Indian Civil Services Preliminary Exam 2012- CSAT Paper-Part 3
Passage – 3
The need for Competition Law becomes more
evident when foreign direct investment (FDI) is liberalised. The impact of FDI
is not always pro-competitive. Very often FDI takes the forms of a foreign
corporation acquiring a domestic enterprise or establishing a joint venture
with one. By making such an acquisition the foreign investor may substantially
lessen competition and gain a dominant position in the relevant market, thus
charging higher prices. Another scenario is where the affiliates of two
separate multinational companies (MNCs) have been established in competition
with one another in a particular
developing economy, following the liberalisation of FDI. Subsequently, the
parent companies overseas merge. With the affiliates no longer emaining
independent, competition in the host country may be virtually eliminated and
the prices of the products may be artificially inflated. Most of these adverse
consequences of ergers and acquisitions by MNCs can be avoided if an effective
competition law is in place. Also, an economy that has implemented an effective
competition law is in a better position to attract FDI than one that has not.
This is not just
because most MNCs are expected to be accustomed to the operation of such a law
in their home countries and know how to deal with such concerns and know how to
deal with such concerns but also that MNCs expect competition authorities to
ensure a level playing field between domestic and foreign firms.
39. With reference
to the passage, consider the following statements:
1. It is desirable
that the impact of Foreign Direct Investment should be pro-competitive
2. The entry of
foreign investors invariably leads to the inflated prices in domestic
markets.
Which of the
statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor
2
Answer: a
40. According to
the passage, how does a foreign investor dominate the relevant domestic market?
1. Multinational
companies get accustomed to domestic laws.
2. Foreign
companies establish joint ventures with domestic companies.
3. Affiliates in a
particular market/sector lose their independence as their parent companies
overseas merge.
4. Foreign
companies lower the cost of their products as compared to that of products of
domestic companies.
Which of the
statements given above are correct?
(a) 1 and 2
only
(b) 2 and 3
only
(c) 1, 2 and 3
only
(d) 1, 2, 3 and
4
Answer: b
41. What is the
inference from this passage?
(a) Foreign
investors and multinational companies always dominate the domestic market.
(b) It is not in
the best interests of the domestic economy to allow mergers of companies.
(c) With
competition law, it is easy to ensure a level playing field between domestic
and foreign firms.
(d) For countries
with open economy, Foreign Direct Investment is essential for growth.
Answer: c
42. Examine the
following statements:
1. I watch TV only
if I am bored.
2. I am never bored
when I have my brother’s company.
3. Whenever I go to
the theater I take my brother along.
Which one of the
following conclusions is valid in the context of the above statements?
(a) If I am bored,
I watch TV.
(b) If I am bored,
I seek my brother’s company.
(c) If I am not
with my brother, then I watch TV.
(d) If I am not
bored, I do not watch TV.
Answer: d
43. Only six roads
A, B, C, P, Q and R connect a military camp to the rest of the country. Only
one out of A, P and R is open at any one time. If B is closed, so is Q. Only
one of A and B is open during storms. P is closed during floods. In this
context, which one of the following statements is correct?
(a) Under normal
conditions only three roads are open
(b) During storms
at least one road is open.
(c) During floods
only three roads are open.
(d) During
calamities all roads are closed.
Answer: b
44. Examine the
following statements:
1. None but
students are members of the club.
2. Some members of
the club are married persons.
3. All married
persons are invited for dance.
Which one of the
following conclusions can be drawn from the above statements?
(a) All students
are invited for dance.
(b) All married
students of the club are invited for dance.
(c) All members of
the club are married persons.
(d) None of the
above conclusions can be drawn.
Answer: b
45. Four political
parties W, X, Y and Z decided to set up a joint candidate for the coming
parliamentary elections. The formula agreed by them was the acceptance of a
candidate by most of the parties. Four aspiring candidates, A, B, C and D
approached the parties for their tickets.
A was acceptable to
W but not to Z.
B was acceptable to
Y but not to X.
C was acceptable to
W and Y.
D was acceptable to
W and X.
When candidate B
was preferred by W and Z, candidate C was preferred by X and Z, and candidate A
was acceptable to X but not to Y; who got the ticket?
(a) A
(b) B
(c) C
(d) D
Answer: c
46. Consider the
following statements:
1. All X-brand cars
parked here are white.
2. Some of them
have radial tyres.
3. All X-brand cars
manufactured after 1986 have radial tyres.
4. All cars are not
X-brand.
Which one of the
following conclusions can be drawn from the above statements?
(a) Only white cars
are parked here.
(b) Some white
X-brand cars with radial tyres are parked here.
(c) Cars other than
X-brand cannot have radial typres.
(d) Most of than
X-brand cannot have radial tyres.
Answer: b
47. Consider the
following statement:
The Third World
War, if it ever starts, will end very quickly with the possible end of
civilization. It is only the misuse of nuclear power which will trigger it.
Based on the above
statement, which one of the following inferences is correct?
(a) Nuclear power
will be used in the Third World War.
(b) There will be
no civilization left after the Third World War.
(c) The growth of
nuclear power will destroy civilization in the long run.
(d) The Third World
War will not take place.
Answer: a
48. The elements of
the problem figures given below are changing with a certain rule as we observe
them from left to right:
 |
 |
 |
 |
According to this
rule, which of the following would be the next figure if the changes were
continued with the same rule?
(a)  |
(b)
(c)  |
(d)
Answer: d
49. Consider the
following information regarding the performance of a class of 1000 students in
four different tests:
|
Tests
|
I
|
II
|
III
|
IV
|
|
Average Marks
|
60
|
60
|
70
|
80
|
|
|
30
|
45
|
20
|
0
|
|
to
|
to
|
to
|
to
|
|
|
90
|
75
|
100
|
100
|
If a student scores 74 marks in each of the
four tests, in which one of the following tests is her performance the best
comparatively?
(a) Test I
(b) Test II
(c) Test III
(d) Test IV
Answer: B
50. Six squares are
colored, front and back, red (R), blue (B), yellow (Y), green (G), white (W)
and orange (O) and are hinged together as shown in the figure given below. If
they are folded to form a cube, what would be the face opposite the white face?
Figure
Answer: c
51. In the areas covered under the Panchayat
(Extension to 1 Which of the statements
given above is/are correct?
In the above figure, circle P represents
hardworking people, circle Q represents intelligent people, circle R represents
truthful people, and circle S represents honest people. Which region represents
the people who are intelligent, honest and truthful but not hardworking?
Figure
Answer: a
52. Three views of
a cube following a particular motion are given below :
Figure
Answer: a
53. Figure
Answer: d
54. Consider the
following statements:
1. All artists are
whimsical.
2. Some artists are
drug addicts.
3. Frustrated
people are prone to become drug addicts.
From the above three statements it may be
concluded that
(a) Artists are
frustrated.
(b) Some drug addicts are whimsical.
(c) All frustrated
people are drug addicts.
(d) Whimsical
people are generally frustrated.
Answer: b
55. Examine the
following statements:
1. Either A and B
are of the same age of A is older that B.
2. Either C and D
are the same age of D is older than C.
3. B is older than
C.
Which one of the following conclusions can be
drawn from the above statements ?
(a) A is older than
B
(b) B and D are of
the same age
(c) D is older than
C
(d) A is older than
C
Answer: d
56. Examine the following
statements:
1. Only those who
have a pair of binoculars can become the members of the bird watcher’s club.
2. Some members of
the birdwatcher’s club have cameras.
3. Those members
who have cameras can take part in photocontents.
Which of the following conclusions can be
drawn from the above statements?
(a) All those who
have a pair of binoculars are members of the birdwatcher’s club.
(b) All members of
the birdwatcher’s club have a pair of binoculars.
(c) All those who
take part in photo contests are members of the birdwatcher’s club.
(d) No conclusion
can be drawn.
Answer: b
57. During the last
summer vacation, Ankit went to a summer camp where he took part in hiking,
swimming and boating. This summer, he is looking forward to a music camp where
he hopes to sing, dance and learn to play the guitar. Based on the above
information, four conclusions as given below, have been made. Which one of
these logically follows from the information given above?
(a) Ankik’s parents
want him to play the guitar.
(b) Ankit prefers music to outdoor activities.
(c) Ankit goes to
some type of camp every summer.
(d) Ankit likes to
sing and dance.
Answer: d
58. Three persons
A, B and C wore shirts of black, blue and orange colors (not necessarily in
that order) and pants of green, yellow and orange colors (not necessarily in
that order). No person wore shirt and pants of the same color. Further, it is
given that
1. A did not wear
shirt of black color.
2. B did not wear
shirt of blue color.
3. C did not wear
shirt of orange color.
4. A did not wear
pants of green color.
5. B wore pants of
orange color.
What were the colors of the pants and shirt
worn by c, respectively?
(a) Orange
(b) Green and blue
(c) Yellow and blue
(d) Yellow and
black
Answer: b
59. Ten new TV
shows started in January — 5 sitcoms, 3 drama and 2 news magazines. By April,
only seven of the new shows were still on, five of them being sitcoms. Based on
the above information, four conclusions, as given below, have been made. Which
one of these logically follows from the information given above?
(a) Only one news
magazine show is still on.
(b) Only one of the
drama sows is still on.
(c) At least one
discontinued show was a drama.
(d) Viewers prefer
sitcoms over drama.
Answer: c
60. Read the
passage given below and the two statements that follow (given on the basis of
the passage):
Four men are waiting at Delhi
1. The
Christian-businessman speaks Gujarati.
2. The
Gujarati-speaking doctor is a Muslim.
Which of the above statements is/are correct
conclusion/conclusions?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: c
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