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Comprehension and Reasoning Challenge Day – 6

PASSAGE (4 Mins)

During the 1960’s and 1970’s, the primary economic development strategy of local governments in the United States was to attract manufacturing industries. Unfortunately, this strategy was usually implemented at another community’s expense: many manufacturing facilities were lured away from their moorings elsewhere through tax incentives and slick promotional efforts. Through the transfer of jobs and related revenues that resulted from this practice, one town’s triumph could become another town’s tragedy.

In the 1980’s the strategy shifted from this zero-sum game to one called “high-technology

development,” in which local governments competed to attract newly formed high-technology manufacturing firms. Although this approach was preferable to victimizing other geographical areas by taking their jobs, it also had its shortcomings: high-tech manufacturing firms employ only a specially trained fraction of the manufacturing workforce, and there simply are not enough high-tech firms to satisfy all geographic areas.

Recently, local governments have increasingly come to recognize the advantages of yet a third strategy: the promotion of homegrown small businesses. Small indigenous businesses are created by a nearly ubiquitous resource, local entrepreneurs. With roots in their communities, these individuals are less likely to be enticed away by incentives offered by another community. Indigenous industry and talent are kept at home, creating an environment that both provides jobs and fosters further entrepreneurship.

(Source – GMAT)

Questions 1-5 refer to the passage above.

1. The primary purpose of the passage is to

(A) advocate more effective strategies for encouraging the development of high- technology enterprises in the United States

(B) contrast the incentives for economic development offered by local governments with those offered by the private sector

(C) acknowledge and counter adverse criticism of programs being used to stimulate local economic development

(D) define and explore promotional efforts used by local governments to attract new industry

(E) review and evaluate strategies and programs that have been used to stimulate economic development .

2. The passage suggests which of the following about the majority of United States manufacturing industries before the high-technology development era of the 1980’s?

(A) They lost many of their most innovative personnel to small entrepreneurial enterprises.

(B) They experienced a major decline in profits during the 1960’s and 1970’s.

(C) They could provide real economic benefits to the areas in which they were located.

(D) They employed workers who had no specialized skills.

(E) They actively interfered with local entrepreneurial ventures.

3. The tone of the passage suggests that the author is most optimistic about the economic development potential of which of the following groups?

(A) Local governments

(B) High-technology promoters

(C) Local entrepreneurs

(D) Manufacturing industry managers

(E) Economic development strategists

4. The passage does NOT state which of the following about local entrepreneurs?

(A) They are found nearly everywhere.

(B) They encourage further entrepreneurship.

(C) They attract out-of-town investors.

(D) They employ local workers.

(E) They are established in their communities.

5. The author of the passage mentions which of the following as an advantage of high-technology development?

(A) It encourages the modernization of existing manufacturing facilities.

(B) It promotes healthy competition between rival industries.

(C) It encourages the growth of related industries.

(D) It takes full advantage of the existing workforce.

(E) It does not advantage one local workforce at the expense of another.


Six scientists A, B, C, D, E and F are to present a paper each at a one day conference. Three of them will present their papers in the morning session before the lunch break whereas the other three will be presented in the afternoon session. The lectures have to be scheduled in such a way that they comply with the following restrictions:

B’s should present his paper immediately before C’s presentation. Their presentations cannot be separated by the lunch break. D must be either the first or the last scientist to present his paper.


1. In case C is to be the fifth scientist to present his paper, then B must be
a) first
b) second
c) third
d) fourth

2. In case F is to present his paper immediately after D presents his paper, C could be scheduled for which of the following places in the order of presenters?
a) first
b) second
c) third
d) fifth

3. In case F and E are the fifth and sixth presenters respectively then which of the following must be true?
a) A is the first in the order of presenters
b) A is the third in the order of presenters
c) A is the fourth in the order of presenters
d) B is the first in the order of presenters



I. d

II.  c


The amount spent by each were
 Sahnaz.- 2517
Archana – 2234
Helen – 1340
Dhenuka – 1193
Chellamma  – 1139
1. C
2. B
3. A