States government is funding initiatives intended to encourage use of
solar power within the United States.

Conclusion :- If these initiatives succeed in increasing the demand for solar-power

generators in the United States, United States manufacturers will probably maintain
significant production levels,-------------

We can see in the 3rd fact that Author has stated that the US Govt has taken
initiative to boost up sales of solar power in the US. This clearly indicates that the
demand for solar power generators is currently not high enough to accommodate
the produce of US generator manufacturers. (This is what Choice E says)

Then Author has concluded that if govt's initiatives succeed in increasing the
demand for solar power generators, US manufacturers will probably maintain
significant production level. Here the author has assumed that the increased demand
of solar power gensets will be fulfilled by supplies of US manufacturers. So next
logical premise would eliminate the possibility of fulfillment of increased demand by
sources other than US manufacturers. Choice C does that job and hence is the
correct answer.

The correct answer is C

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Verbal
Sentence Correction
Rhetorical Construction
V03-40

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399944 V03-40 B D

Your last answer was incorrect

A proposed law would require people to bring photo ID to polling places when they
vote to curb potential fraud.

places when they vote to curb potential fraud

places when they vote, to curb potential fraud

places, when they vote to curb potential fraud

places, when they vote, to curb potential fraud

places, to curb potential fraud by voting

Hide Explanation

The sentence is testing correct placement of modifiers. As the sentence is worded in

the question stem, it seems as if a vote is being taken to decide whether or not to
curb potential fraud. The meaning of the modifying phrase to curb potential fraud
should be clarified.

1. The phrase when they vote to curb potential fraud is misleading

2. The comma placed between vote and to curb correctly separates the two
ideas, making it clear that photo ID is the item intended to curb potential
fraud.
3. The comma is incorrectly inserted after places and does not sufficiently clarify
which part of the sentence to curb potential fraud is intended to modify.
4. The commas setting off the phrase when they vote are unnecessary and do
not help clarify the meaning of the sentence.
5. The comma in this phrase is incorrectly placed, and gives inadequate sense to
the sentence.

The correct answer is B

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399944 V07-01 D
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E

Your last answer was incorrect

A large number of educators surveyed view that higher education especially in
technology subjects as Electronics and Civil Engineering is outdated at present but
that they will or could be made appropriately contemporary in the near future.

that they will, or could,

that they would, or could,

it will be or could

believe that such education will be or can

believe that such education would or could

Hide Explanation
(A) that they will, or could, Incorrect. Antecedent of "they" cannot be "a number of
educators" Also the phrase "in the near future" requires verb to be in future - "can"

(B) that they would, or could, Incorrect. Antecedent of "they" cannot be "a number
of educators" Also the phrase "in the near future" requires verb to be in future -
"will" & can

(C) it will be or could Incorrect. phrase "that higher education.." is not parallel to "it
will be.." Also the phrase "in the near future" requires verb to be in future - can

(D) believe that such education will be or can Correct. phrase "that higher
education.." is parallel to "that such education..

(E) believe that such education would or could Incorrect. the phrase "in the near
future" requires verb to be in future - "will" & can

The correct answer is D

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Verbal
Sentence Correction
Idioms
V06-22

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399944 V06-22 B A

Your last answer was incorrect

The Gourmet Beer Bill proposes that a decades-old beer ban, against bottles
containing more than 8% alcohol per volume, be lifted.

beer ban, against bottles containing more than 8% alcohol per volume, be lifted

ban on selling bottled beers containing more than 8% alcohol per volume
be lifted

ban on bottled beers sold containing more than 8% alcohol per volume be lifted
ban be lifted against selling bottled beers containing more than 8% alcohol per
volume

ban over bottled beers that are sold containing more than 8% alcohol per volume
should be lifted

Hide Explanation

The answer to this question depends on the correct idiomatic usage of the
preposition on to designate the object of a ban. The correct answer will also be
concise rather than wordy.

1. This option is wordy and incorrectly uses the word against when referring to a
ban.
2. This option is concise and correctly uses the idiom ban on.
3. The word sold is misplaced and makes the sentence hard to understand.
4. Against is incorrect for this idiom.
5. The word over is used incorrectly, and this option is wordy and confusing.

The correct answer is B

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Verbal
Sentence Correction
Modifiers / Logical Predication
V07-01

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399944 V07-01 D E

Your last answer was incorrect

A large number of educators surveyed view that higher education especially in
technology subjects as Electronics and Civil Engineering is outdated at present but
that they will or could be made appropriately contemporary in the near future.

that they will, or could,

that they would, or could,

it will be or could

believe that such education will be or can

believe that such education would or could

Hide Explanation

(A) that they will, or could, Incorrect. Antecedent of "they" cannot be "a number of
educators" Also the phrase "in the near future" requires verb to be in future - "can"

(B) that they would, or could, Incorrect. Antecedent of "they" cannot be "a
number of educators" Also the phrase "in the near future" requires verb to be in
future - "will" & can

(C) it will be or could Incorrect. phrase "that higher education.." is not parallel
to "it will be.." Also the phrase "in the near future" requires verb to be in future -
can

(D) believe that such education will be or can Correct. phrase "that higher
education.." is parallel to "that such education..

(E) believe that such education would or could Incorrect. the phrase "in the near
future" requires verb to be in future - "will" & can

The correct answer is D

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Verbal
Sentence Correction
Parallelism
V08-12
ReviewedBookmark
399944 V08-12 C D

Your last answer was incorrect

In a recently conducted study, Harvard Scientists have linked a molecule to PGC-1
alpha FNDC5, a protein that enhances the expression of brain-health, not only as
promoting the development of new nerves and synapses in the hippocampus of the
adult brain, but also preserving existing brain cells.

In a recently conducted study, Harvard Scientists have linked a molecule to PGC-1

alpha FNDC5, a protein that enhances the expression of brain-health, not only as
promoting the development of new nerves and synapses in the hippocampus of the
adult brain, but also preserving existing brain cells.

In a recently conducted study by Harvard Scientists, a molecule PGC-1 alpha FNDC5,

a protein enhancing the expression of brain-health, not only promotes the
development of new nerves and synapses in the hippocampus of the adult brain, but
also preserves existing brain cells.

In a recently conducted study by Harvard Scientists, the researchers have

linked a molecule to PGC-1 alpha FNDC5, a protein that enhances the
expression of brain-health, saying that it not only promotes the
development of new nerves and synapses in the hippocampus of the adult
brain, but also preserves existing brain cells.

Linking a molecule PGC-1 alpha to FNDC5, a protein that enhances the

expression of brain-health, Harvard Scientists claim that the factor not
only promotes the development of new nerves and synapses in the
hippocampus of the adult brain, but also preserves existing brain cells in a
recently conducted study.

In a recently conducted study by Harvard Scientists, which linked a molecule PGC-1

alpha to FNDC5, a protein enhancing the expression of brain-health, it not only
promotes the development of new nerves and synapses in the hippocampus of the
adult brain, but also preserves existing brain cells

Hide Explanation

A. not only as promoting, but also preserving -- unparallel

B. distorted meaning; It looks as if the molecules promotes something in a study

C. Correct Choice
D. preserves existing brain cells in a recently conducted study" means
that the preservation was done in a study and not outside

E. It is not clear what is the referent for the pronoun it; it may refer to study or the
molecule

The correct answer is C

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