Many political economists believe that the soundest indicator of the

1. Which one of the following titles most accurately expresses the main point of the passage?

(A) “The Shifting Meaning of Per Capita GNP: A Historical Perspective”. Incorrect. Meaning of Per Capita GNP is only explained. No Shifting in meaning considered.
(B) “A Defense of Per Capita GNP: An Economist’s Rejoinder”. Incorrect. Per Capita GNP is not defensed. In fact its weakness are provided in the passage.
(C) “The Preferability of Human Indicators as Measures of National Economic Health”. Correct. The human indicators are the preferred as measures of National Economic Health.
(D) “Total Wealth vs. Distribution of Wealth as a Measure of Economic Health”. Incorrect. Its only mentioned in the passage.
Its not the main point.
(E) “A New Method of Calculating Per Capita GNP to Measure National Economic Health”. Incorrect. No new method described in the passage.

2. The term “welfare” is used in the first paragraph to refer most specifically to which one of the following?

(A) the overall quality of life for individuals in a nation. Correct. Examples of human indicators suggest the quality of life for individuals in a nation.
(B) the services provided to individuals by a government. Incorrect. Partial scope. Only one of the human indicators.
(C) the material wealth owned by individuals in a nation. Incorrect. it is not discussed in the first paragraph.
(D) the extent to which the distribution of wealth among individuals in a nation is balanced.Incorrect. it is not discussed in the first paragraph.
(E) government efforts to redistribute wealth across society as a whole. Incorrect not discusssed in the passage.


3. The passage provides specific information about each of the following EXCEPT:

(A) how per capita GNP is calculated.
(B) what many political economists believe to be an accurate measure of a nation’s economic health
(C) how nations with a relatively low per capita GNP can sometimes be economically healthier than nations whose per capita GNP is higher
(D) why human indicators may not provide the same picture of a nation’s economic health that per capita GNP does
(E) how nations can adjust their domestic economic efforts to bring about substantial improvements in per capita GNP. Correct. No such idea discussed in the passage.

4. Which one of the following scenarios, if true, would most clearly be a counterexample to the views expressed in the last paragraph of the passage?

(A) The decision by a nation with a low level of economic health as measured by human indicators to focus on increasing the levels of human indicators results in slower growth in its per capita GNP.
(B) The decision by a nation with a low level of economic health as measured by human indicators to focus on increasing domestic production of goods results in significant improvements in the levels of human indicators. Correct. In Paragraph 3, it is stated that a nation should divert its focus to increase the level of human indicators however as per this choice the shift towards increase in GNP increases the level of economic health. So this action is opposite to what is mentioned in third paragraph
(C) The decision by a nation with a low level of economic health as measured by human indicators to focus on increasing the levels of human indicators results in increased growth in per capita GNP.
(D) The decision by a nation with a low per capita GNP to focus on improving its level of economic health as measured by human indicators fails to bring about an increase in per capita GNP.
(E) The decision by a nation with a low per capita GNP to focus on increasing domestic production of goods fails to improve its economic health as measured by human indicators.

5. The primary function of the last paragraph of the passage is to

(A) offer a synthesis of the opposing positions outlined in the first two paragraphs.. Incorrect. First two paragraph are not opposite but in same direction.
(B) expose the inadequacies of both positions outlined in the first two paragraphs. Incorrect. There is a single position in the first two paragraphs.
(C) summarize the argument made in the first two paragraphs. Incorrect. Third paragraph states the implications of adopting the policies as per two paragraphs.
(D) correct a weakness in the political economists’ position as outlined in the second paragraph. Incorrect.
(E) suggest policy implications of the argument made in the first two paragraphs. Correct.


6. Based on the passage, the political economists discussed in the passage would be most likely to agree with which one of the following statements?

(A) A change in a nation’s per capita GNP predicts a similar future change in the state of human indicators in that nation. Correct. It is mentioned in the first sentence of second paragraph.
(B) The level of human indicators in a nation is irrelevant to the welfare of the individuals in that nation. Incorrect. Not mentioned in the passage.
(C) A high per capita GNP in a nation usually indicates that the wealth in the nation is not distributed across the society as a whole. Incorrect. This is not mentioned in the passage.
(D) The welfare of a nation’s residents is irrelevant to the economic health of the nation. Incorrect. This is not mentioned in the passage.
(E) The use of indicators other than material wealth to measure economic well-being would benefit a nation. Incorrect. This is author's viewpoint.

7. In the passage, the author’s primary concern is to

(A) delineate a new method of directing domestic economic efforts. Incorrect. The author describes the better indicators of economic level of nation but not the method.
(B) point out the weaknesses in one standard for measuring a nation’s welfare. Correct. The weakness of Per Capita GNP as an economic welfare indicator is the purpose of passage.
(C) explain the fact that some nations have both a high per capita GNP and a low quality of life for its citizens. Incorrect. partial scope.
(D) demonstrate that unequal distribution of wealth is an inevitable result of a high per capita GNP. Incorrect Partial Scope.
(E) argue that political economists alone should be responsible for economic policy decisions. Incorrect. No such argument made.