winterschool
Q1. In order to protect its domestic sugar cane growers, the government of Country X decided to impose a steep tax on all imported cane juice, which is used a sweetener. As a direct result of this tax, the price of cane juice in Country X rose sharply. After the tax was imposed, all the country’s soft drink companies, which had before used cane juice as a sweetener in their drinks, switched to another sweetener, high fructose corn syrup, in order to maintain their cost structures. Which of the following can be most properly inferred from the passage above? A. The amount of cane juice required to sweeten one soft drink cost approximately the same as the amount of high fructose corn syrup required to sweeten one soft drink prior to the imposition of the cane juice import tax. B. Soft drink companies in Country X hoped to sell their products in the same countries that were traditionally known to export cane juice to Country X. C. The number of sugar cane growers in Country X increased after the imposition of the import tax on cane juice in Country X. D. Soft drink companies in Country X had considered a switch from cane juice to high fructose corn syrup prior to the decision by the government of Country X to impose the tax on all imported cane juice. E. The amount of cane juice imported by Country X exceeded the amount produced domestically prior to the imposition of import taxes by the government of Country X. Difficulty - Hard
winterschool
Q2. A greater number of newspapers are sold in Town S than in Town T. Therefore, the citizens of Town S are better informed about major world events than are the citizens of Town T. Each of the following, if true, weakens the conclusion above EXCEPT: (A) Town S has a larger population than Town T. (B) Most citizens of Town T work in Town S and buy their newspapers there. (C) The average citizen of Town S spends less time reading newspapers than does the average citizen of Town T. (D) A weekly newspaper restricted to the coverage of local events is published in Town S. (E) The average newsstand price of newspapers sold in Town S is lower than the average price of newspapers sold in Town T. Difficulty - Hard
CR Questions December - 09 :Q1. The mind and the immune system have been shown to be intimately linked, and scientists are consistently finding that doing good deeds benefits one’s immune system. The bone marrow and spleen, which produce the white blood cells needed to fight infection, are both connected by neural pathways to the brain. Recent research has shown that the activity of these white blood cells is stimulated by beneficial chemicals produced by the brain as a result of magnanimous behavior.
The statements above, if true, support the view that
(A) good deeds must be based on unselfish motives
(B) lack of magnanimity is the cause of most serious illnesses
(C) magnanimous behavior can be regulated by the presence or absence of certain chemicals in the brain
(D) magnanimity is beneficial to one’s own interests
(E) the number of white blood cells will increase radically if behavior is consistently magnanimous
Q2. Large corporations use several strategies to minimize their tax payments, without doing anything explicitly illegal. One such strategy involves the use of transfer pricing, when subsidiaries in different countries charge each other for goods or services “sold” within the group. This is particularly popular among technology and drug companies that have lots of intellectual property, the value of which is especially subjective. These intra-company royalty transactions are supposed to be arm’s-length, but are often priced to minimize profits in high-tax countries and maximize them in low-tax ones.
If the above statements are true, then which of the following could be a strategy adopted by a company that wants to get the maximum benefit out of transfer pricing?
(A) Sell its subsidiary located in a high tax rate country products at low prices
(B) Charge its subsidiary located in a low tax rate country higher prices for products sold
(C) Pay its subsidiary located in a high tax rate country high prices for products bought
(D) Pay its subsidiary located in a low tax rate country low prices for products bought
(E) Pay its subsidiary located in a low tax rate country high prices for products bought
Difficulty - Hard