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											Q1.Most economists in the United States seem captivated by spell of the free market. Consequently, nothing
seems good or normal that does not accord with the requirements of the free market.
A price that is determined by the seller or for that matter, established by anyone other than the aggregate of
consumers seems pernicious, accordingly, it requires a major act of will to think of price - fixing (the
determination of prices by the seller) as both "normal"? and having a valuable economic function. In fact, price-
fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless
consequence of its own development, the price-fixing that requires, Modern industrial planning requires and
rewards great size. Hence a comparatively small number of large firms will be competing for the same group of
consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products
for more than its competitors charge is commonly recognized by advocates of free-markets economic theories.
But each large firm will also act with full consideration of the needs that it has in common with the other large
firms competing for the same customers. Each large firm will thus avoid significant price cutting, because price
cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not
see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements
among large firms; it is not.
More over those economists who argue that allowing the free market to operate without interference is the most
efficient method of establishing prices have not considered the economies of non socialist countries other than
the United States. These economies employ intentional price-fixing usually in an overt fashion. Formal price
fixing by cartel and informal price fixing by agreements covering the members of an industry are common
place. Were there something peculiarly efficient about the free market and inefficient about price fixing, the
countries that have avoided the first and used the second would have suffered drastically in their economic
development. There is no indication that they have.
Socialist industry also works within a frame work of controlled prices. In early 1970's, the Soviet Union began to
give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded
the capitalist system. Economists in the United States have hailed the change as a return to the free market.
But Soviet firms are no more subject to prices established by free market over which they exercise little
influenced than are capitalist firms.
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
 - E:   summarizing conflicting opinions

 solution: B



Q2.The discoveries of the white dwarf, the neutron star, and the black hole, coming well after the discovery of the
red giant are among eh most exciting developments in decades because they may be well present physicists
with their greatest challenge since the failure of classical mechanics. In the life cycle of the star, after all of the
hydrogen and helium fuel has been burned, the delicate balance between the outer nuclear radiations.
Pressure and the stable gravitational force become disturbed and slow contraction begins. As compression
increases, very dense plasma forms. If the initial star had mass of less than 1.4 solar masses (1.4 times the
mass of our sun), the process ceases at the density of 1,000 tons per cubic inch, and the star becomes the
white dwarf. However, if the star was originally more massive, the white dwarf plasma can't resist the
gravitations pressures, and in rapid collapse, all nuclei of the star are converted to a gas of free neutrons.
Gravitational attraction compresses this neutron gas rapidly until a density of 10 tons per cubic inch is reached;
at this point the strong nuclear force resists further contraction. If the mass of the star was between 1.4 and a
few solar masses, the process stops here, and we have a neutron star. But if the original star was more
massive than a few solar masses, even the strong nuclear forces cannot resist the gravitational brunch. The
neutrons are forced into one another to form heavier hadrons and these in turn coalesce to form heavier
entities, of which we as yet know nothing. At this point, a complete collapse of the stellar mass occurs; existing
theories predict a collapse to infinite density and infinitely small dimensions Well before this, however, the
surface gravitational force would become so strong that no signal could ever leave the star - any photon emitted
would fall back under gravitational attraction - and the star would become black hole in space. This
gravitational collapse poses a fundamental challenge to physics. When the most widely accepted theories
predict such improbable things as infinite density and infinitely small dimensions, it simply means that we are
missing some vital insight. This last happened in physics in the 1930's, when we faced the fundamental
paradox concerning atomic structure. At that time, it was recognized that electrons moved in table orbits about
nuclei in atoms. However, it was also recognized that if charge is accelerated, as it must be to remain in orbit, it
radiates energy; so, theoretically, the electron would be expected eventually to spiral into the nucleus and
destroy the atom. Studies centered around this paradox led to the development of quantum mechanics. It may
well be that an equivalent t advance awaits us in investigating the theoretical problems presented by the
phenomenon of gravitational collapse.
The primary purpose of the passage is to
 - A:   offer new explanations for the collapse of stars.
 - B:   explain the origins of black holes, neutron stars, and white dwarfs.
 - C:   compare the structure of atoms with the structure of the solar system.
 - D:   explain how the collapse of stars challenges accepted theories of physics.
 - E:   describe the imbalance between radiation pressure and gravitational force

 solution: D



Q3.The discoveries of the white dwarf, the neutron star, and the black hole, coming well after the discovery of the
red giant are among eh most exciting developments in decades because they may be well present physicists
with their greatest challenge since the failure of classical mechanics. In the life cycle of the star, after all of the
hydrogen and helium fuel has been burned, the delicate balance between the outer nuclear radiation. Pressure
and the stable gravitational force becomes disturbed and slow contraction begins. As compression increases,
very dense plasma forms. If the initial star had mass of less than 1.4 solar masses (1.4 times the mass of our
sun), the process ceases at the density of 1,000 tons per cubic inch, and the star becomes the white dwarf.
However, if the star was originally more massive, the white dwarf plasma can't resist the gravitations pressures,
and in rapid collapse, all nuclei of the star are converted to a gas of free neutrons. Gravitational attraction
compresses this neutron gas rapidly until a density of 10 tons per cubic inch is reached; at this point the strong
nuclear force resists further contraction. If the mass of the star was between 1.4 and a few solar masses, the
process stops here, and we have a neutron star. But if the original star was more massive than a few solar
masses, even the strong nuclear forces cannot resist the gravitational brunch. The neutrons are forced into one
another to form heavier hadrons and these in turn coalesce to form heavier entities, of which we as yet know
nothing. At this point, a complete collapse of the stellar mass occurs; existing theories predict a collapse to
infinite density and infinitely small dimensions Well before this, however, the surface gravitational force would
become so strong that no signal could ever leave the star - any photon emitted would fall back under
gravitational attraction - and the star would become black hole in space. This gravitational collapse poses a
fundamental challenge to physics. When the most widely accepted theories predict such improbable things as
infinite density and infinitely small dimensions, it simply means that we are missing some vital insight. This last
happened in physics in the 1930's, when we faced the fundamental paradox concerning atomic structure. At
that time, it was recognized that electrons moved in table orbits about nuclei in atoms. However, it was also
recognized that if charge is accelerated, as it must be to remain in orbit, it radiates energy; so, theoretically, the
electron would be expected eventually to spiral into the nucleus and destroy the atom. Studies centered around
this paradox led to the development of quantum mechanics. It may well be that an equivalent t advance awaits
us in investigating the theoretical problems presented by the phenomenon of gravitational collapse.
According to the passage, in the final stages of its development our own sun is likely to take the form of a
 - A:   white dwarf
 - B:   neutron star
 - C:   red giant
 - D:   gas of free neutrons
 - E:   black hole

 solution: A



Q4.The discoveries of the white dwarf, the neutron star, and the black hole, coming well after the discovery of the
red giant are among eh most exciting developments in decades because they may be well present physicists
with their greatest challenge since the failure of classical mechanics. In the life cycle of the star, after all of the
hydrogen and helium fuel has been burned, the delicate balance between the outer nuclear radiation. Pressure
and the stable gravitational force becomes disturbed and slow contraction begins. As compression increases,
very dense plasma forms. If the initial star had mass of less than 1.4 solar masses (1.4 times the mass of our
sun), the process ceases at the density of 1,000 tons per cubic inch, and the star becomes the white dwarf.
However, if the star was originally more massive, the white dwarf plasma can't resist the gravitations pressures,
and in rapid collapse, all nuclei of the star are converted to a gas of free neutrons. Gravitational attraction
compresses this neutron gas rapidly until a density of 10 tons per cubic inch is reached; at this point the strong
nuclear force resists further contraction. If the mass of the star was between 1.4 and a few solar masses, the
process stops here, and we have a neutron star. But if the original star was more massive than a few solar
masses, even the strong nuclear forces cannot resist the gravitational brunch. The neutrons are forced into one
another to form heavier hadrons and these in turn coalesce to form heavier entities, of which we as yet know
nothing. At this point, a complete collapse of the stellar mass occurs; existing theories predict a collapse to
infinite density and infinitely small dimensions Well before this, however, the surface gravitational force would
become so strong that no signal could ever leave the star - any photon emitted would fall back under
gravitational attraction - and the star would become black hole in space. This gravitational collapse poses a
fundamental challenge to physics. When the most widely accepted theories predict such improbable things as
infinite density and infinitely small dimensions, it simply means that we are missing some vital insight. This last
happened in physics in the 1930's, when we faced the fundamental paradox concerning atomic structure. At
that time, it was recognized that electrons moved in table orbits about nuclei in atoms. However, it was also
recognized that if charge is accelerated, as it must be to remain in orbit, it radiates energy; so, theoretically, the
electron would be expected eventually to spiral into the nucleus and destroy the atom. Studies centered around
this paradox led to the development of quantum mechanics. It may well be that an equivalent t advance awaits
us in investigating the theoretical problems presented by the phenomenon of gravitational collapse.
According to the passage, an imbalance arises between nuclear radiation pressure and gravitational force in
stars because
 - A:   the density of a star increases as it ages
 - B:   radiation pressure increases as a star increases in mass
 - C:   radiation pressure decreases when a star's fuel has been consumed
 - D:   the collapse of a star increases its gravitational force.
 - E:   dense plasma decreases the star's gravitational force.

 solution: C



Q5.The discoveries of the white dwarf, the neutron star, and the black hole, coming well after the discovery of the
red giant are among eh most exciting developments in decades because they may be well present physicists
with their greatest challenge since the failure of classical mechanics. In the life cycle of the star, after all of the
hydrogen and helium fuel has been burned, the delicate balance between the outer nuclear radiation. Pressure
and the stable gravitational force becomes disturbed and slow contraction begins. As compression increases,
very dense plasma forms. If the initial star had mass of less than 1.4 solar masses (1.4 times the mass of our
sun), the process ceases at the density of 1,000 tons per cubic inch, and the star becomes the white dwarf.
However, if the star was originally more massive, the white dwarf plasma can't resist the gravitations pressures,
and in rapid collapse, all nuclei of the star are converted to a gas of free neutrons. Gravitational attraction
compresses this neutron gas rapidly until a density of 10 tons per cubic inch is reached; at this point the strong
nuclear force resists further contraction. If the mass of the star was between 1.4 and a few solar masses, the
process stops here, and we have a neutron star. But if the original star was more massive than a few solar
masses, even the strong nuclear forces cannot resist the gravitational brunch. The neutrons are forced into one
another to form heavier hadrons and these in turn coalesce to form heavier entities, of which we as yet know
nothing. At this point, a complete collapse of the stellar mass occurs; existing theories predict a collapse to
infinite density and infinitely small dimensions Well before this, however, the surface gravitational force would
become so strong that no signal could ever leave the star - any photon emitted would fall back under
gravitational attraction - and the star would become black hole in space. This gravitational collapse poses a
fundamental challenge to physics. When the most widely accepted theories predict such improbable things as
infinite density and infinitely small dimensions, it simply means that we are missing some vital insight. This last
happened in physics in the 1930's, when we faced the fundamental paradox concerning atomic structure. At
that time, it was recognized that electrons moved in table orbits about nuclei in atoms. However, it was also
recognized that if charge is accelerated, as it must be to remain in orbit, it radiates energy; so, theoretically, the
electron would be expected eventually to spiral into the nucleus and destroy the atom. Studies centered around
this paradox led to the development of quantum mechanics. It may well be that an equivalent t advance awaits
us in investigating the theoretical problems presented by the phenomenon of gravitational collapse.
The author asserts that the discoveries of the white dwarf, the neutron star, and the black hole are significant
because these discoveries.
 - A:   demonstrate the probability of infinite density and infinitely small dimensions
 - B:   pose the most comprehensive and fundamental problem faced by physicists in decades
 - C:   clarify the paradox suggested by the collapse of electrons into atomic nuclei.
 - D:   establish the relationship between the mass and gravitational pressure.
 - E:   assist in establishing the age of the universe by tracing the life histories of stars.

 solution: B



Q6.Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as
well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why
Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they
lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in
apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do
their best to find minority subcontractors and record their efforts to do so on forms field with the government.
Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning
parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of
corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of
corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year with no
letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses
dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially,
since most are small concerns and, unlike large businesses they often need to make substantial investments in
new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their
subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world
of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal
estimates and bids. Both consume valuable time and resources and a small company's efforts must soon result
in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may-seek to cash inon the increasing apportionments through
formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate
reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither
could Third, a minority enterprise that secures the business of one large corporate customer often runs the
danger of becoming - and remaining dependent. Even in the best of circumstances, fierce competition from
larger, more established companies makes it difficult for small concerns to broaden their customer bases; when
such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle
against complacency arising from their current success.
The passage supplies information that would answer which of the following questions?
 - A:   What federal agencies have set percentage goals for the use of minority owned businesses in public works

contracts?
 - B:   To which governments agencies must businesses awarded federal contracts report their efforts to find

minority subcontractors?
 - C:   How widespread is the use of minority-owned concerns as "fronts; by White backers seeking to obtain

subcontracts?
 - D:   How many more minority owned businesses were there in 1977 than in 1972?
 - E:   What is one set of conditions under which a small business might find itself financially overextended?

 solution: E



Q7.Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as
well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why
Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they
lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in
apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do
their best to find minority subcontractors and record their efforts to do so on forms field with the government.
Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning
parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of
corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of
corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year with no
letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses
dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially,
since most are small concerns and, unlike large businesses they often need to make substantial investments in
new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their
subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world
of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal
estimates and bids. Both consume valuable time and resources and a small company's efforts must soon result
in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may-seek to cash inon the increasing apportionments through
formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate
reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither
could Third, a minority enterprise that secures the business of one large corporate customer often runs the
danger of becoming - and remaining dependent. Even in the best of circumstances, fierce competition from
larger, more established companies makes it difficult for small concerns to broaden their customer bases; when
such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle
against complacency arising from their current success.
According to the passage, civil rights activists maintain that one disadvantage under which minority owned
businesses have traditionally had to labor is that they have
 - A:   been specially vulnerable to governmental
 - B:   been denied bank loans at rates comparable to those afforded larger competitors
 - C:   not had sufficient opportunity to secure businesses created by large corporations
 - D:   not been able to advertise in those media that reach large numbers of potential customers
 - E:   not had adequate representation in the centers of government power.

 solution: C



Q8.Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as
well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why
Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they
lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in
apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do
their best to find minority subcontractors and record their efforts to do so on forms field with the government.
Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning
parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of
corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of
corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year with no
letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses
dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially,
since most are small concerns and, unlike large businesses they often need to make substantial investments in
new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their
subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world
of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal
estimates and bids. Both consume valuable time and resources and a small company's efforts must soon result
in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may-seek to cash inon the increasing apportionments through
formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate
reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither
could Third, a minority enterprise that secures the business of one large corporate customer often runs the
danger of becoming - and remaining dependent. Even in the best of circumstances, fierce competition from
larger, more established companies makes it difficult for small concerns to broaden their customer bases; when
such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle
against complacency arising from their current success.
The passage suggests that the failure of a large business to have its bids for subcontracts results quickly in
order might cause it to
 - A:   experience frustrations but not serious financial harm
 - B:   face potentially crippling fixed expenses
 - C:   have to record its efforts on forms filed with the government
 - D:   increase its spending with minority subcontractors
 - E:   revise its procedure for making bids for federal contracts and subcontracts

 solution: A



Q9.Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as
well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why
Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they
lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in
apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do
their best to find minority subcontractors and record their efforts to do so on forms field with the government.
Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning
parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of
corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of
corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year with no
letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses
dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially,
since most are small concerns and, unlike large businesses they often need to make substantial investments in
new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their
subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world
of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal
estimates and bids. Both consume valuable time and resources and a small company's efforts must soon result
in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may-seek to cash inon the increasing apportionments through
formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate
reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither
could Third, a minority enterprise that secures the business of one large corporate customer often runs the
danger of becoming - and remaining dependent. Even in the best of circumstances, fierce competition from
larger, more established companies makes it difficult for small concerns to broaden their customer bases; when
such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle
against complacency arising from their current success.
The authors implied that the minority owned concern that does the greater part of its business with one large
corporate customer should
 - A:   avoid competition with the larger, more established concerns by not expanding
 - B:   concentrate on securing even more business from that corporation
 - C:   try to expands its customers base to avoid becoming dependent on the corporation
 - D:   pass on some of the work to be done for the corporation to other minority owned concerns.
 - E:   use its influence with the other corporation to promote subcontracting with other minority concerns.

 solution: C



Q10.Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as
well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why
Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they
lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in
apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do
their best to find minority subcontractors and record their efforts to do so on forms field with the government.
Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning
parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of
corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of
corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year with no
letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses
dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially,
since most are small concerns and, unlike large businesses they often need to make substantial investments in
new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their
subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world
of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal
estimates and bids. Both consume valuable time and resources and a small company's efforts must soon result
in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may-seek to cash inon the increasing apportionments through
formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate
reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither
could Third, a minority enterprise that secures the business of one large corporate customer often runs the
danger of becoming - and remaining dependent. Even in the best of circumstances, fierce competition from
larger, more established companies makes it difficult for small concerns to broaden their customer bases; when
such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle
against complacency arising from their current success.
It can be inferred from the passage that, compared with the requirements of law, the percentage goals set by
"some federal and local agencies" are
 - A:   more popular with large corporations
 - B:   more specific
 - C:   less controversial
 - D:   less expensive to enforce
 - E:   easier to comply with

 solution: B