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- NEW SET
- A
- The demographic trends of the decade ahead will reinforce many
- of the long-term economic trends. Growth in the size of the population
- 25 to 34 years old will peak in the mid-eighties, dampening further
- growth in demand for some durable goods.
- next
- 1
- 1. According to the passage, demand for durable goods after
- the mid-eighties:
-
- A. will decrease
- B. will slow in its rate of growth
- C. will grow even faster
- D. will depend largely upon economic trends
- E. will grow as the 25-34 age group grows
- next
- b
- 0
- B
- Correct.
- next
- wrong answer explanation
- B
- (B) Demand would peak with population growth in the mid-eighties, then
- slow in rate of growth thereafter.
- NEXT
- NEW SET
- B
- Slower growth in the adult population and the addition of fewer
- households compared with the seventies will also limit demand for
- housing-related durable goods. Slower population growth also implies
- sluggish expansion in demand for goods, such as food, which respond
- primarily to numbers of people.
- next
- 1
- 1. The main idea of this passage and the prior one is:
-
- A. Economic trends affect demand for durable goods.
- B. Demand for food depends upon growth in adult population.
- C. Demographic trends affect demand for food and durable goods.
- D. Demand for housing-related goods depends upon the demand for food.
- E. The addition of fewer households depends on the growth in size of
- the 25-34 year old age group.
- next
- c
- 0
- C
- Correct.
- next
- wrong answer explanation
- C
- (C) Population growth is one demographic trend that affects demand.
- NEXT
- NEW SET
- C
- Several demographic factors will bolster household income. These
- include the aging of the baby boom and the associated increase in that
- generation's relative income, the growing number of two-income families,
- and the continuing trend toward small households and families.
- next
- 1
- 1. This passage suggests that all of the following contribute to
- higher income except:
-
- A. baby boomers getting older
- B. two-income families
- C. smaller families
- D. increased teen-age employment
- E. smaller households
- next
- d
- 0
- D
- Correct.
- next
- wrong answer explanation
- D
- (D) Teen-age employment is not a factor in the analysis of household
- income.
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- NEW SET
- D
- Stronger income per household and per household member will combine
- with the growth in aggregate income to bolster demand for discretionary
- goods and services.
- next
- 1
- 1. The passage suggests that demand for goods and services:
-
- A. falls as household incomes rise
- B. rises as income per household member falls
- C. rises as aggregate income falls
- D. falls as aggregate income rises
- E. rises as income per household and aggregate income rise
- next
- e
- 0
- E
- Correct.
- next
- wrong answer explanation
- E
- (E) As income rises, demand for goods and services also rises.
- NEXT
- NEW SET
- E
- Both the economic and demographic trends point to relatively strong
- growth in labor-saving and leisure-enhancing goods and services.
- Examples include the mass marketing of video recorders, the spread of
- cable television, recent experiments with electronic home shopping, and
- the development of digital recording and playback.
- next
- 1
- 1. The passage suggests that all of the following are labor-saving
- or leisure-enhancing except:
-
- A. video recorders
- B. rising economic and demographic trends
- C. cable television
- D. electronic home shopping
- E. digital recording
- next
- b
- 0
- 2
- Correct.
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- wrong answer explanation
- 2
- (B) It is the economic and demographic trends that show a growth in
- labor-saving and leisure-enhancing goods.
- next
- 2
- 2. This passage and previous ones suggest that demand for labor-saving
- and leisure-enhancing goods:
-
- A. will rise in the 80's
- B. will fall in the 80's
- C. will fall as two-household incomes grow
- D. will fall as the baby boom ages
- E. will rise as demographic and economic trends offset decreases in
- aggregate income in the 80's
- next
- a
- 0
- F
- Correct.
- next
- wrong answer explanation
- F
- (A) Demand for labor-saving and leisure-enhancing goods will rise
- in the 80's.
- end