CAT Model Paper 7 Questions and Answers with Explanation Part 5

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Q: 29. Due to increase in radius, the surface area of a sphere increased by . By what percentage will the volume increase?

(A)

(B)

(C)

(D) Cannot be determined

Ans: C

Solution:

Surface area and volume are square and cube function of radius respectively. We can ignore co-efficient and they are constants.

If we take the original value of radius as 10, then surface area and volume are respectively.

New value of surface area is coming as 169. So, new value of radius

New value of volume

So, percentage increase in volume .

Q: 30. In the figure given below (not drawn to scale), PQRSTUV is a Heptagon symmetric about a line perpendicular to PV and passing through point S. Internal angle R is . Internal angles Q, S, U, V, P are all . If the area of this symmetric heptagon is cm and then find the length PV

Q 30 Image of Find the length PV

Q 30 Image of Find the Length PV

(A) 40cm

(B) 32cm

(C)

(D) None of these

Ans: A

Solution:

Extending QR, SR, ST, UT we will find three equilateral triangles as below.

Q 30 Image of Three Equilateral Triangles

Q 30 Image of Three Equilateral Triangles

The area of given heptagon

, where x is the side of the triangle ABR.

Solving,

Now,

Start Passage

Read the passage given below and answer the questions that follow.

International agencies are warning of high food prices on a global scale in 2013 if urgent action is not taken. But our government shows little concern. The president’s address to parliament had only a cursory mention of inflation. “Inflation is easing gradually, but is still a problem,” he said. Still a problem? Surely the suffering of people from the relentless price rise inflicted on them by the flawed policies of the United Progressive Alliance deserves more recognition and redress. Perversely, the government is intensifying the very policies which cause price rise.

Even the World Bank, whose neoliberal policy impositions are responsible to a great extent for global food inflation, has warned that “high and volatile food prices are becoming the new normal.” The FAO warns that “despite decline in international food prices in the latter quarter of 2012, they remain close to all-time highs. Stocks of key cereals have tightened.” Among the reasons are the diversion of land from food grains production, speculative trade, and low public investment in agriculture and depleted stocks. This critique is as valid for India as it is for the more developed countries.

While the severe drought in the United States, Russia, the Ukraine and elsewhere is also cited as a reason for a likely fall in the production of wheat and a consequent increase in food prices, the FAO has warned that the continuing diversion of land to produce crops for the bio-fuel industry in the U.S., Europe and the growing trend of companies to buy land in developing countries like Africa for growing such crops, will lead to “increasing hunger worldwide.” By subsidizing corn production for bio-fuels, the U.S. pulls out corn from food supply, raising prices. Cars and fuel it would seem are more important than people and food.

Food shortages are also ideal scenarios for rampant speculation. Speculation on futures trade in food commodities was one of the crucial causes for international prices skyrocketing in 2008. The impact was disastrous for import dependent countries. In the aftermath of the ruination of millions of families across the world, the G20 countries, including India, had resolved to take remedial measures. In 2010 in the U.S., the “Wall Street Reform and Consumer Protection Act” suggested a set of regulations to curb speculation. To implement the law, the Commodities Futures Trade Commission in the U.S. imposed “position limits” on the proportion of the market that could be held by any one institution so as to curb the capacity to manipulate prices. Even though the limit was as high as a quarter of the market, it was challenged in court by financial market associations.

AU.S. district federal court recently ruled that no such limitations can be imposed, holding that the CFTC has been unable to prove any link between speculation in food commodities and high prices! The CFTC has decided to appeal against this and it will be interesting to see the arguments it puts forward to establish the linkages. Perhaps home-grown loyalists to the U.S. views can take a few lessons from even the limited interventions of the CFTC. But, in any case, the regulations have been put on hold. In the European Union, the regulation regime, which was to be implemented by the end of 2012, has also been postponed.

The speculators, in the meanwhile, have been back in business. Barclays Bank has admitted that it made a profit of million and Goldman Sachs made up to million in 2012 from speculation in food including wheat and maize. Glencore, one of the biggest companies in the business, was pretty clear of its priorities. “The U.S. drought is good for Glencore” said its Trade Wing chief, meaning thereby that its billion pre-tax profits could be further augmented by speculation on the shortages created by the drought. The recent UNCTAD report linking speculative capital with the price rise in food stated that “over billion is traded in food commodities, which is times the physical production of the actual commodity.” The crux of the issue is that high speculation in futures markets pushes up the prices of the commodity being traded. That is why there is a rising global demand prohibition of futures trade in essential commodities.

Q: 31. The question ‘still a problem’ implies that the author

(A) Believes inflation is a long term problem.

(B) Believes that the Government is not taking inflation as seriously as it should.

(C) Thinks those international food shortages are responsible for inflation.

(D) The United Progressive Alliance has done good work but needs to do more

Ans: B

Solution:

Refer to the 1st paragraph where the author says “But our government shows little concern”. The author exclaims ‘still a problem’ in an almost indignant tone. Following this he goes on to say that inflation “surely deserves more attention” by the UPA. Hence option 2 is the answer which says that the author believes that for the government inflation is merely just another problem to mention in the passing in its address to the nation.

Q: 32. The author’s feeling that the US government puts cars and fuel before people is caused by

(A) The US government subsidizing corn production for bio-fuels.

(B) The US allowing rampant speculation in food commodities.

(C) The US encouraging companies to buy land in Africa.

(D) Its apathy towards food inflation.

Ans: D

Solution:

Refer to the lines “By subsidizing corn production for bio-fuels, the U.S. pulls out corn from food supply, raising prices. Cars and fuel it would seem are more important than people and food” in paragraph 3. Clearly the answer is A.

Q: 33. The author believes high food prices are caused by

(A) Diversion of land for non-agricultural purposes.

(B) Speculative trade.

(C) Low public investment in agriculture.

(D) All of the above

Ans: D

Solution:

Refer to the lines ―Among the reasons are the diversion of land from food grains production, speculative trade, and low public investment in agriculture and depleted stocks” in paragraph B. Clearly the answer is D.

Q: 34. What does the CFTC need to do to win its appeal against the ruling of the district federal court?

(A) Show that the controls on speculation are limited and reasonable.

(B) Cite as an example the Regulatory regime in Europe.

(C) Establish a cause-effect relationship between speculation and high food prices.

(D) Explain that such regulation is a temporary measure and that it would be removed once prices come down.

Ans: C

Solution:

Refer to paragraph 5, lines “CFTC has been unable to prove any link between speculation in food commodities and high prices! The CFTC has decided to appeal against this and it will be interesting to see the arguments it puts forward to establish the linkage” hence we can conclude that CFTC will have to find the missing link to overcome the ruling of the court.

End Passage

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