Part 1 Critical Thinking Test

PART
1 CRITICAL THINKING TEST
1. According to Augustine, a medieval Christian scholar, the state is necessary because

there is a need for an institution to correct human beings due to the effects of original
sin.

Which of the statements below correctly describes the above passage?
a. The passage presents an argument
b. The passage reports an argument
c. The passage expounds on an argument
d. The passage explains an argument

2. Different people perceive things differently and adopt different approaches to knowing.
This results in the different ways they theorize about reality, hence, theories differ in
terms of how they were generated and how they are presented.

Which of the statements below correctly describes the above passage?
a. The passage has a premise-conclusion structure.
b. The passage justifies a forgone conclusion with an after-the-fact premise.
c. The passage justifies a after-the-fact conclusion with a perceived premise.
d. The passage has a cause-effect relationship.

3. It is the function of Congress to enact or amend laws. It has the necessary power,
therefore, to amend the law of supply and demand. This will make the market,
especially with regard to the price of commodities, easier to regulate.

Which of the following explains the weakness of the above argument?
a. The argument stresses the irrelevant term and issue.
b. The argument employs terms with more than one meaning.
c. The argument transfers to the whole what is true of its parts.
d. The argument appeals to a commonly held sentiment.

4. If we place a solid homogenous mass, in the form of a sphere or cube, in a medium
maintained at a constant temperature, it will acquire at all points a temperature
differing very little from that of the fluid. This is the case of this object now almost as
hot as the liquid in which it is immersed.

Which of the following strengthens the claim of the above argument?
a. The object has just been immersed
b. The object has been immersed at short intervals
c. The object has been immersed for a long time
d. The object has been immersed in a liquid of hot temperature

5. Whenever there are import restrictions, the economic costs are larger than the benefit,
import restrictions are government regulations. It must be concluded that all
government regulations will result in larger economic costs than benefits.

Which of the following weakens the claim of the above argument?
a. The premise is lacking
b. The terms are ambiguous
c. The argument is farfetched
d. The conclusion is sweeping

6. Angiosperms are flowering plants which develop seeds within a protective structure.
They are not classified as animals because they are incapable of locomotion.

Which of the following strengthens the claim of the above argument?
a. All animals are capable of locomotion
b. All animals are not capable of locomotion
c. No plants are capable of locomotion
d. No plants are incapable of locomotion

7. The proposed divorce bill should not be passed. It cheapens marital commitment and
destroys the family. The moment the family is destroyed, all the other social institutions
will come crumbling down. The family holds the fabric of society together.

Which of the following explains the weakness of the above argument?
a. The argument is poisoning of the well discourse.
b. The argument is a kind of slippery slope
c. The argument diverts from the main issue of discussion
d. The argument is a kind of ignorance of the proof

8. If cigarette are hazardous to health, then cigarette advertising should be outlawed;

But if smoking is a personal choice, then cigarette advertising should not be outlawed;

Which of the following is the best conclusion of the above syllogism?
a. If smoking is a personal choice, then cigarettes are hazardous to health
b. If smoking is a personal choice, then cigarettes are not hazardous to health
c. If smoking is not a personal choice, then cigarettes are hazardous to health
d. If smoking is not a personal choice, then cigarettes are not hazardous to health

9. Some taxes for public purposes are taxes only on land because all taxes are levied for
public purposes.

Which of the following is the missing premise in the above syllogism?
a. All taxes for public purposes are land taxes
b. Not all taxes are levied only on land
c. All taxes are levied only on land
d. Some taxes are levied only on land

10. If the recipient of the message has large latitude of rejection, then more messages
would be offensive to him. If his latitude of acceptance is larger, then it would be easier
to influence the recipient of the message.

Which of the following is the best conclusion of the above syllogism?
a. Either the recipient of the message does not have a large latitude of rejection or his
latitude of acceptance is not larger
b. Either the recipient of the message has a large latitude of rejection or his latitude of
acceptance is larger
c. Either the recipient of the message does not have a large latitude of rejection or his
latitude of acceptance is larger
d. Either the recipient of the message has a large latitude of rejection or his latitude of
acceptance is not larger

11. Specific chemical reactions occur at the cellular level. Hence, metabolism refers to all
the chemical reactions occurring within an organism.

Which of the following is the best assessment of the above passage?
a. Both statements are true and related with the first statement a proper premise for
the conclusion in the second statement
b. Both statements are true but the first statement is unrelated as a premise to the
second statement
c. The first statement is true but the second is false
d. The first statement is false but the second is true

12. The fact that all rock types are not liquid substances, some of which are amorphous
solids, it follows that some amorphous solids are not rock types.

a. The conclusion is necessarily true
b. The conclusion is necessarily false
c. The conclusion is probably true
d. The conclusion is probably false

13. Success of business organizations rely on a number of skills. For one, conceptual skills
involve using information to solve business problems and are therefore essential.
However, consistent high quality service is not essential for the survival of the
organization

a. The second and third sentences are true and related as premise-conclusion..
b. The second and third sentences are true but unrelated as premise-conclusion
c. The second sentence is true but the third sentence is false
d. The second sentence is false but the third sentence is true

14. In social exchange theory, exchanged resources are classified into two: rewards and
costs. Rewards are exchanged resources that bring pleasure satisfaction. Costs are
exchanged resources that are perceived as a loss or punishment.

Which of the following is definitely True?
a. All rewards are not unsatisfactory exchanges
b. Some satisfactory exchanges are rewards
c. All of the above
d. None of the above

Which of the following is definitely False?
a. All rewards are pleasurable and satisfactory
b. No rewards are pleasurable and satisfactory
c. All of the above


Which of the following can either be True or False?
a. All exchanged resources are costs
b. Some exchanged resources are costs
c. All of the above

17. All traditional organizations are hesitant to change. They insist that if something is
working there is no need to change it. Most companies today adopt a different attitude
to change.

Which of the following is negated by the above proposition?
a. No traditional organizations are hesitant to change
b. Not all traditional organizations are hesitant to change
c. All of the above

18. People once thought that the moon was made entirely out of cheese. Some believed
that a large rabbit lived in the moon. Others maintained that the moon was perpetually
devoured and spat out by a celestial snake. Of course, we all know these were myths
and legends cooked up by folks who didn’t know any better.

The passage above would most closely conform to which one of the following
principles?
a. The moon, like the planet and the stars, has always been an object of fascination
b. People in the ancient times were not as smart as the people today
c. People in the ancient times were more fascinated with the moon as people are
today
d. Scientific advancements have allowed us to explain most ancient myths and legends

19. Blood letting was a common cure to illness for around 2,000 years. Physicians and
healers would withdraw blood of patients in an effort to maintain “balance” within the
body. However, modern medicine has abandoned the practice of blood letting. Blood
letting was said to have been the cause of (or at least accelerate) George Washington’s
death. Stuck with a cold and sore throat, his doctors decided to bleed him of about five
pints of blood.

What does the above passage show?
a. Well-intentioned solutions can, at times, do more harm than good
b. Medical advances are slow and unreliable
c. History is bereft of good physicians and healers
d. A negative result may be outweighed by its potential positive results

20. Technological advances have made people more connected via social media and the
“sharing” economy. The emergence of social media has provided a whole host of novel
legal issues, such as the interplay between the right of privacy and different privacy
settings of social media tools like Facebook and Twitter. The new “sharing” economy,
highlighted by services like Uber and AirBnB, has also pinpointed loopholes and
deficiencies in current laws. New laws must address these loopholes and deficiencies to
allow these sharing services to grow to its full potential, while still maintaining a
semblance of regulation to protect the general public

The reasoning above would most closely conform to which of the following principles?
a. An originalist approach to interpreting laws allows regulators to subsume the impact
of new technology within the current legal framework
b. Many technological advances have unanticipated consequences in the law
c. Technology is, at its core, neutral. It is only how we wield new technology that
affects whether new laws should be passed or not
d. People must be mindful of possible consequences of using new technology

21. One of the main problems in implementing change, whether in a macro, micro, or
personal level, is the adverse perception society has to admitting ignorance. People
would rather go through the motions of following precedents, relying on habit, and
trusting conventional wisdom than doing proper injury and reflection. The result, of
course, is that innovation comes to a standstill and the change we expect never comes
to fruition.

a. Conventional wisdom has no basis in an examined life
b. Precedents must give way to ignorance, especially when ignorance will not breed
results
c. Society puts a high premium on people who claim to know, rather than people who
claim to not know
d. Admitting ignorance, while frowned upon by society, is the true start of the learning
process

22. A lot of historical revisionists have posited Ferdinand Marcos as an ideal president. They
claim the Philippines was set to be the next Singapore under his presidency. Of course,
they conveniently overlook the atrocities and human rights violations committed while
he was the President. This included hundreds, if not thousands, of extrajudicial killings,
political prisoners, forced exiles, and a judicial system willing to bow down to his every
whim. They also overestimate his contribution to the economy masking their conclusion
on faulty assumptions and filtering data which do not serve their belief that Marcos was
the best President the country ever had. It is quite sad and shocking how people are
easily manipulated.

a. People have a tendency to ignore facts which do not support their own conclusion
b. People have a tendency to look at the past with rose-covered glasses
c. People have a tendency to believe everything in the media
d. People have a tendency to look at the past for examples of great leadership

23. Taxes are enforced contributions imposed by a sovereign authority to raise revenue in
order to fuel the government machinery. License fees and business permits are not
imposed for revenue purposes; these are for regulatory purposes. Hence, according to
the Supreme Court, (which has the ultimate power to interpret tax laws), if your
business is exempt from taxes, it will not necessarily equate to an exemption from
license fees and business permits

The author reaches his or her conclusion by:
a. Drawing an analogy
b. Appealing to an authority
c. Finding an exception to a general rule
d. Arguing from a definition

24. During the Nazi era in Germany, numerous laws and policies that institutionalized
racism and discrimination were passed. If these laws were studied today, it is beyond
doubt that these laws and policies would not even be considered, given how society
eschews institutional discrimination. However, at that time, policymakers and legislators
considered the laws proper, as these laws were ultimately given the imprimatur by
Hitler and the ruling Nazi party.

The conclusion reached by the German policymakers and lawmakers that the law and
policies were proper was mainly based on:
a. Appealing to the authority of Adolf Hitler
b. Attributing to the propriety of the laws to the decline of German economy because
of the presence of the Jews and other minorities
c. Appealing to the authority of Nazi-backed social studies that showed the purported
inherent inferiority of the Jews and other minorities
d. Considering the laws necessary given the political climate at that time

25. There have been numerous (and rather embarrassing) predictions regarding the effect
of technology. Great thinkers have often predicted that new technology will not work or
fail after the wave of first adopters. For example, Thomas Watson, the chairman of IBM,
once said, “I think there is a world market for maybe five computers.”

What do these predictions fail to assume?
a. That the human mind is incapable of conceiving all possible future scenarios
b. That technology will always benefit humans
c. That first adopters do not understand that most advances are merely fads
d. That humans underestimate the power of predictions

26. In an investigation for murder, the detective found that there were only three people
last seen with the forty-year-old victim before he died. The first was the victim’s eight-
year-old niece who had a history of child depression. The second was the victim’s best
friend who the victim entrusted with his financial affairs. The third was the victim’s
ninety-year-old mother whose left arm was amputated due to gangrene. The victim was
stabbed before he was strangled to death with an electric cord. After studying the
dossiers of each, the detective determined that the killer had to be the victim’s best
friend.

Choose the best assumption that helped the detective narrow down the suspect list to
the best friend.
a. A man entrusted with the financial affairs of another has enough motive to kill
b. A person of tender or old age will find it difficult to overpower a grown man
c. Depression would most likely lead to suicide, not murder
d. A mother would never kill her child

27. A sports analyst wants to prove that the best rebounders in basketball are not only tall
but also have a wide wingspan. To prove his theory, he compiled a compared statistics
of four basketball players. Among the following players, whose statistics should show
that wingspan matters in grabbing rebounds?

a. Meb Hollister, who stands 7’5” with a wingspan of 8’10”. He averages 9 rebounds a
game
b. Julies Santos, who stands 7’1”with a wingspan of 9”. She averages 12 rebounds a
game
c. Klayton Smith, who stands 7’3” with a wingspan of 7’5”. He averages 10 rebounds a
game
d. Rich Alvarado, who stands 6’8” with a wingspan of 6’8”. He averages 8 rebounds a
game

28. Extremists have been a viable threat to world peace and cooperation. Some studies
have posited that the most effective way to combat extremism is for proper integration
of different cultures or religions in a country.

Assuming the following are available and true, which does not help strengthen the
argument above?
a. Data showing that a majority of countries with no state religion is not a hotbed of
extremists
b. Data showing that a country that advocates diversity in its schools has not had
extremist attacks in the past 30 years
c. Data showing that a country that limits immigration to followers of a certain religion
has a high number of extremists
d. Data showing that a country that limits immigration to followers of a certain religion
has a low number of extremists

29. The Schrodinger’s cat is a thought experiment that questions an object’s existence in a
room not visible to the viewer. It has become a widespread paradox, most popularly
known as the possibility of a cat being both alive and dead at the same time. The inquiry
suggests that an object may or may not exist when alone in a room. In line with this,
Jean Piaget, a Swiss psychologist argues that an infant through early interaction may
have objects existing to him whether it is not within the range of his senses

What is the reasoning behind why the query is considered a paradox?
a. It is impossible for an object to be two opposing things at the same given time
b. Infants are still in development stages and do not fully understand the things around
them
c. It is contradictory to our perception of object permanence
d. The argument is circular in nature

30. A massive meteor shower is the most common accepted explanation as to why the
dinosaurs died out. This theory is backed up by several phenomena such as existing
meteors still colliding with the Earth’s atmosphere and the presence of meteor craters
on the Earth’s surface that date back to the time of the great reptiles. Although there
have been many contending theories behind this issue, such as freak weather
disturbances natural selection at work, the meteor shower continues to hold a strong
place in the number one spot. Why is this so?
a. The media is able to sell movies about dinosaurs and meteors better and has such
involved themselves in the establishment of this theory
b. Freak weather disturbances still happen today but have not been sufficient enough
to wipe out entire species from the face of the planet
c. Natural selection argues toward a stronger species out-living the weaker ones but in
the case of dinosaurs, no stronger species seems to have replaced them immediately
d. Hard evidence such as the presence of craters provides both the scientific
community and general public a wider insight into the extinction of dinosaurs

31. The Milgram experiment was a series of psychological tests that measured the
willingness of participants to obey authority figures who instructed them to perform
certain actions despite it conflicting with their personal conscience. The goal of the
experiment was simple, to look into the possibility of Nazi war criminal Adolf Eichmann
and his million accomplices as just following orders.

The experiment involved three people, the person running the experiment, the subject
who was a volunteer, and a confederate who also pretended to be a volunteer. The first
person took on an authoritative role, the second was to obey the commands of the first,
and the third was to whom the commands were directed to. The second person who
was called the teacher was supposed to teach word pairs to the third person called the
learner with the authoritative person giving the teacher instructions. If the word pairing
was wrong, the teacher was supposed to administer electrical shocks to the learner.
Eventually, these shocks grew in intensity. Of course, the confederate and the one
running the experiment knew that the shocks were fake but through convincing acting,
the teacher had no idea that it was all a set-up. Despite most teachers feeling very
uncomfortable, sweating, trembling, stuttering, biting their lips, groaning, digging their
nails into their skin, etc. a majority still continued to administer the shocks until the
highest voltage output at the prodding of the authority figure.

Before the experiment, preliminary hypothesis of various psychologists and psychiatrists
was that only a very small portion of the respondents would shock the learner. They
told Milgram that one the confederate announced the immense pain he was suffering,
the teacher would stop. This did not turn out to be the case. The experiment has been
repeated many times and the number of people who continue the experiment up until
final shock has remained at a constant 61-66% regardless of which country it was
conducted in.

What principle did the experiment prove?
a. That Nazis were clearly only following orders and were not acting on their own
volition
b. War criminals must be subject to pardon especially after seeing that more than half
of the experimental population would have done the same thing
c. People lack the resources to disobey authority which can lead to perilous results
d. Human nature coats a desire for sadism under the guise of proper breeding and
civilization

32. The Aztecs are regarded as one of the most advanced ancient civilizations because of
their many innovations and contributions to early architecture, agriculture, sciences and
art. They were a strongly ritual oriented people who attributed every event as a work of
the gods. This translated into their society revolving around keeping themselves in their
god’s good favour by way of human sacrifice. From bountiful harvests to plagues and
calamities, the Aztecs responded with spilling of blood. As time passed, these sacrifices
became more frequent and had evolved into an equation of more lives sacrificed
meaning happier and more satisfied deities. Some of the offerings took it as an honor
for their lives to be taken but a number would resist which would result in civil unrest.

What can be drawn from the following passage?
a. The Aztecs were a brutal people who did not have a high regard for social ties since
this would have made the ritual of human sacrifice a more emotionally difficult task
b. Eventually, the Aztecs were not able to sacrifice enough people which was punished
by the gods with a decisive end to their civilization
c. Human sacrifice was a successful practice which allowed the Aztecs the level of
advancement that they had reached
d. Human sacrifice may have been a key factor in the end of the Aztec civilization

33. Puppies that grow accustomed to biting will grow up to be dogs that bite as well. To
avoid this, owners take lengths to train their pets. The most popular way of training
dogs not to bite is by spraying them water every time they rear their teeth. Whether
aggressive or playful, the dog must be sprayed in the face. After months of doing so, the
biting habits will have changed. Why is this so?

a. The dogs become confused and forget their natural instinct. Spraying them with
water is type of brainwashing that clouds their urge to bite
b. The water had nothing to do with it. All puppies have gnawing stages while their
teeth start to grow. Since this stage will go away by itself and happens along with
the spraying, a common misconception grew about the dog community about the
water being a solution to the problem
c. The dogs notice that the spray happens both when they are aggressive and playful,
and so develop a timid nature that involves shying away from people
d. Water is generally unpleasant to dogs and once they sense the pattern of the
spraying, adapt to avoid any more unpleasantries.

34. To remedy the traffic problem along Katipunan Avenue, stoplights were installed to
further control traffic flow. Based on feasibility reports, stoplights were placed at key
points where traffic congestion happened the most. The goal of this project was to
facilitate vehicle movement and reduce clogging.

After the implementation of the project, the traffic seemed to worsen, contrary to the
expected outcome. Time wasted on the road was increased by a shocking hundred
percent. Citizens began to about the entire situation; spending tax money on a project
that did not fulfil its purpose and became an entire problem on its own.

However, after a month, traffic lightened. Cars and motor vehicles began to move more
smoothly. While there was still a delay caused by too many vehicles on the road at one
point in time, it was now just a fraction of what it used to be before the stoplights.

What conclusion can summarize the entire scenario?
a. Citizens are quick to react when it involves shaming the government for its
inefficiency but don’t care to make an effort to applaud its achievements
b. The government team working on traffic flow in Katipunan Avenue were successful
in determining key points of congestion
c. The traffic lights just needed some getting used to before it showed its benefits
d. There are too many cars in Metro Manila

35. Child: During my vacation I visited Taal Volcano and on my way to the peak, I saw holes
in the ground with steam coming out. Three years ago, my mother was making coffee
for my dad and I heard the kettle whistling. It had smoke coming out and because I was
curious went near it and placed my hand over the steam. I got burned. Because of this,
even though I did not touch the steam coming from the cracks in the ground in Taal, I
know that it was hot.

What was the process behind the child’s reasoning?
a. Learning from his basic sciences, he knows that the Volcano contains lava and he can
therefore conclude that it is hot
b. He draws his inference from personal experience
c. His mother reminded him about the kettle incident and told him not to touch the
steam
d. The holes in the ground looked similar to the kettle’s own spout and as such, he
realized that the volcano was acting like kettle heating water

36. The American Dental Association claims that the physical act of chewing increases the
flow of saliva in a person’s mouth. Said increase in saliva flow helps neutralize and wash
away the acids that are produced when food is broken down by the bacteria in plaque.
Likewise, the increased saliva flow carries calcium and phosphate to help strengthen the
tooth enamel.

From the statement above, what can be validly assumed?
a. Acid build up can break down tooth enamel
b. The American Dental Association recommends brushing twice a day with fluoride
toothpaste
c. The American Dental Association has placed its seal over a number of sugar-free
chewing gums
d. Chewing sugarless gum following meals can help prevent tooth decay

37. An assumption is something we take for granted or presuppose. It is usually something
we have previously learned and therefore do not question. It is part of our system of
beliefs, and as such is assumed to be true. We use our assumptions to interpret the
world around us. For example, if we believe that it is dangerous to walk late at night in
big cities, and we are staying in Metro Manila, then we assume that it is dangerous to
walk late at night in Metro Manila.

Which of the following is a valid assumption based on the argument?
a. Metro Manila is a big city
b. To be skilled in critical thinking is to be able to take one’s thinking apart
systematically and analyse each part, assess it for quality and then improve it
c. If our belief is a sound one, our assumption is sound. However, if our belief is not
sound, our assumption is likewise not sound
d. Critical thinking is the art of bringing what is subconscious in our thought to the level
of conscious realization

38.
Traffic accidents 2008 2009 2010
Casualties 4,862 8,687 7,687
Fatal 508 1,117 1,262
Non-fatal 4,354 7,570 6,408
Vehicles involved 9,932 15,750 17,979

Given the table above, what argument can best support the statement that divers were
most careless in the year 2010 as compared to 2008 and 2009?
a. There were less cars on the roads in general in 2008 and as such, creates an
erroneous benchmark to support any claim
b. Despite less non-fatal casualties as compared to the year before, fatalities had
increased
c. The number of fatalities had doubled and vehicles involved had almost doubled
when comparing 2010 to 2008
d. While there were less casualties, more vehicles were involved in the traffic accidents
in 2010

39. There is too much food in the United States. This causes two major problems for the
country. First, obesity has become more and more alarming as the years progress and as
the trend is going, there are no signs of numbers going down with more people being
affected by the disease each day. Second, it creates a wastage problem where excess
food that is not fully or not consumed at all is disposed. The food waste of the United
States is more than any other country.

On the other hand, there is not enough food in the countries of Africa. People who live
in the most impoverished places in the continent struggle to get even just one meal a
day, and even this is a feat in itself. Death tolls caused by starvation and malnutrition
are very common place. Food scraps of any kind are an everyday sight in such
communities.

The answer then to this hunger is simple; divert the excess food from the United States
to the poorest in Africa. Not only do you solve the obesity and wastage problem of the
US, but save African nationals from hunger in the process as well

The proposed solution is wrong because… (Choose the best statement that will disprove
the solution)
a. Comparing a country to an entire continent creates an imbalance in the discussion.
While the US boasts a large population, it cannot be used as a proper point of
reference
b. It is not logistically possible to simply divert food from one continent to the other
c. Based on the argument, the US will be giving food wastage to Africa and while this
may solve the problem of food shortage, it will not stop malnutrition
d. Obesity is not only caused by over eating but by the consumption of unhealthy food.
The problem should not revolve around the amount of food but on its security

40. There are many Filipinos who feel that the Philippines would have been a more
successful country if not for the 333 years it spent under Spanish rule. With the
country’s vast wealth in natural resources, good guidance from an experienced nation
would have gone a long way in furthering economy and society. Instead, the country
and its people faced abuse at the hands of Spain. Resources were plundered and
freedom was greatly oppressed by the colonizers/ If not for Spain’s tight grasp, and if
perhaps some other power, like Great Britain for instance had been our colonizers, we
as a nation would have been classified as a developed country by now.

Why is the argument not a sound one?
a. The Philippines was occupied by two other leading nations, namely the US and
Japan, but still did not improve in terms of economy as a nation
b. Colonizers in general, no matter how benevolent they may seem, are in it for the
wealth they can gain for their own homeland. It doesn’t matter what nationality
they are, abuse will always be present
c. Spain gave us Christianity and may among our traditions, their rule over us wasn’t as
bad as the argument makes it out to be
d. Great Britain conquered India and India did not prosper under them

PART 2 Verbal Analytical Reasoning
1. Compensation income is generally taxable in the year of receipt. If payment is in cash,

then the whole amount is subject to tax. So when an income is not wholly taxable it
means payment was made in kind.

Which of the following resolves the discrepancy in the above argument?

a) The premise should be denied
b) The premise should be affirmed
c) The conclusion should be denied
d) The conclusion should be affirmed

2. An economic asset cannot be a capital and an ordinary asset at the same time. Property
used in the business like office equipment is not a capital asset.

Which statement below is the correct evaluation of the above passage?

a) There can be no conclusion
b) There can be a conclusion
c) There should be more premises
d) There should be less premises

3. Some capital gains are not business incomes. All capital gains are derived from the sale
and exchange of capital assets. Therefore, all gains from the sale and exchange of capital
assets are not business incomes.

Which of the following causes the discrepancy in the above argument?
a. The premise is a particular statement
b. The premise is universal statement
c. The conclusion is a particular statement
d. The conclusion is a universal statement

4. Commuters in metro manila have numerous choices when it comes to public
transportation. The cheapest but least comfortable would be a jeepney ride while the
priciest but most comfortable one would be a taxi cab. FX shuttles cost only a little more
than what jeepneys would charge but are more comfortable. Logically we would assume
that more commuters would choose to ride FX shuttles because they are relatively
cheap and are more comfortable than jeepneys. Thus, it is surprising that most
commuters prefer to ride jeepneys.

a. Even though taxis and FX shuttles are more comfortable for commuters, they cost
more
b. It is easier to catch a jeepney ride because there are more of them compared to FX
shuttles
c. Paying the extra fee for FX shuttles is not worth it for commuters because jeepneys
can be comfortable when not full
d. Paying the extra fee for FX shuttles is not worth it for commuters because FX
shuttles are not as comfortable as taxes

5. The human resources head of an organization decided to interview more applicants
after the first stage of recruitment in hopes of increasing the number of people who will
be hired. After the final deliberations, however, there were less people hired that with
the previous batch of applicants.

a. Though more applicants got through the first round of deliberations the quality of
applicants was not as high as before.
b. Even though there were more applicants for deliberations the company did not want
hire more people
c. Even if more applicants got through to the final deliberations. The Human Resources
did not have the
d. The human resources head wanted to have more choices of applicants but did not
necessarily want to hire more.

6. Fitness trainers know for a fact that cooking your own meals ensures that they are
healthier and better for our body. Thus it is very surprising to learn that most
Which of the following statements below, if true, can resolve the paradox above?
a. Fitness trainers in the Philippines are not paid as much as in other countries.
Therefore they must spend as much time as possible working, which leaves them
little time to prepare their own meals.
b. Fitness trainers can counteract the effects of their eating habits with the regular
exercise they get from their job.
c. Fitness trainers in the Philippines mostly live in shared apartments or condominium
units which limits their access to facilities to cook their own meals
d. Philippine society promotes the culture of eating meals at restaurants and other
food establishments

7. The economic boom in a number of Asian authoritarian regimes is the strongest
argument that democracy as political system is unfavorable to economic development

Which of the following best explains the fallacy of the above passage?
a. The conclusion misses the point of the premise
b. The argument conjures the specter of the failure of democracy
c. The premise makes us of an incorrect analogy.
d. The argument identifies a false cause of underdevelpment

8. A study has shown that most people support democracy and accept it as the better form
of government both in principle and practice. The finding that minorities in some
regions of the world are tempted by authoritarianism alternatives must then be false.
Which of following best explains the fallacy of the above passage?

a. The passage is a circular agreement
b. The argument commits hasty generalizations
c. The passage is a fallacy of accent
d. The argument strays away from relative issues.
9. The interpretation of the laws is the exclusive dominion of the judicial branch of
government. Therefore the court has the sole right and duty to specify the correct
meaning and application of any law
a. The conclusion is probably true
b. The conclusion is probably false
c. The conclusion is necessarily true
d. The conclusion is necessarily false

10. All terrorist organizations are involved in criminal activities, but some terrorist groups
are driven by religious fanaticism. It follows that all groups are driven by religious
fanaticism are not involved in criminality.
a. The conclusion is probably true
b. The conclusion is probably false
c. The conclusion is necessarily true
d. The conclusion is necessarily false

11. Investing your money rather than keeping it in a bank is the best option because
investments have far greater profit than bank interest rates yield. Most banks have a
maximum interest of 1% per month while investments, like stocks give you the
opportunity to double or even triple your money in the same period of time. It could
take months, years and even decades for there to be any significant growth in a bank
account, while it takes only a short amount of time for investments to turn a sizeable
profit.
What is the flaw in the argument?
a. It does not consider that investments may fail due to various risk factors
b. It fails to recognize that bigger deposits in banks yield more profit
c. It fails to recognize that investments are more demanding to maintain and manage
d. The argument does not factor in that the state of the economy changes and
investments are affected.
12. Dave is a lawyer. His grandfather and father were also lawyers. Dave has a son. Dave’s
son will become a lawyer.
Study the pattern above and determine which of the following arguments parallel the
one above the most.
a. All vegetables have seeds. Mangos are fruits. Mangos have seeds.
b. All vegetables are green. Mangos are green. Mangos are vegetables
c. Jose and Emilio are twins. Jose and Emilio are brothers. They were born on the same
day.
d. Ateneans are intelligent. Allan is an atenean. Therefore allan is intelligent.
13. Presidents of organizations are well respected in their communities. Barangay officials
are also well respected in their communities. People with positions are well respected
Which of the arguments below is parallel to the one above?
a. Dogs and cats are house pets. People love house pets. People love dogs and cats
b. The game basketball uses a ball and is a sport. Volleyball also involves the use of a
ball and is also a sport. Baseball involves using a ball, therefore is also a sport.
c. Carpenters are hard working. Dale works hard. Dale is a carpenter
d. Sprite and Coca-cola are both brands of soda. Soda contains a lot of sugar. Sprite
and Coca-cola both contain a lot of sugar.
14. All fishermen have boats. Peter has a boat. Peter is a fisherman.
Which of the arguments below is parallel to the one above?
a. Mexicans are descendants of an ancient civilization. The Mayans are an ancient
civilization. Mexicans are descendants of the Mayans.
b. Dragons breathe fire. The Norwegian ridgeback is a dragon. The Norwegian
ridgeback breathes fire
c. Psychology majors enjoy playing poker. John, a psychology major, enjoys playing
poker. Raya does not enjoy playing poker and is therefore not a psychology major.
d. All professionals own numerous books. Businessman are not professionals hence,
businessmen do not own numerous books.
15. Alfonso: Guards in public places carry weapons to discourage any malefactors from
acting and also to be armed when the need arises
Chino: I don’t think so. Guards carry weapons in order to be ready and armed when the
time comes to act.

Alfonso and chino disagree on

a. Whether the guards carry weapons to dissuade possible offenders
b. The reason guards carry weapons
c. Whether guards carry weapons to be ready for when the need arises
d. Whether or not guards should be armed
16. Lia: The K-12 program will be beneficial to our country because the new system allows
those in senior high school to choose the subjects they want to take which helps them
prepare for either the course they want to take in college or the career they wish to
pursue after graduation from high school.
Isa: The shift in our educational system will indeed benefit the country but mainly
because it allows high school graduates to find jobs much easier without having to
acquire a college degree.

Lia and Isa are arguing
a. If the K-12 program will benefit the Philippines
b. Whether employment rates will rise because of the shift in the educational system
c. If students will benefit from the shift to the K-12 program
d. About how the K-12 program will be beneficial to the country
17. Ramon: the amount of traffic in Metro Manila is cause by lack of urban planning

Jason: Actually, traffic in metro manila is more an effect of poor enforcement of the
traffic laws

Ramon and Jason disagree about
a. The causes of traffic in metro manila
b. The sole cause of traffic in metro manila
c. Why traffic is terrible only in metro manila
d. The root cause of traffic congestion in metro manila
18. Only those laws will be considered legitimate that can gain the support of everyone in
open debate (Jurgen Habermas, Between Facts and Norms)
Translation:
a. All laws that can gain the support of all are legitimate
b. All laws that cannot gain the support of all are illegitimate
c. All legitimate laws can gain the support of everyone
d. All illegitimate laws cannot gain the support of everyone

19. In its simplest sense, freedom means the absence of constraints or restrictions. Few.
However, believe that freedom should be absolute, they recognize the distinction
between liberty and licence. (Andrew Heywood, Political theory)
Which of the Following is not implied by the above passage?
a. Some people do not believe in absolute freedom
b. Not all people believe in absolute freedom
c. No people believe in absolute freedom
d. All people believe in absolute freedom
20. Politics is necessary for unless human beings can solve problems through compromise
and the force of the better argument, they will resort to brutal force or violent action.
Translation:
a. If humans engage in politics, they will not resort to violence.
b. If humans resort to violence, they will not engage in politics
c. If humans do not engage in politics, they will resort to violence
d. If humans do not resort to violence, they will engage in politics

21. The party-list representatives shall constitute by selection or election from the labor,
peasant, urban poor, indigenous cultural communities, women, youth and such other
sectors as may be provided by law, except the religious sector (Phil Conti- Art VI, Sec
5.2)
Translation:
a. All religious sectors may not be party list representatives
b. Non-religious sectors may be party-list representatives
c. All of the above
22. When asked whether he supported the schools proposal to move the beginning of the
academic calendar from June to August, the PTA president said, “I support any proposal
that unqualifiedly improves the students level of global competitiveness

This statement is rightly charged as being ambiguous. What makes it so?

a. It takes “support” in a different grammatical context
b. It change the meaning of support
c. The response may mean two different things depending on which word or phrase is
emphasized.
d. It does not answer the question at all

23. Speaker A: Considering the importance of gender equality in international relations as
well as our own congress passage of many gender sensitive laws like the magna carta of
women, it is high time that ateneo consider accepting female students in all levels of
instruction. Including grade school.
Speaker B: Ateneo is not discriminatory, chauvinistic and bigoted, as you have
carelessly insinuated. This proposal is a ridiculous break in tradition that should be
headed off at the pass.

If you were speaker A, what would be the best way to respond to the flaws in Speaker
B’s argument?
a. It is a fallacy to say that exclusivity is acceptable today simply because it has been a
sensible practice in the past
b. You’re straying off the subject
c. Traditional wisdom is not practical wisdom
d. I did not descrive ateneo thus, let’s go back to the issue of whether it is opportune
time to start accepting female students
24. There are two categories of termite treatment- use of liquid termiticides and termite
baiting. An article published in this month’s home and hearth, a home and design
magazine, claims that termite baiting (which consists of installing palatable food
combined with a substance lethal to termites) is not effective .Home and hearth is
owned by AB holding corporation which also owns XY pest control, the foremost
corporation using liquid temiticides. It should be obvious therefore that termite baiting
is really the better option of termite treatment.

The reasoning in is most vulnerable to criticism on the grounds that

a. The argument treats evidence that there is vested interest or an apparent bias as
evidence that the magazines claims are false
b. The argument is guilty of a sweeping generalization and is an oversimplification
c. The argument fails to take into account the possibility that corporations using
termite baiting would have, in like manner, just as much insensitive to generate
adverse publicity for XY Pest Control had the positions been reversed
d. The argument fails to provide evidence that liquid termiticides are not better than
baiting

25. All playing cards have clubs. All clubs have officers. Therefore, all playing cards have
officers
The flawed pattern of reasoning in the argument above is most similar to that in which
one of the following?

a. All Jesuit are Christians. All Catholics are Christians. All Jesuits are therefore Catholics
b. All laws are acts of Congress. All laws are a good. So all acts of Congress are good
c. All penalties are sanctions. All sanctions are approvals. So all penalties are approvals
d. All checks are negotiable instruments. All promissory notes are negotiable
instruments, Therefore all checks are promissory notes.

26. If Meryl Streep was inspired by a movie she was nominated for, it is doubtful that any
ingénue would win the Oscar for Best Actress. But in this year’s ceremony, an ingénue
did win, so its doubtful that Meryl Streep was inspired by her nominated role.
In which of the following is the pattern of reasoning most parallel to that in the
argument above?
a. If Miss Philippines makes it through to the untelevised preliminary qualifying round
of the Miss Universe pageant, it is doubtful that any other country’s contestant will
win Miss Congeniality. In this year’s pageant, it’s doubtful that Miss Philippines
made it through to the untelevised preliminary qualifying round of the pageant since
Miss Japan won as Miss Congeniality
b. If the miss Supernatural pageant was not fixed, Miss Moldova who won Best in
gown, would have been unlikely to win the Miss Supernatural crown. Since Miss
Maldova (Best in Gown) was highly unlikely to win the Miss supernatural crown the
pageant was probably fixed
c. If Donald trump confirmed his participation as judge at the Miss America pageant, it
is doubtful that Miss Puerto Rico participated, since Donald Trump was present at
the said pageant
d. If David Letterman interviews a guest, It is unlikely that Jay Leno would invite that
person in the same month. But leno did not invite Matt Damon this month so it is
likely that letterman interviewed him this month.

27. All constitutional law professors give above average marks. All international law
professors give below average grades. All constitutional law professors in Ateneo,
including professor X are required to handle international law subjects too. Therefore,
Professor X gives average grades.

Which one of the following uses flawed reasoning that most closely resembles the
flawed reasoning used in the argument above?
a. All students of quota courses like BS Math, will get at least six job offers after
graduation. All students of non-quota courses, like AB Fine arts, will get at least two.
John is doing a double major in college (BS Math and AB fine arts), John will get at
least at least 8 job offers after graduation
b. All professors who consistently start class on time get high evaluation marks from
their students. But some professors who do not start class on time also get high
evaluation marks. Professor X is usually on time but occasionally comes to class late.
Therefore, Professor X gets somewhat high evaluation marks
c. All new hired engineers get a P50,000 signing bonus while all newly hired designers
get a P30,000 signing bonus. Jose is an engineer who was nealy hired for a design
position. Therefore Jose will get a P45,000 signing bonus.
d. Sphynx cats score a 1-star(minimal), the lowest on the amount of shedding scale.
Nebelung cats score four stars (copious amounts over the norm) Mary’s newborn
kittens are a mixed-breed- half sphinx, half nebelung. Mary’s kittens will shed
average quantities of fur
28. Under Philippine law, to be eligible for an appellate judicial position, an applicant must
be at least 40 years old. Further he or she must have been in the practice of law for at
least 15 years. Therefore, Margaret cannot be appointed solicitor general of the
Philippines since she is only 38 years old.
The arguments conclusion follows logically if which one of the following is presumed?
a. The requirement of 15 years in legal practice is not essential to be solicitor general
b. If Margaret was only 40 years old, she would have been appointed solicitor general
c. Any lawyer who is at least 40 years old and has been in legal practice for at least 15
years can be appointed to the judiciary.
d. The law requires that the solicitor general must have the qualifications an appellate
court judge
29. George, Randolph and Maria all graduated from shogwosh college, a prestigious private
university. George now owns a tech company which is valued over a billion dollars.
Randolph has started and sold over ten companies, giving him a net worth of 500 million
dollars. Maria Became the first female United Nations Secretary General

Juno desperately wanted to enroll in Shogwosh College. When asked why, he answered
that everyone who goes there becomes rich or successful.

What is wrong with juno’s assertion?
a. He fails to consider other Shogwosh graduates who did become rich or successful
b. He fails to consider non-Shogwosh graduates who did become rich or successful
c. He fails to consider non-Shogwosh graduates who did not become rich or successful
d. He fails to consider other shogwosh graduates who did not become rich or
successful
30. Clara claimed that her boyfriend Robert should focus more on his academics rather than
play video games all the time. Robert, a perennial C average student angrily replied,
“You just want me to study with you in the library, why do you hate me so much that
you don’t want me to do what makes me happy?
Robert’s Outburst is most vulnerable to which criticism?
a. There is nothing wrong with Roberts outburst as success is defined differently by
other people
b. Robert misunderstands Clara’s intention as veiled jealousy
c. Robert fails to consider that achieving academically is more important than doing
well in video games
d. Robert misrepresents Clara’s sentiment and misses her point entirely
31. All good things come to an end. All that come to an end come with a tinge of regret.
Therefore, nothing good comes with a tinge of regret.
Which of the following closely parallels this flawed pattern of reasoning?
a. All cats are good pets. All good pets can be bought from a breeder, therefore no cats
can be bought from a breeder
b. All cats are good pets. All dogs are good pets too. Hence. No cats are dogs
c. All cats either have a good personality or are cute. That girl in the coffee shop is
pretty cute. She’ll make a good pet
d. The economics of books written by Professor Malady all focus on one thing the law
on supply and demand. But economics is more than just mere supply and demand.
Hence, I won’t buy professor Malady’s book
32. An armchair philosopher once thought that if all good pizzas he liked were brickfire
pizzas, and that it took all brickfire pizzas around 30 to 40 minutes to make, then all
good pizzas he liked took around 30 to 40 minutes to make
Which of the following is most similar in its reasoning to the conclusion above?
a. All meals cooked by Chef Josie tasted good. Micheling restaurants typically have a
French chef. Hence, Chef Josie is French
b. All dishes served in the restaurant had mushroom as its secret ingredient. All
mushrooms used as secret ingredient were locally source. Hence all dishes served in
the restaurant had locally sourced ingredient
c. No one liked hanging out with cruz because he liked making fun of people. No one
liked hanging out with rosie as well because she was snooty. Hence, cruz and rosie
hung out with each other.
d. Some people like it boiling hot, some people like it pretty cool. Hence, no one likes it
warm
33. The defense lawyer argued. “ No typical murderer will have a family, some families will
not even have criminals. Therefore my client having a family is not amurderer.”
Disregarding the truth of the propositions which of the following most closely parallels
the flawed reasoning above?
a. No penguins are birds. Most birds, however, are not mammals. So it just proves that
a minority of mammals are not penguins
b. No library is built by public funds. No public funds will ever be spent on education.
Hence it just comes to show that all libraries are built for education
c. All fictional stories are figments of the imagination. Figments of the imagination are
the brainchild of bored writers. No fictional stories are the brainchild of bored
writers
d. All rhinos are animals. All elephants are animals. Therefore. All rhinos are elephants
34. A study showed that married people are generally happy people. Ronaldo is a pretty
happy, so he’ll probably get married someday.
Which of the following most closely parallels the flawed pattern reasoning used?
a. Supreme court decisions usually build on previous cases, as our legal system follows
the priniciple of statre decisis or adherence to legal precedents hence a case with
the similar fact and legal patterns as a previously decided one will be decided the
same way
b. Research has shown that ambidextrous people are both creative and critical
thinkers. Mario is ambidextrous people are both creative and critical thinkesrs.
Mario is ambidextrous but is not creative
c. Research has shown that creative people are left handed. Luisito is left handed so
he’s more likely creative
d. Research has shown that critical thinkers are right handed. Louis is not a critical
thinker. He’s probably left handed

35. Most supreme court cases involving VAT refunds have been dismissed because the
taxpayers failed to file their refund claims on time. As a way of concession, the supreme
court did however allow late claims filed between 2003 and 2010. Lopez Jaena Inc. filed
their claim on 2009. If they have the proper evidence, the supreme court will most likely
grant their refund.
Which of the following is most similar in its reasoning to the argument above?
a. Mr. Tazo never considered going to the US until his wife found a job there. His wife
never found a job, so he probable stayed in the Philippines.
b. Julius and reah have always gone to the movies on Sunday nights. However they skip
the movies and just go for dinner if the weather is bad. The weather on that
particular Sunday was horrendous so the probably just went out for dinner
c. Lorelai and Rory promised they’d never go to the coffee shop if luke the owner was
there. That morning they found out that luke was manning the counter. Lorelai and
Rory were probably at the coffee shop that morning
d. Miranda was known to skip meals on days which she didn’t work out. That Tuesday,
Miranda skipped a meal hence she probably didn’t work out that day

36. Mario was revenue officer assigned to collect taxes from small business owners. Mang
jun an owner of a small sari-sari store, accused Mario for soliciting bribes. He also
accused Mario for singling him our claiming that Mario never collected taxes from other
stores in the area. During the preliminary investigation to determine if a case should be
filed against Mario, the prosecutor noted that Mang Jun’s accusations were not
supported by any evidence except his testimony. The prosecutor then proceeded to
dismiss the complaint against Mario.
What rule best explains the decision of the prosecutor?
a. A person takes ordinary care of his business
b. Official duty has been regularly performed
c. Private transactions have been fair and regular
d. A person acting in a public office was regularly appointed or elected to it
37. Ernestina was accused of theft for stealing the iphone of her boss, rogermundo. The
iphone was allegedly stolen from rogermundo’s office on June 15, 2015. Rogermundo
was a cruel boss who never failed to make snide remarks about ernestinas weight and
frizzy hair. During trial, it was proven that Ernestina knew that rogermundo’s iphone had
lewd pictures that could damage his reputation. However the prosecution did not
present any evidence that Ernestina was in the office on June 15. 2015. Judge Peleo
azquitted Ernestina of the charge.
Which of the following presumptions best explains Judge Peleo’s decision?
a. One who alleges without evidence does not discharge burden of proof
b. Evidence willfully suppressed would be adverse if produced
c. A person found in possession of a thing taken in the doing of a recent wrongful act is
the take and the doer of the whole act
d. A judge acting in the Philippines was acting in the lawful exercise of jurisdiction
38. A case pending in the court of judge sumaghari. It revolved on the issue of who owned a
car. On one hand, julieta testified that it was hers because her business associate
Mercedes brought the car to her. On the other hand, Mercedes claimed it was hers,
testifying that she mere loaned it Julieta. Julieta and Mercedes had no other evidence
except for their respective testimonies. Judege Sumaghari ruled in favor of Julieta.
Which of the following rules explains the decision of judge sumaghari?
a. A person intends the ordinary consequences of his voluntary act
b. A thing delivered by one to another belongs to the latter
c. An obligation delivered to another discharges the obligation
d. A person in possession of an order on himself for the payment of the money or the
delivery of anything has paid the money or delivered the thing accordingly

39. A truck driver employed by Pecan Mate Inc. accidentally ran over a lady who was
crossing at a pedestrian crosswalk. Seeing that the truck driver was poor, the old lady
instead sued the president of Pecan Mate, Inc for damages. The president claimed he
had nothing to do with the accident. In fact he was in an office meeting at the time of
the accident. Still the judge rendered a decision ordering the president to pay the lady
for the injuries caused by the accident.
Why did the judge order the president to pay for the lady’s injuries?
a. He followed a rule of law that given circumstances imputes the liability of the
employee on the employer
b. He followed a rule of law that given certain circumstance imputes the liability of the
employer on the employee
c. The judge is given discretion because the lady was in the night as she properly
crossed in the cross-walk
d. The judge is allowed to punish employers because truck drivers are known to be
reckless drivers
40. In soccer a penalty kick is a situation wherein a player shoots a stationary ball against a
goalkeeper from a designated mark. The player typically shoots to the side of the
goalkeeper. Studies have shown that a goal keeper will dive to his side 98% of the time
therefore diminishing the chance of a player to score. This means that a goalkeeper will
stay center in just 2% of all attempts, thus giving players a higher possibility of scoring if
they just kick it straight down the middle. However, only 17% of all kicks are aimed
down the middle
Which of the following explains this anomaly?
a. Kicking the ball to the side has a higher probability of scoring
b. The goalkeeper knows that the player will kick it to the side
c. If the goalkeeper does not save the ball, kicking down the side will be foolish
d. If the goalkeeper does save the ball, kicking the ball down the middle will be seen as
foolish
41. Roger: Death penalty is the way to go. It will deter crime. Believe me, imagine you have
someone planning murder. The thought of the lethal injection alone will make him think
twice of his plan. I promise you that.
Luther: Crime will happen, whether you death penalty or not. Death Penalty will not
stop crime. It’ll just cut off any potential for rehabilitation of convicts. You’re not even
sure if it’s a proper deterrent. You don’t even have any empirical data to back up your
claim. Criminal don’t think of getting caught. If ever they do, that though isn’t given
much weight compared to the profits of their criminal endeavors.
Roger: So you’d rather have a serial killer live in our horrendously guarded prisons?
What if he escapes?
Luther: Then he does. But that not the point I’m trying to make
Ultimately, Roger and Luther disagree on
a. The psychology of criminals
b. The potential of rehabilitation of convicts
c. Whether death penalty is morally permissible
d. Whether the death penalty should be implemented
42. Eavesdropping on the conversation of a couple in the next table, you hear the following:
Guy: I told you, I didn’t cheat on you. We weren’t together at the time I asked Potts out
on a date. And ok, fine, we did kiss, but that was it.
Girl: How dare you? What do you mean we weren’t together?
Guy: Last night in the theater, you told me you wanted space. That you couldn’t deal
with me. That you couldn’t juggle being in a relationship and your work. What else could
that mean?
Girl: You’re such a pig. Such a typical guy. I can’t believe you went out with her. And you
kissed her? That’s it. We’re done. We’re over.
You want to step in an d mediate, and the first thing you do if find out what they
disagree on. In the context of relationships, what do they fundamentally disagree on?
a. The definition of cheating
b. The societal construct that males should have girls on the side
c. The definition of broken up
d. The societal expectation that females should let boys be boys
43. A city ordinance banned households from owning pets. The city passed the ordinance in
order to prevent the spread of diseases by animal-carriers and to prevent unlicensed
breeders from establishing puppy mills.
A concerned pet owner sought to have the ordinance repealed claiming that the
implementation of the ordinance would force owners to abandon their current pets. If
the city really wanted to curb diseases and prevent puppy mills, other ways existed
aside from a total ban on pets
At its core what is the point of contention?
a. The propriety of the city hall hearing
b. The wisdom of the ordinance
c. The implementation of the ordinance
d. The right of the city to pass the ordinance
44. Arnold and bea were In a heated argument. Arnold argues “I’m telling you, life on mars
is possible. I read it in a scientific journal and if life in mars is possible, what about other
planets?
Bea replies, “ look, just because were in the same solar system as other planets. Doesn’t
mean there’s going to be life outside the earth
Arnold and bea disagree on whether
a. Life exists in mars
b. Life exists in earth and other planets but not it mars
c. Life exists in mars and on earth but not other planets
d. Life exists in other planets
45. Commuters in metro manila have numerous choices when it comes to public
transportation. The cheapest but least comfortable would be a jeepney ride while the
priciest but most comfortable one would be a taxi cab. FX shuttles cost only a little more
than what jeepneys would charge but are more comfortable. Logically we would assume
that more commuters would choose to ride FX shuttles because they are relatively
cheap and are more comfortable than jeepneys. Thus, it is surprising that most
commuters prefer to ride jeepneys.

e. Even though taxis and FX shuttles are more comfortable for commuters, they cost
more
f. It is easier to catch a jeepney ride because there are more of them compared to FX
shuttles
g. Paying the extra fee for FX shuttles is not worth it for commuters because jeepneys
can be comfortable when not full
h. Paying the extra fee for FX shuttles is not worth it for commuters because FX
shuttles are not as comfortable as taxes

PART 3 Reading Comprehension
(Paragraph A –I) On September 13, The New York Times published an article by Milton
Friedman castigating any managers of businesses who were “spending someone else’s money
for a general social interest” – in other words, requiring customers to pay more, employees to
be paid less, or owners to accept smaller profits so that the firm could exhibit some amount of
social responsibility beyond the requirements of the law. Already in his 1962 book Capitalism
and Freedom Freidman had declared that, “there is one and only one social responsibility of
business – to use its resources to engage in activities designed to increase its profits so long as
it stays within the rules of the game, which is to say, engages in open and free competition
without deception or fraud.” Choices about whether and how to use money to remedy social
problems should be left to individuals, he argued, who would be in better position to provide it
if they were not being in effect taxed by corporate managers who thought they had better
ideas for how to spend it.
(Paragraph A-II) The article shocked the sensibilities of many who worried about rising
corporate power in the world, but for many executives struggling to chart courses through the
chaos of newly globalized and deregulated markets, it offered an irresistible clarity: one need
only focus on owner’s interests. In 1976, Professors Meckling and Jenses put a finer point on
things with their economic rationale for maximizing shareholder value. Ronald Reagan and
Margaret Thatcher gave the idea political cover. Very quickly, shareholder value became the
gospel of capitalism.
(Paragraph A-III) The tight focus on generating returns drove many gains. It hurried along the
formation of global supply chains with ever greater efficiency and economies of scale. As more
firms became multinationals, fewer showed loyalty to particular communities or any hesitation
to migrate their operations to wherever costs were lowest. Employees were viewed more as
fungible inputs to operation, and customers viewed more as targets within more or less
lucrative segments.
(Paragprah A-IV) Yet it also began to evidence that, even if the goal was to serve the interests of
a single stockholder, the pursuit could not be so single-minded. Incentives to maximize
shareholder value pushed managers toward decisions that paid off in the short term but were
devastating to the long-term viability of firms. As I’ve explored elsewhere, pervasive short-
termism hampered the United States’ capacity to compete in international markets;
encouraged a massive trend of offshoring that destroyed major segments of the US economy;
generated “bad profits” that undermined customer loyalty, “financialized” the economy making
it vulnerable to increasingly severe financial crashes; undermined economic recoveries; and
drastically reduced rates of return on assets and on invested capital of US firms.
(Paragraph A-V) These problems hardly arose overnight; they began early. However, it was after
the advent of the Internet that the challenges to the shareholder value maximization became
forceful. This is because the Internet …
• Shifted power in the marketplace from seller to buyer. Customers, who had, access to
reliable information about the available choices and a capacity to interact with other
customers, were suddenly in charge.
• Raised customers’ expectations. As “better, cheaper, faster, smaller, more convenient,
and more personalized” became the new norm, the ability to innovate with committed
employees and agile processes became critical.
• Shredded vertical supply chains. Customers could buy a wider array of stuff online
cheaper, and often quicker than in a physical store. First books and music, then almost
anything.
• Spawned vast new horizontal value chains, in which millions of people began creating
their own virtual meeting places and marketplaces with their own lateral economies of
scale. First computer code, then ideas, then music, photos, and videos-and finally,
physical things.
• Enabled firms to create huge ecosystem of suppliers and customers that could achieve
enormous scale without the sclerosis of big hierarchical bureaucracy.

(Paragraph A-VI) As a result a new era is emerging. Harking back to Peter Drucker’s insistence in
1973 that “there is only one valid definition of business purpose to create a customer, “Roger
Martin has declared that we are finally entering “the age of customer capitalism.” If firms serve
customers well, Martin asserts, benefits for shareholders and the community follow. Customers
as stakeholders because the new center of the capitalist universe and its new gospel.
(Paragraph A-VII) The shift in goal entails a transformation in management practices from those
of hierarchical bureaucracy, including a shift from controlling individuals to enabling teams,
networks, and ecosystems; a shift in the way work is coordinated from rules, plans and reports
to agile processes and dynamic linking, a shift from the values of efficiency, and predictability to
those of continuous improvement and transparency, and a shift from one-way, top-down
communications to interactive conversations. These shifts are not just a grab-bag of
unconnected management gadgets. They continue a coherent constellation of leadership and
management practices described by more than a score of books.
(Paragraph A-VIII) The confusing reality of the moment, however, is that there are least) two
different systems, operating simultaneously, at different speeds and on different trajectories.
(Paragraph A-IX) One- the Traditional Economy – is the economy that we inherited from the
20th Century. It’s a world of command and control, focused on making money through
economies of scale and comprising big hierarchical bureaucracies that push out products and
services and get customers to buy them with sales of campaigns and advertising. This is still the
larger of the two economies. It’s been in a steady decline for a number of decades. It doesn’t
generate net new jobs. It’s not very agile. It’s becoming steadily more efficient. But it’s not
good at innovation. It’s less and less able to capture the gains of its efficiencies. It’s still a big
part of what’s going on in the world. But it doesn’t have much of a future.
(Paragraph A-X) The other economy – the Creative Economy – is an economy of continuous
innovation and transformation. This is the economy of firms and entrepreneurs that are
delivering to customers what they are coming to expect, namely, “better, faster, cheaper,
smaller, higher, more convenient, and more personalized.” The Creative Economy is still
relatively small but it is growing rapidly and, when implemented well, is highly profitable. It is
the economy of the future. It doesn’t have to be invented it’s already under way. Its practices
represent a paradigm shift in the strict sense laid down by Thomas Kuhn: it’s a different way of
thinking, speaking, and acting in the world.
(Paragraph A-XI) The shift from the Traditional Economy to the Creative Economy isn’t just a
technical wrangle about economies or management theory. It’s a shift in what society demands
of the managers of its most powerful institutions; from narrow definitions of their owners and
decisions that serve their short-term interests, to broad acceptance of the responsibility that
comes with power and leadership concerned with what is best for society. In the shift, we are
learning than an argument about the proper activities of managers can be logical, can be
strongly argued, can influence decades of practice in the world’s largest corporations – and can
still be plain, flat, dead wrong.
1. With the advent of the Internet, which of the following receded into the background?
A. Strengthening of shareholder power

B. Democratizing of the marketplace
C. Empowerment of customers
D. Creating of better products and more efficient processes

2. The phrase “massive trend of offshoring that destroyed major segments of the US economy”
(Paragraph A-IV, Lines 34-35) implies that the main purpose of OFFSHORING is to:
A. Free workers from tedious, unchallenging jobs by bringing these to less-developed

countries
B. Reduce operational costs by relocating processes to another country
C. Provide employment to workers in another country
D. Enable companies to pay reduced taxes in their home country

3. If “employees were viewed more as FUNGIBLE inputs to operations” (Paragraph A-III, Line
26), then they were ________________________.
A. Replaceable
B. Dehumanized
C. Costly
D. Serviceable

4. According to the article, what is the challenge facing today’s business leader/manager?
A. How to fully harness the business potential of the internet

B. How to balance maximizing profit with fulfilling corporate social responsibility
C. How to skillfully navigate shift from traditional to creative economy
D. How to leave the traditional economy as painlessly as possible

5. Which combination of traits would pose the greatest liability in a manager/entrepreneur

working in the creative economy?
A. Is profit-focused and has no sense of social responsibility

B. Is controlling and not technology-savvy
C. Is complacent and has no networking skills
D. Is rigid and slow to innovate

6. In the transition from the traditional to the creative economy, the internet may be
considered a __________ of change.
A. Cause
B. Catalyst
C. Method
D. Route

7. The author puts his points across by _________________.
A. Telling the history of capitalism

B. Tracing the evolution of a paradigm shift
C. Describing the processes and behavior
D. Stating a personal stand

8. What is discussed in Paragraph A-IV?
A. Incentives to maximize shareholder value

B. The United States’ capacity to compete in international markets
C. Disadvantages of offshoring
D. Consequences of single-minded pursuit of maximizing shareholder value

9. Milton Friedman disapproved of ___________________/
A. Individuals spending hard-earned money to donate to charity

B. Businesses using profits to donate to social causes
C. Managers urging employees to help in community undertakings
D. Businesses that do not strive to maximize profits

(Par. B-I) Whether you’re the owner of the Dallas Cowboys or captain of the playground dodge
ball team, the goal in picking players is the same: Get the top talent. Hearts have been broken,
allegiances tested, and budgets busted as teams contend for the best athletes. The motivation
for recruiting peak performers is obvious – exceptional players are the key to team success –
and this belief is shared not only by coaches and sports fans, but also by corporations,
investors, and even whole industries. Everyone wants a team of stars.

(Par. B-II) While there is no denying exceptional players like Emmitt Smith can put points on the
board and enhance team success, new research by Roderick Swaab and colleagues suggests
there is a limit to the benefit top talents bring to a team. Swaab and colleagues compared the
amount of individual talent on teams with the teams’ success, and they find striking examples
of more talent hurting the team.
(Par. B-III) The researches look at three sports: basketball, soccer, and baseball. In each sport,
they calculated both the percentage of top talent on each team and the teams’ success over
several years. For example, they identified top NBA talent using each player’s Estimated Wins
Added (EWA), a statistic commonly employed to capture a player’s overall contribution to his
team, along with selection for the All-star tournament. Once the researches determined who
the elite players were, they calculated top-talent percentage at the team level by dividing the
number of star players on the team by the total number of players on that team. Finally, team
performance was measured by the team’s win-loss record over 10 years.
(Par. B-IV) For both basketball and soccer, they found that top talent did in fact predict team
success, but only up to a point. Furthermore, there was not simply a point of diminishing
returns with respect to top talent; there was in fact a cost. Basketball and soccer teams with
the greatest proportion of elite athletes performed worse than those with more moderate
proportions of top level players.
(Par, B-V) Why is too much talent a bad thing? Think teamwork. In many endeavors success
requires collaborative, cooperative work towards a goal that is beyond the capability of any one
individual…. When a team roster is flooded with individual talent, pursuit of personal star status
may prevent the attainment of team goals. The basketball player chasing a point record, for
example, may cost the team by taking risky shots instead
of passing to a teammate who is open and ready to score.
(Par. B-VI) Two related findings by Swaab and colleagues indicate that the there is in fact trade-
off between top talent and teamwork. First, Swabb and colleagues found that the percentage
of top talent on a team affects intra-team coordination. For the basketball study, teams with
the highest levels of top performers had fewer assists and defensive rebounds, and lowest field-
goal percentages. These failures in strategic, collaborative play undermined the team’s
effectiveness. The second revealing finding is that extreme levels of top talent did not have the
same negative effect in basketball, which experts have argued involves much less
interdependent play. In the basketball study, increasing numbers of stars on a team never
hindered overall performance. Together these findings suggest that high levels of top talent will
be harmful in arenas that require coordinated, strategic efforts as the quest for the spotlight
may trump the teamwork needed to get the job done.
(Par. B- VII) The lessons here extend beyond the ball field to any group or endeavor that must
balance competitive and collaborative efforts, including corporate teams, financial research
groups, and brainstorming exercises. Indeed, the impact of too many much talent is even
evident in other animals. When hen colonies have too many dominant high-producing chickens,
conflict and hen mortality rise while egg production drops. So before breaking the bank to
recruit superstars, team owners and industry experts might want to consider whether the goal
they are trying to achieve relies on individual talent alone, or a cooperative synergy from the
team. If the latter, it would be wise to rein in the talent and focus on teamwork.
10. Based on the results of the study, which of the following is TRUE?
A. Top talents have more opportunity to shine in baseball than in basketball or soccer
B. Top talents in baseball do not hinder overall performances because they show more
teamwork
C. Baseball requires less coordinated, strategic play than basketball or soccer
D. Basketball and soccer teams with the highest percentage of top talent were
outperformed by teams with the lowest percentage of top talent.

11. What is the commonly-held belief that Swaab and his colleagues wanted to investigate?
A. Everyone wants a team of stars

B. Teamwork is the key to team success
C. Exceptional players are the key to team success
D. Exceptional players crave recognition more than less-talented players

12. Which of the following sentences form the article BEST captures its overall message.
A. Why is too much a talent a bad thing?

B. The lessons here extend beyond the ball field to any group or endeavor that must
balance competitive and collaborative efforts
C. High levels of top talent will be harmful in arenas that require coordinated, strategic
efforts
D. Decision makers might want to consider if their goal relies on individual talent alone, or
a cooperative synergy from the team

13. Learning from the results of the study, a human resource professional tasked with putting
together a team may recruit _________________.
A. Individuals who are not ego-driven

B. Individuals whose talents and priorities contribute to group synergy
C. Individuals who are not highly competitive
D. Individuals who value team goals more than personal ambition

14. Based on the article, hiring on the basis of talent or skill primarily may be a good idea when
one is looking for a
A. Restaurant staff
B. Restaurant waitstaff
C. Pre-school teacher
D. Newspaper columnist

15. What was most likely the aim of Swaab and his colleagues for using the METHODOLOGY
they chose to answer their research question?
A. Clarity of findings to be derived from the data

B. Data of objectivity and relevance
C. Ease of processing the data
D. Similarity of data with other non-sports endeavors

16. Which of the following questions is NOT a logic offshoot of the results of the study cited in
the article?
A. Is the financial investment on top talent worth it?

B. Is it time to put an end to recruiting top talent?
C. What factors prevent a top talent-studded team from performing as a team?
D. What coaching style works best with a team of top talent?

17. In the context of the study, what is meant by the term DIMINISHING RETURNS (Paragraph
B-IV, line 26)?
A. With every addition of top talent, there is less teamwork.

B. With every addition of top talent, there is a progressively less added benefit to overall
team success.
C. With every addition of top talent, there is a corresponding deterioration in team
performance.
D. With every addition of top talent, there is less recognition of the contributions of less-
talented players.

18. A basketball coach learning from the study findings will probably do all of the following
EXCEPT _________________
A. Decide to utilize the team’s star player less

B. Study how to field the right combination of star and regular players
C. Motivate star players to focus more on team goals than personal one
D. Give input to team owners when recruitment time comes

(Par. D-I) The technology writer Kevin Kelly…. argues that the age of artificial intelligence is
finally at hand.
(Par. D-II) He writes that the smart machines of the future won’t be humanlike geniuses like
HAL 9000 in the movie “2001: A Space Odyssey.” They will be more modest machines that will
drive your car, translate foreign languages, organize your photos, recommend entertainment
options and maybe diagnose your illness. “Everything that we formerly electrified we will now
cognitize.” Kelly writes. Even more than today, we’ll lead our lives enmeshed with machines
that do some of our thinking tasks for us.
(Par. D-III) This artificial intelligence breakthrough, he argues is being driven by cheap parallel
computation technologies, big data collection and better algorithms. The upshot is clear, “The
business plans of the next 10,000 start-ups are easy to forecast. Take X and add A.I.”
(Par. D-IV) Two big implications flow from this. The first is sociological. If knowledge is power
we’re about to see an even greater concentration of power.

(Par. D-V) The Internet is already heralding a new era of centralization. As Astra Taylor points
out in her book, “The People’s Platform,” in 2001, the top 10 websites accounted for 31 percent
of all U.S. page views, but by 2010, they accounted for 75 percent of them. Gigantic companies
like Google swallow up the smaller ones. The Internet has created a long tail, but almost all the
revenue and power is among the small elite at the head.
(Par. D-VI) Advances in artificial intelligence will accelerate this centralizing trend. That’s
because A.I. companies will be able to reap the rewards of network effects. The bigger their
network and the more data they collect, the more effective and attractive they become.
(Par. D-VII) As Kelly puts, “Once a company enters this virtuous cycle, it tends to grow so big, so
fast, that it overwhelms any upstart competitors. As a result our A.I. future is likely to be ruled
by an oligarchy of two or three large, general-purpose cloud-based commercial intelligences.”
(Par. D-VIII) To put it more menacingly, engineers at a few gigantic companies will have vast-
though-hidden power to shape how data are collected and framed, to harvest huge amounts of
information, to build the frameworks through which the rest of us make decisions and to steer
our choices. If you think this power will be used for entirely benign ends, then you have not
read enough history.
(Par. D-IX) The second implication is philosophical. A.I. will redefine what it means to be human.
Our identity as humans is shaped by what machines and other animals can’t do. For the last few
centuries, reason was seen as the ultimate human faculty. But now machines are better at
many of the tasks we associate with thinking – like playing chess, winning at Jeopardy, and
doing math.
(Par. D-X) On the other hand, machines cannot beat us at things we do without conscious
thinking: developing tastes and affection, mimicking each other and building emotional
attachments, experiencing imaginative breakthroughs, forming moral sentiments.

(Par. D-XI) In the age of smart machines, we’re not human because we have big brains. We’re
humans because we have social skills, emotional capacities and moral intuitions. I could paint
two divergent A.I. futures, one deeply humanistic, and one soullessly utilitarian.
(Par. D-XII) In the humanistic one, machines liberate us from mental drudgery so we can focus
on higher and happier things. In this future, differences in innate I.Q. are less important.
Everybody has Google on their phones so having a great memory or the ability to calculate with
big machines doesn’t help as much.
(Par. D-XIII) In this future, there is increasing emphasis on personal and moral faculties being
likeable, industrious, trustworthy and affectionate. People are evaluated more on these traits,
which supplement machine thinking, and not the rote ones that duplicate it.
(Par. D-XIV) In the cold, utilitarian future on the other hand, people become less idiosyncratic. If
the choice architecture behind many decisions is based on big data from vast crowds,
everybody follows the prompts and chooses to be like each other. The machine prompts us to
consume what is popular, the things that are easy and mentally undemanding.
19. To COGNITIZE a machine (Paragraph D-II, Line 7-8: “Everything that we formerly electrified
we will now cognitize”) means making it
A. Liberate humans from mental drudgery

B. Collect and retain vast amounts of information
C. Follow the rules of logic in order to accomplish tasks
D. Centralize information in the hands of a powerful few

20. The term IDIOSYNCRATIC in the sentence (Paragraph D-XIV, Lines 68-69): “In the cold,
utilitarian future, on the other hand, people become less
idiosyncratic.” means ____________________
A. Intelligent
B. Distinctive
C. Freewheeling
D. Demanding

21. According to the article, which of the following is giving artificial intelligence the boost it
needs to make it part of our lives in the near future?
A. Cheap parallel computer technologies, big data collection and better algorithms
B. Greater concentration of power wielded by a few gigantic Internet companies
C. A shift in the understanding of what it means to be human
D. The need to free human from time-consuming but unchallenging tasks

22. What is the message conveyed by Paragraph D-VIII?
A. The concentration of knowledge power in the hands of a few could lead to abuse
B. Past abuses of the most powerful must not be condoned
C. It is dangerous to defer to the tech elite to make important decisions
D. Power tends to corrupt and absolute power corrupts absolutely. (Lord Acton)

23. According to the author, in the best possible vision of the future, humans would be living in
a world which ___________________
A. Intelligence will no longer matter

B. Machines will do most of the thinking for humans
C. Humans will do more of the things only humans can do
D. Humans will have more time for leisure activities

24. The ideas discussed by the author in Paragraphs XII, XIII, and XIV may be best described as
__________________
A. Visionary
B. Fantastical
C. Factual
D. Exploratory

25. Which TWO paragraphs best captures the value the author assigns to freedom of choice?
A. Paragraphs VII and VIII

B. Paragraphs VIII and XIV
C. Paragraphs VIII and IX
D. Paragraphs XIII and XIV

26. Based on the redefinition of being human that the author describes, which of the following
may become the LEAST uniquely human characteristic in the future?
A. Feeling animosity towards a work colleague
B. Following an argument to its logical conclusion
C. Sensing danger in an unfamiliar situation
D. Having a flash of insight in the middle of a sales meeting

27. Based on the redefinition of being human that the author describes, what could be
reasonably predicted about future job prospects for our humans?
A. There will be fewer jobs overall

B. There will be fewer jobs that require high IQ
C. There will be fewer jobs requiring interaction between man and machine
D. There will be fewer jobs involving tasks that a smart machine can do

28. What is the assumption underlying the author’s concern (Paragraphs IV-VIII) about the
CENTRALIZED TREND accompanying the growth of the Internet and artificial intelligence?
A. Man is essentially good and, if given power and resources, would use these for noble
ends.
B. In the pursuit of market dominance, most businesses generally abide by consumer and
trade laws
C. Personal information provided on the Internet should not be used by companies
without the individual’s consent
D. Consumers should be able to freely choose from a wide array of product offerings from
various providers.

29. Which of the following is the most accurate reading of the ideas presented in the article?
A. A humanistic future may be the cause of a redefinition of being human, and a utilitarian
future the cause of centralization of knowledge power.
B. A humanistic future may be the cause of a redefinition of being human, and a utilitarian
future the effect of centralization of knowledge power
C. A humanistic future may be the product of a human, and a utilitarian future the effect of
centralization of knowledge power
D. A humanistic future may be the product of a redefinition of being human, and a
utilitarian future the cause of centralization of knowledge power.

30. To be ENMESHED (Paragraph D-II, Line 8-9: “Even more than today, we’ll lead our lives
enmeshed with machines that do some of our thinking tasks for us.“) means to _____________
A. Be replaced by
B. Be fascinated by
C. Be controlled by
D. Interact closely with

(Par. E-I) Globalization has made the planet more equal. As communication gets cheaper and
transport gets faster developing countries have closed the gap with their rich-world
counterparts. But within developing economies, the story is less rosy; inequality has worsened.
The Gini index is one measure of inequality, based on a score between zero and one. A Gini
index of one means a country’s entire income goes to one person; a score of zero means the
spoils are equally divided. Sub-Saharan Africa saw its Gini index rise by 9% between 1993 and
2008. China’s score soared by 34% over twenty years. Only in a few places has it fallen. Does
globalization have anything to do with it?
(Par. E-II) Usually, economists say no. Basic theory predicts that inequality falls when
developing countries enter global markets. The theory of comparative advantage is found in
every introductory textbook. It says that poor countries produce goods requiring large amounts
of unskilled labour. Rich countries focus on things requiring skilled workers. Thailand is a big
rice exporter, for example, while America is the world’s largest exporter of financial services. As
global trade increases, the theory says unskilled workers in poor countries are high in demand;
skilled workers in those same countries are less coveted. With more employers clamoring for
their services unskilled workers in developing countries get wage boosts, whereas their skilled
counterparts don’t. The result is that inequality falls.
(Par. E-III) But the high inequality seen today in poor countries is prompting new theories. One
emphasizes outsourcing – when rich countries shift parts of the production process to poor
countries. Contrary to popular belief, multinationals in poor countries often employ skilled
workers and pay high wages. One study showed that workers in foreign-owned and
subcontracting clothing and footwear factories in Vietnam rank in the top 20% of the country’s
population by household expenditure. A report from the OECD found that average wages paid
by foreign multinationals are 40% higher than wages paid by local firms. What is more, those
skilled workers often get to work with managers from rich countries, or might have to meet the
deadlines of an efficient rich-world company. That may boost their productivity. Higher
productivity means they can demand even higher wages. By contrast, unskilled workers, or
poor ones in rural areas, tend not to have such opportunities. Their productivity does not rise.
For these reasons globalization can boost the wages of skilled workers, while crimping those of
the unskilled. The result is that inequality rises.

(Par. E-IV) Other economic theories try to explain why inequality in developing countries has
reached such heights. A Nobel laureate, Simon Kuznets, argued that growing inequality was
inevitable in the early stages of development. He reckoned that those who had a little bit of
money to begin with could see big gains from investment, and could benefit from growth,
whereas those with nothing would stay rooted in poverty. Only with economic development
and demands from redistribution would inequality fall. Indeed, recent evidence suggests that
the growth in developing-country inequality may now have slowed, which will prompt new
questions for economists. But as things stand, globalization may struggle to promote equality
within the world’s poorest countries.
31. Using Thailand and America as examples in Paragraph E-II, the theory of comparative
advantage predicts that as global trade increases,
A. Thailand’s skilled workers would not be able to compete with America’s skilled workers
B. There would be a narrowing of the gap in incomes of skilled and unskilled workers in
Thailand
C. Unskilled workers in both America and Thailand would be in high demand
D. The Gini index of Thailand would fall, while the Gini index of America would rise

32. If Country A has a Gini index of .60 and Country B has a Gini index of .30, income
then__________________.
A. Country A’s income is shared by more of its citizens than Country B

B. Country B has more inequality than Country A.
C. Country A’s income goes to fewer of its citizens than Country B
D. Country B has more wealthy people than Country A.

33. The data that China’s Gini score soared by 34% over twenty years (Paragraph E-I, Lines 7-8 is
___________________.
A. Inconsistent with the theory that inequality falls when developing countries enter global
markets
B. Consistent with the theory that unskilled workers in poor countries are high in demand
C. Inconsistent with the view that growing inequality was inevitable in the early stages of
development
D. Consistent with the observation that developing countries have closed the gap with
their rich-world counterparts

34. Theoretically, which of the following would have the LOWEST Gini index?
A. Countries transitioning from agriculture to technology

B. Countries in which the rich save their wealth, rather than invest in labor-intensive
enterprises
C. Countries where the same tax rates apply to rich and poor alike
D. Communist and socialist countries

35. How does the author discuss the problem of inequality?
A. By presenting three theories showing the positive and negative impact of globalization
on poor countries
B. By explaining the Gini index as a measure of inequality
C. By comparing the economic fates of skilled and unskilled workers
D. By discussing the inevitable and often unpredictable consequences of globalization

36. What is the subject of the article?
A. Skilled workers
B. Inequality
C. Wealth distribution
D. Globalization

37. On the subject of consequences of globalization, Paragraphs E-II and E-III lay out the
difference between ___________________.
A. Products and services

B. Two differing theories on inequality
C. Rich and poor countries
D. Rural and urban workers

38. Based on the article which of the following statements is FALSE?
A. Theories on economic development and inequality change according to realities on the

ground.
B. As developing countries enter global markets, their income may catch up with that of
rich countries, but it is not equally distributed
C. As developing countries enter global markets, skilled workers benefit more than
unskilled ones because demand and compensation for them are higher
D. Local industries pay unskilled workers higher wages than multinationals

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PART

1 CRITICAL THINKING TEST

1. According to Augustine, a medieval Christian scholar, the state is necessary because

1. Compensation income is generally taxable in the year of receipt. If payment is in cash,

A. Strengthening of shareholder power

A. Free workers from tedious, unchallenging jobs by bringing these to less-developed

A. How to fully harness the business potential of the internet

5. Which combination of traits would pose the greatest liability in a manager/entrepreneur

A. Is profit-focused and has no sense of social responsibility

7. The author puts his points across by _________________.

A. Telling the history of capitalism

8. What is discussed in Paragraph A-IV?

A. Incentives to maximize shareholder value

9. Milton Friedman disapproved of ___________________/

A. Individuals spending hard-earned money to donate to charity

of passing to a teammate who is open and ready to score.

A. Everyone wants a team of stars

A. Why is too much a talent a bad thing?

A. Individuals who are not ego-driven

A. Clarity of findings to be derived from the data

A. Is the financial investment on top talent worth it?

A. With every addition of top talent, there is less teamwork.

A. Decide to utilize the team’s star player less

A. Liberate humans from mental drudgery

idiosyncratic.” means ____________________

22. What is the message conveyed by Paragraph D-VIII?

A. Intelligence will no longer matter

A. Paragraphs VII and VIII

A. There will be fewer jobs overall

A. Country A’s income is shared by more of its citizens than Country B

A. Countries transitioning from agriculture to technology

35. How does the author discuss the problem of inequality?

36. What is the subject of the article?

A. Products and services

38. Based on the article which of the following statements is FALSE?

A. Theories on economic development and inequality change according to realities on the

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