XAT 2012

Instructions

For the following questions answer them individually

Question 21

Which word is the opposite of the word
‘hypothesize’?

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Question 22

Read the sentences and choose the option that best arranges them in a logical order. (1 mark)
A. In fact, it is considered as a dumping ground for unwanted people in quite a few organizations.
B. In many parts of the country, traditional castes such as Kothari, Kotwal, Bhandari and Bhandarkar have for generations been dealing in procuring, stocking, distributing goods and merchandise.
C. This is due to the fact that Indian traders have been trading with many parts of the world.
D. However, though the concept of warehousing has been prevalent for over 2000 years, the warehouse has not yet obtained due recognition in modern times.
E. The concept of warehousing or stores function is not new in India.

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Question 23

Concurrence means all of the following except:

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Question 24

Read the sentences and choose the option that best arranges them in a logical order.
i. All it has to do is to drive up the inflation rate-examples are the damage Lyndon Johnson’s inflationary policies did to the US economy and the damage which consistently pro-inflationary policies have done to the economy of Italy.
ii.It is easy, the record shows, for a government to do harm to its domestic economy.
iii.Contrary to what economists confidently promised forty years ago, business cycles have not been abolished.
iv.They still operate pretty much the way they have been operating for the past 150 years
v.But there is not the slightest evidence that any government policy to stimulate the economy has impact, whether that policy be Keynesian, monetarist, supply - side or neoclassical.

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Question 25

When income tax rates are reduced, there is an increase in taxable income, and an increase in
taxable income results in increased total income tax revenues for the government. Which of the following is analogues to the argument above in terms of its logical features?

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Question 26

Not wanting to present an unwanted optimistic picture in the board meeting, the CEO estimated the sales growth _____________.
The option that will best fill the blank in the above sentence would be:

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Instructions

Read the following passage and provide appropriate answers for the questions

The idea of demarcating certain areas within the country as special economic zones to promote investment and growth is not new. A large country unable to provide the kind of facilities and environment that can attract foreign investment throughout the country often finds it feasible and attractive to carve up some of its areas where such facilities can be provided. The laws and procedures for setting up new industries are waived to make the area business-friendly with developed infrastructure and a one-window interaction with government. In addition, huge tax benefits are promised to lure investors. China’s experience shows that if chalked out and implemented with care such a policy can accelerate the flow of capital and technology from abroad and thereby speed up growth. 

However, SEZs may not be the best option in all situations to clear the bottlenecks in growth.

India’s experience with export processing zones (EPZs) bears this out. They have failed in India for the simple reason that the factors that made the SEZs successful in China have been absent here. In India, as in China, EPZs were thought of as a way of providing an escape route from the stranglehold of control that prevailed over the Indian economy. But even while promising to ease the rigours of controls, Indian policy-makers could not give up their penchant for micromanaging from the centre and undoing the promised relaxations with all kinds of qualifications and “guidelines”. 

Over last two decades India has evolved into a market economy and much of governmental control has disappeared, but the flow of foreign direct investment has not reached anywhere near the levels of China. Besides, infrastructure building has fallen far short of what is required. Even after three years of the enactment of the Electricity Act (2003), private investment in electricity generation is still a trickle with the states refusing to give up the monopoly of their electricity boards in the matter of purchase of the power generated. While swearing by growth, governments at both the centre and the states cite the fiscal responsibility laws to plead their helplessness in making the required investments to improve infrastructure. 

Given the situation, the SEZs have apparently been thought of as a simple way out. In its enthusiasm for SEZs the commerce ministry forgot two critical lessons of the Chinese experience, viz., that an SEZ must be of an adequate size to provide opportunities for reaping the benefits of large-scale operations and their number should be few. Every industry or economic activity worth its name is now seeking SEZ status. Proposals are now being floated to invite foreign educational institutions to come to India with promises of SEZ treatment! The finance ministry apprehends a loss of nearly 1,75,000 crore in direct taxes, customs duties and excise duties over the next five years.

Question 27

The objective of the author in writing the above passage seems to be to

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Question 28

The author’s arguments suggest the following conclusions, except

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Question 29

The author does not oppose

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Question 30

The passage was most likely written in the year:

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