Trivia: Hardest Quiz On GMAT Reading Comprehension Test!

1. The article states that the likely impact of increased imports from China is an increase in Apple product consumption in the United States. What is the most likely explanation for the author's assertion that supply will drive demand in this case?

The author is incorrect. Demand always drives supply.

People choose what's available. If more apples are available, people will eat more apples.

Consumer preference always drives consumer choice. Consumers prefer Chinese apples over domestic apples.

The demand for apples normally outpaces the supply. A larger apple supply would be a welcome addition to the market.

Apples are a commodity and they are an acceptable substitute for many other commodity fruits. If the price of apple juice drops significantly due to a flood of apples on the market, consumers will gravitate to the lowest cost juice. The cost of the product will drive sales. The desire or preference for the product is secondary.

Explanation

Apples are a commodity and they are an acceptable substitute for many other commodity fruits. If the price of apple juice drops significantly due to a flood of apples on the market, consumers will gravitate to the lowest cost juice. The cost of the product will drive sales. The desire or preference for the product is secondary.

2. Based on information in the passage, which countries would be most likely to be hurt by a sharp increase in apple production in China?

Poland, Hungary and Germany.

Poland, Germany and the United States.

Canada, Japan and Mexico.

Poland, Hungary, Germany and the United States.

Canada, the United States and Mexico.

The passage states identifies Poland, Hungary, Germany and the United States as "key apple juice producing countries." These countries would likely be hurt if China significantly increased its apple production.

Explanation

The passage states identifies Poland, Hungary, Germany and the United States as "key apple juice producing countries." These countries would likely be hurt if China significantly increased its apple production.

3. According to the information in the passage, which statement about demand is true?

Overall, demand for apples is rising.

Overall, demand for apples is decreasing.

Overall, demand for fresh sliced apples is strong and growing, while demand for apple juice is lackluster and decreasing.

Overall, demand for US apples is decreasing, while demand for Chinese apples is increasing.

According to the passage: "Demand for fresh sliced apples remained strong in 2005/06" and "processor demand for juice and cider apples was lackluster."

Explanation

According to the passage: "Demand for fresh sliced apples remained strong in 2005/06" and "processor demand for juice and cider apples was lackluster."

4. According to the passage, why will US apple juice exports decline in 2006/07?

The size of the US apple crop will decline slightly this year.

Domestic demand for apple juice is rising, making less apple juice available for export.

Japan's demand for apple juice has dropped, so growers have reduced their yields.

According to the passage: "China will likely provide increased competition to the US apple juice exporters whose ability to export during 2006/07 will be limited by this year's lower domestic production..." Fewer apples overall means fewer apples will be available for export.

Explanation

According to the passage: "China will likely provide increased competition to the US apple juice exporters whose ability to export during 2006/07 will be limited by this year's lower domestic production..." Fewer apples overall means fewer apples will be available for export.

5. Which of the following would NOT explain why US apple juice exports to Japan are dropping?

Exporters prefer to send their products to Canada and Mexico because these markets are easiest to reach from the U.S.

Canada and Mexico are willing to pay a higher price than Japan for US apple juice.

Canada and Mexico have trade agreements with the United States.

Japan has found a cheaper source of apple juice.

Japan no longer likes apple juice.

Choices A, B, C, and D offer plausible explanations of why exports to Japan will drop. Only Choice E is not reasonable since nothing indicates that juice preferences in Japan have changed significantly.

Explanation

Choices A, B, C, and D offer plausible explanations of why exports to Japan will drop. Only Choice E is not reasonable since nothing indicates that juice preferences in Japan have changed significantly.

6. What would be the likely impact on the United States of an apple crop failure in China?

The United States would benefit. Apple producers would have more access to world.

The United States would benefit. Domestic apple producers could get higher domestic prices for their products.

The United States would be hurt. Increasing crop yield is difficult to do in a single season.

The United States would neither be hurt nor benefit from a crop failure in China.

The passage states that "imports make up 75% of US apple juice supplies." The demand for apple juice in the US outstrips the domestic apple supply. If a crop failure in China occurred, there would likely be a worldwide shortage of apples, which would increase prices in the United States.

Explanation

The passage states that "imports make up 75% of US apple juice supplies." The demand for apple juice in the US outstrips the domestic apple supply. If a crop failure in China occurred, there would likely be a worldwide shortage of apples, which would increase prices in the United States.

7. Based upon the way that apples from China are used in the United States, what can you infer about these apples?

China has an abundance of apples.

China is better at producing apples than any other country.

Apples imported from China are not high quality apples.

The US has enacted laws that govern how Chinese apples can be used.

Apples grown in China have lower nutritional value than domestic apples.

According to the passage, high quality apples garner a good price on the market, but the price of juice apples is at an all time low. Juice apples must not be high-quality apples; otherwise, they would also fetch a good price. Most imported apples are used for juice. Therefore, the imported apples are not high quality apples.

Explanation

According to the passage, high quality apples garner a good price on the market, but the price of juice apples is at an all time low. Juice apples must not be high-quality apples; otherwise, they would also fetch a good price. Most imported apples are used for juice. Therefore, the imported apples are not high quality apples.