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NEW QUESTION 39 Harper's Pencils manufactures and sells the same pencils as Johnson's Supply. Employee wages account for forty percent of the cost of manufacturing pencils at both factories. Harper's is seeking a competitive edge over Johnson's supply. Therefore, to promote this end, Harper's should lower employee wages. Which of the following, if true, seriously weakens the argument above?

• A. Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.
• B. Johnson's Supply pays its employees, on average, ten percent more than does Harper's Pencils.
• C. Lowering wages would reduce the quality of employee work and this reduced quality would lead to lowered sales.
• D. Harper's Pencils has taken away twenty percent of Johnson's Supply business over the last year.
• E. Because they make a small number of specialty artist's pencils, pencil manufacturers cannot receive volume discounts on raw materials.

Answer: C Explanation: Explanation/Reference: Explanation: The best answer is B. The effect of lowering wages is to reduce quality sufficiently to reduce sales. This is a good reason to doubt that wage cuts would give Johnson any competitive edge.   NEW QUESTION 40 The passage most strongly indicates that the author would agree with which of the following statements?

• A. None of the subjects in the various studies other than the 1998 study who seemed to commit the conjunction fallacy actually did commit it.
• B. Many of the subjects in the various studies In addition to the 1998 study probably committed the conjunction fallacy.
• C. People who have studied the mathematical principles of probability are very unlikely to commit the conjunction fallacy.
• D. The conjunction fallacy is rarely committed outside of betting contexts.
• E. The conceptions of "probability" that underlie everyday use of the word rarely, if ever, conform to the mathematical principles of probability.

Answer: E Explanation: Explanation Mathematical principles of probability entail that for any future event, the probability that it will occur Is at least as great as the probability that both it and some other given event will occur. Consider, for example, the following statements that were shown to subjects in a 1998 study. X The percentage of adolescent smokers In Texas will decrease at least 15% from current levels by September 1, 1999. Y The cigarette tax in Texas will increase by $1.00 per pack in 1999. Z The cigarette tax in Texas will increase by $1.00 per pack in 1999, and the percentage of adolescent smokers in Texas will decrease at least 15% from current levels by September 1, 1999. Z("Kand X") could not have been more probable than X. Nevertheless, many of the subjects judged Zto be more probable than X. This mistaken form of reasoning, displayed with surprising frequency in various studies in addition to the 1998 study, is known as the "conjunction fallacy." A number of researchers have offered alternative explanations for the seeming manifestations of the mistake, thus arguing that the fallacy is less widely committed than the various studies would indicate. Some have claimed that research subjects can take "probability" in a sense that does not conform to the mathematical principles of probability. Detailed descriptions of some such conceptions of "probability" have been developed under the names of "confirmation" and "support." Other researchers would claim, correctly, that subjects shown Z(" Kand X") and ^simultaneously will sometimes think of Xas involving the negation of Y-as a claim that the percentage of adolescent smokers in Texas will decrease, but without the $1.00 increase in the cigarette tax. However, although the subjects in the 1998 study were to consider Xand Z simultaneously, the statements were presented in terms of bets rather than explicit requests for judgments of relative probability. Subjects were asked to choose between Zand X, with a chance of winning $50.00 if the chosen statement turned out to be true. Terms such as "most probable," "likely," etc., were thus avoided, and the interpretation of X\n conjunction with the negation of Kwas thereby eliminated. And with these alternative explanations eliminated, many of the subjects nonetheless bet on Zrather than X:   NEW QUESTION 41 Being literal-minded about the afterlife, both royalty and commoners arranged to fill their tombs with household objects, each object a necessity for daily life, ready for use

• A. each object a necessity for daily life, was ready for use.
• B. each object a necessity for daily life, ready for use.
• C. every object a necessity for daily life, it is ready for use.
• D. all the objects a necessity for daily life, they are ready for use.
• E. all the objects a necessity for daily life, ready for use.

Answer: B Explanation: Explanation/Reference: Explanation: The best answer is A. In choice A, the words object and necessity, both singular, agree.   NEW QUESTION 42 The acrimony in Washington, communicated to the general public to a large degree in sound-bite epithets from the principals on evening television newscasts, contributed to a sour mood between the electorate.

• A. contributing to a sour mood inside the electorate.
• B. contributed to a sour mood between the electorate
• C. contributing to a sour mood between the electorate
• D. contributing to a sour mood among the electorate
• E. contributed to a sour mood among the electorate

Answer: E Explanation: Explanation/Reference: Explanation: A and B are incorrect because of the use of between for more than two. B, D and E are incorrect because of the use of the gerund form of the word where the past form, contributed, is needed.   NEW QUESTION 43 ......