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Verbal Aptitude quiz for MBA entrance exam

Dear readers,

This quiz consists of questions from
various past papers of MBA entrance exams. Leave your answers/ responses in the
comments section below and soon we’ll let you know the correct answers!

Directions (Questions 1-5): Answer these questions independent of each
other.  

1. The argument for liberalization which answers the worries of the Left
parties about the possible trade deficits created by the opening up of the
Indian economy goes thus: ‘In today’s economic scenario, where there are many
trading countries, the trade between two specific countries need not be
balanced. The differing demands of goods and services and the differing
productive capabilities of the same among different countries will cause a
country like India to have trade deficits with some countries and surpluses
with other countries. On the whole, the trade deficits and surpluses will
balance out in order to give a trade balance’.

Which of the following conclusions best summarises the argument presented
in the passage above?

(1) India’s trade deficits and surpluses with other countries always
balance out.

(2) Left parties need not worry about trade deficits in India since its
trade will always be in balance even though it runs a deficit with a single
country.

(3) The Left parties in India should not be concerned about India’s trade
deficits with specific countries because they will balance out in the long run.

(4) None of these

2. 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 increases 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 these 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,

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

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

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

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

3. The cost of housing in many urban parts of India has become so excessive
that many young couples, with aboveaverage salaries, can only afford small
apartments. EMI and rent commitments are so huge that they cannot consider the
possibility of starting a family since a new baby would probably mean either
the mother or father giving up a wellpaid position-something they can ill
afford. The lack of or great cost of child-care facilities further precludes
the return of both parents to work.

Which of the following adjustments could practically be made to the
situation described above which would allow young couples to improve their
housing prospects?

(1) Encourage couples to have one child only

(2) Encourage couples to remain childless

(3) Encourage young couples to move to cheaper areas for living

(4) None of these is likely to have an impact on the current situation

4. In a famous experiment at the IISC campus, when a cat smelled milk, it
salivated. In the experiment, a bell was rung whenever food was placed near the
cat. After a number of trials, only the bell was rung, whereupon the cat would
salivate even though no food was present. Such behaviour has been observed in
other animals such as dogs, monkeys, etc and is a vital input for training
domesticated animals.

Which of the following conclusions may be drawn from the above experiment?

(1) The ringing of a bell was associated with food in the mind of the cat.

(2) Cats and other animals can be easily tricked.

(3) A conclusion cannot be reached on the basis of one experiment.

(4) Two stimuli are stronger than one.

5. Chewing tobacco has many benefits. However, the primary benefits occur
in the area of mental health. The habit originates in a search for contentment.
The life expectancy of our people has increased greatly in recent years; it is
possible that the relaxation and contentment and enjoyment produced by tobacco
chewing has lengthened many lives. Hence, chewing tobacco is beneficial.

Which of the following, if true, would weaken the above conclusion?

(1) The evidence cited in the statement covers only one example of the
effects of tobacco chewing.

(2) The government earns millions of rupees from the sales of chewing
tobacco

(3) There is as yet no statistical evidence to prove a link between chewing
and longevity.

(4) None of these

Directions (Questions 6-10): Each question has a group of sentences marked
A, B, C, D and E. Arrange these to form a logical sequence.

6.

A. It will take extraordinary political commitment and liberal public
funding during the 11th Plan for affordable housing to become a credible goal.

B. The National Urban Housing and Habitat Policy of the United Progressive
Alliance Government seeks to make access to housing, long acknowledged as a
fundamental right, a reality for all.

C. The task is staggering even if we go by conservative estimates.

D. The housing shortage to be met during the Plan is 26.53 million units,
which include the backlog from the 10th Plan.

E. If the existing stock of poor quality dwellings and the growing
urbanization-driven demand are taken into account, the real deficit will be
even higher.

(1) ADBEC       (2) ACDEB       (3) ABEDC       (4)
ABCDE

7.

A. The upsurge of public activism against the setting up of Special
Economic Zones, which eventually forced the State government to announce the
scrapping of all 15 such projects, is an impressive case in point.

B. Early last year, a similar agitation coerced the government into calling
for a revision of the Goa Regional Plan 2011, a controversial document that
opened up large swathes of land, including green belts and coastal stretches, for
construction.

C. The broad-based agitation against SEZs has demonstrated the power of
popular protest in the State.

D. Those opposed to the projects had questioned the propriety of the
government acquiring large tracts of land and then selling them to promoters at
low prices.

E. A coastal State with an area of 3,700 square kilometres and a population
of about 1.4 million, Goa has always been extremely sensitive to the impact of
unrestrained economic development.

(1) CDEAB       (2) BCDEA       (3) EABCD       (4)
DABCE

8.

A. India’s security apparatus responds well when beset by crisis.

B. Potential targets must be secured as if terror strikes were imminent.

C. Here the Indian system’s record is appalling.

D. Despite years of painful experience, sensitive government installations
in New Delhi, including the headquarters of some of India’s key military
organisations and covert services, are defended in a manner that would be
considered unconscionably negligent in many parts of the world.

E. However, successful security depends not on crisis-time creativity but
on the disciplined and effective implementation of mundane, everyday protocols.

(1) ABDEC       (2) AEBCD       (3) ADECB       (4)
ABEDC

9.

A. On the Republican side, the Iowa results have left the picture somewhat
murkier.

B. Mike Huckabee beat the putative front-runner, Mitt Romney, by a margin
of 34.4 per cent to 2.54 per cent, but is not expected to carry the momentum
forward into New Hampshire.

C. Mr Huckabee’s victory is attributable largely to the strong support he
got from evangelical Christians who are estimated to make up as much as 60 per
cent of the caucus-goers.

D. Social and religious conservatives will constitute only small proportion
of voters, in which national security and fiscal concerns are expected to be
the main issues.

E. However, while Mr Romney might be free of a Huckabee challenge in New
Hampshire, he might be hard pressed to fend off John McCain  and Rudolph Guiliani, both of whom largely
stayed out of the Iowa campaign.

(1) ABCDE       (2) AEBCD       (3) ACDEB      
(4) ABCED

10.

A. Using biofuels made from corn, sugar cane and soy could have a greater
environmental impact than burning fossil fuels, according to experts.

B. Although the fuels themselves emit fewer greenhouse gases, they all have
higher costs in terms of biodiversity loss and destruction of farmland.

C. The EU has proposed that 10% of all fuel used in transport should come
from biofuels by 2020 and the emerging global market is expected to be worth
billions of dollars a year.

D. But the new fuels have attracted controversy.

E. The problems of climate change and the rising cost of oil have led to a
race to develop environment-friendly biofuels, such as palm oil  or ethanol derived from corn and sugar cane.

(1) DECBA       (2) ABCED       (3) ABECD       (4)
CDEBA

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Answers

1(3)    2(1)    
3(4)    4(1)     5(3)   
 6(4)   7(3)   
8(2)     9(2)    10(4)   

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