Critical Reasoning section 1 MCQ Detailed Explanation And More Example

Question : 1

Inflation can only be fundamentally caused by two factors— supply side factors and demand side factors. These factors are either reductions in the supply of goods and services or increase in demand due to either the increased availability of money or the reallocation of demand. Unless other compensating changes also occur, inflation is bound to result if either of this occurs. In economies prior to the introduction of banks (a pre-banking economy) the quantity of money available, and hence, the level of demand, was equivalent to the quantity of gold available. If the statements above are true, then it is also true that in a pre-banking economy:

a) any inflation would be the result of reductions in the supply of goods and services.

b) if there is a reduction in the quantity of gold available, then, other things being equal, inflation would result.

c) if other factors in the economy are unchanged, increasing the quantity of gold available would lead to inflation.

d) whatever changes in demand occur, there would be compensating changes in the supply of goods and services.

Question : 2

Cigarettes constitute a mere 20% of tobacco consumption in India. And fewer than 15% of the 200 million tobacco users consume cigarettes. Yet these 15% contribute nearly 90% of the tax revenues to the Exchequer from the tobacco sector. The punitive cigarette taxation regime has kept the tax base narrow, and reducing taxes will expand this base. Which one of the following best bolsters the conclusion that reducing duties will expand the tax base?

a) The cigarette manufacturers' association has decided to indulge in aggressive promotion.

b) The cigarette manufacturers are lobbying for reduction on duties.

c) There is a likelihood that tobacco consumers will shift to cigarette smoking if cigarette prices were to reduce.

d) An increase in duties on non-cigarette tobacco may lead to a shift in favour of cigarette smoking.

Question : 3

Argentina's beef cattle herd has dropped to under 50 million from 57 million ten years ago in 2004. The animals are worth less, too: prices fell by over a third last year, before recovering slightly . Most local meat packers and processors are in financial trouble, and recent years has seen a string of plant closures. The Beef producer's Association has now come up with a massive advertisement campaign calling upon Argentines to eat more beef-their "juicy, healthy, routed, platefilling steaks." Which one of the following , if true, would contribute most to a failure of the campaign?

a) There has been a change in consumer preference towards eating leaner meats like chicken and fish.

b) The inability to cross breed native cattle with improved varieties has not increased production to adequate levels.

c) Prices of imported beef have been increasing, thus making locally grown beef more competitive in terms of policy.

d) Animal rights pressure groups have come up rapidly, demanding better and humane treatment of farmyard animals like beef cattle

Question : 4

Which of the following strengthens the argument?

a) Agricultural research is scientific.

b) Verified information is reliable.

c) Science gives abstract theories.

d) Science is a compulsory subject.

e) None of these

Question : 5

Which of the following will weaken the above argument?

a) Man is an intelligent creature.

b) Scientific information is revised.

c) Science gives information.

d) News agencies cannot verify news.

e) None of these

Question : 6

The Yoga system is divided into two principal parts — Hatha and Raja Yoga. Hatha Yoga deals principally with the physiological part of man with a view to establish his health and train his will. The processes prescribed to arrive at this end are so difficult that only a few resolute souls go through all the stages of its practice. Many have failed and some have died in the attempt. It is therefore strongly denounced by all the philosophers. The most illustrious Shankaracharya has remarked in his treatise called Aparokshanubhuti that "the system of Hatha Yoga was intended for those whose wordly desires are not pacified or uprooted."
Which one of the following, if true, most substantially strengthens the idea given in the passage?

a) The percentage of people in a given ashram practising Raja Yoga is more than the percentage of people practising Hatha Yoga.

b) The number of Yoga schools teaching Raja Yoga is more than the number of Yoga schools teaching Hatha Yoga.

c) The number of people in a given ashram practising Raja Yoga is more than the number of people practising Hatha Yoga.

d) The number of teachers teaching Raja Yoga is more than the number of teachers teaching Hatha Yoga.

e) The percentage of students who have successfully learnt Raja Yoga is more than the percentage of students who have successfully learnt Hatha Yoga.