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PSAT Sample Questions ›› Critical Reading Section : Passage-Based Reading Questions

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PSAT Sample Passage-Based Reading Questions

  1. There was in increase of about 10 % in the investment in the public sector, like electricity, irrigation quarrying, public services and transport; even though the emphasis leaned towards transport and away from the other sectors mentioned. A 16-17% growth in investment, including a 30% increase in investment in business premises has been recorded in trade and services. Although there continued to be a decline in the share of agriculture in total gross investment in the economy, investment grew by 9% in absolute terms, largely spurred on by a 23% expansion of investment in agriculture equipment. Housing construction had 12% more invested in it in 1964, not so much owing to increase demand, as to fears of impending new taxes and limitation of building.

    There was a rise of close to 11% in the total consumption in real terms during 1964 and per capita personal consumption by under 7%, as in 1963. The undesirable trend towards a rapid rise in consumption, evident in previous years, remains unaltered. Since at current prices consumption rose by 16% and disposable income by 13%, there was evidently a fall in the rate of saving in the private sector of the economy. Once again a swift advance in the standard of living was indicated in consumption patterns. Though fruit consumption increased, expenditure on food, especially bread and staple items, declined significantly. There was a continuing increase in the outlay on furniture and household equipment, health, education and recreation. The greatest proof of altered living standards was the rapid expansion of expenditure on transport (including private cars) and personal services of all kinds, which occurred during 1964. The changing composition if purchased durable goods demonstrated the progressive affluence of large sectors of the public. On the one hand increased purchase of automobiles and television sets were registered, a point of saturation was rapidly being approached for items like the first household radio, gas cookers, and electric refrigerators.

    1. It is possible to to conclude from this passage, that the people of the country were
      1. spending more money than they earn
      2. investing and consuming at an accelerated pace
      3. saving more money than previously
      4. spending their money wisely
      5. lacking in necessities

      Ans : B

    2. According to the author the trend towards a rapid rise in consumption is "undesirable" as:
      1. there was an increase in the expenditure on frills and luxuries
      2. the people were affluent
      3. there was a rise in the standard of living
      4. people were eating less
      5. people were saving less

      Ans : E

    3. It is possible to conclude that the United States is not the discussed country as:
      1. there was a decline in the expenditures for food
      2. From the statement that the saturation point was rapidly being approached for first household radios
      3. there is no mention of military expenditures
      4. the people were affluent
      5. the people were not saving their money

      Ans : B

    4. The area, which saw the greatest expenditure of investment funds was
      1. The public sector
      2. Business premises
      3. Housing construction
      4. Agricultural equipment
      5. A field which cannot be determined

      Ans : E

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