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NEW QUESTION 44
Technically a given category of insurance policy is under priced if, over time, claims against it plus expenses associated with it exceed total income from premiums. But premium income can be invested and will then yield returns of its own. Therefore, an under priced policy does not represent a net loss in every case.
The argument above is based on which of the following assumptions?
- A. A policy that represents a net loss to the insurance company is not an underpriced policy in every case.
- B. There are policies for which the level of claims per year can be predicted with great accuracy before premiums are set.
- C. No insurance policies are deliberately underpriced in order to attract customers to the insurance company offering such policies.
- D. The claims against at least some underpriced policies do not require paying out all of the premium income from those policies as soon as it is earned.
- E. The income earned by investing premium income is the most important determinant of an insurance company's profits.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION 45
Named a member of the committee to draw up a Declaration of Independence, the basic draft was completed by Thomas Jefferson in a week.
- A. Thomas Jefferson in a week completed the basic draft.
- B. Thomas Jefferson completed the basic draft in a week.
- C. the basic draft was completed by Thomas Jefferson in a week.
- D. the basic draft Thomas Jefferson completed in a week.
- E. the basic draft was completed by Thomas Jefferson in a week.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The best answer is D.
The sentence starts with the adjectival phrase, Named a member of the committee to draw up a Declaration of Independence. That phrase is supposed to modify the noun that comes immediately after it, making A, B, and C incorrect. E is incorrect because in a week incorrectly comes between the noun and verb.
NEW QUESTION 46
Cable-television spokesperson: Subscriptions to cable television are a bargain in comparison to "free" television. Remember that "free" television is not really free. It is consumers, in the end, who pay for the costly advertising that supports "free" television.
Which of the following, if true, is most damaging to the position of the cable-television spokesperson?
- A. There is as much advertising on many cable-television channels as there is on "free" television channels.
- B. Consumers who do not own television sets are less likely to be influenced in their purchasing decisions by television advertising than are consumers who own television sets.
- C. Cable-television subscribers can choose which channels they wish to receive, and the fees vary accordingly.
- D. For locations with poor television reception, cable television provides picture quality superior to that provided by free television.
- E. Subscriptions to cable television include access to some public-television channels, which do not accept advertising.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION 47 
- A. Statement (1) ALONE is sufficient but statement (2) alone Is not sufficient.
- B. Statement (2) ALONE is sufficient, but statement (1) atone is not sufficient.
- C. EACH statement ALONE b sufficient.
- D. Statements (1) and (2) TOGETHER are NOT sufficient.
- E. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
Answer: B
NEW QUESTION 48
Which of the following is the most logical completion of the passage below?
Many companies have been pushing for a three-week extension of daylight saving time, which would mean that the sun would continue to set an hour later during the fall months. The owners of a chain of convenience stores, for example, expect to gain $15 million a year in additional sales, mostly from people who tend to______
- A. spend less money in the fall
- B. shop at these stores when they are pressed for time
- C. stay outdoors during the fall months
- D. spend more money in the fall
- E. stay away from these stores after dark
Answer: E
Explanation:
Explanation/Reference:
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NEW QUESTION 49
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