Passage Reading and English Comprehension
(a) refute the theory that the free market plays a useful role in the development of industrialized societies
(b) suggest methods by which economists and members of the government of the United States can recognize and combat price-fixing by large firms
(c) argue that price-fixing, in one form or another, is an inevitable part of and benefit to the economy of any industrialized society
(d) explain the various ways in which industrialized societies can fix prices in order to stabilize the free market
290. The passage provides information that would answer which of the following questions about price-fixing?
I. What are some of the ways in which prices can be fixed?
II. For what products is price-fixing likely to be more profitable that the operation of the free market?
III. Is price-fixing more common in socialist industrialized societies or in non-socialist industrialized societies?
(a) I only
(b) III only
(c) I and II only
(d) II and III only
291. The author’s attitude toward “Most economists in the United States” can best be described as
(a) spiteful and envious
(b) scornful and denunciatory
(c) critical and condescending
(d) ambivalent but deferential
292. It can be inferred from the author’s argument that a price fixed by the seller “seems pernicious” because
(a) people do not have confidence in large firms
(b) people do not expect the government to regulate prices
(c) most economists believe that consumers as a group should determine prices
(d) most economists associate fixed prices with communist and socialist economies
293. The suggestion in the passage that price-fixing in industrialized societies is normal arises from the author’s statement that price-fixing is
(a) a profitable result of economic development
(b) an inevitable result of the industrial system
(c) the result of a number of carefully organized decisions
(d) a phenomenon common to industrialized and non-industrialized societies
294. According to the author, price-fixing in non-socialist countries is often
(a) accidental but productive
(b) illegal but useful
(c) legal and innovative
(d) intentional and widespread
295. According to the author, what is the result of the Soviet Union’s change in economic policy in the 1970’s?
(a) Soviet firms show greater profit.
(b) Soviet firms have less control over the free market.
(c) Soviet firms are able to adjust to technological advances.
(d) Soviet firms have some authority to fix prices.
296. With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree?
(a) The directors of large firms will continue to anticipate the demand for products.
(b) The directors of large firms are less interested in achieving a predictable level of profit than in achieving a large profit.
(c) The directors of large firms will strive to reduce the costs of their products.
(d) Many directors of large firms believe that the government should establish the prices that will be charged for products.
297. In the passage, the author is primarily concerned with
(a) predicting the consequences of a practice
(b) criticizing a point of view
(c) calling attention to recent discoveries
(d) proposing a topic for research
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