1). The trade union declared a strike. 2). Unemployment touched 20 per cent. 3). The finance minister put a cap of $ 2000 a month on cash withdrawals. 4). The Argentines withdrew 2.3$ billion from their bank accounts.
Answer: D 43 and 21 form a logical pairs. 3 follows 4 as the consequences (cap of withdrawals) follows the action ($ 2.3 withdrawal); and the same logic applies to 1 following 2.
Q. No. 2:
1). Behaviour is just the evidence for mind, not its very nature. 2). The view that a mind can be reduced to patterns in behaviour is a hypothesis long abandoned. 3). Thus you can act as if you are in pain and not really be in pain. 4). The turning test, one may say, is seriously flawed.
Answer: C 42 and 13 form a logical pairs. 2 state the hypothesis named in 4. 'Thus' of 3 makes it follows 1.
Q. No. 3:
1). The impetus for change in cargo handling, after years of operational inefficiency has come from new private sector facilitators. 2). Other ports, both major and minor, have spurred into action. 3). And the government agrees this is having a cascading effect on the functioning of other ports. 4). In terms of cargo handling efficiency, some of India's ports have lately undergone a sea change.
Answer: B 4 has to be starting statement as it introduces the topic. 13 forms a mandatory pair as 'this' of 3 indicates the 'new private sector ... of 1'.
Q. No. 4:
1). The unfolding Enron scandal brings new meaning to two favorite American sayings: 'What goes around comes around' and 'People in glass houses should not throw stones'. 2). Countries were told to follow the American model, use American auditing firms, bring in American entrepreneurs to teach them how to run their companies. 3). Remember the East Asian crisis, when the US treasury and its IMF allies blamed that regions problems on crony capitalism, lack of transparency and poor corporate governance. 4). Never mind that under the leadership of their own entrepreneurs, East Asia grow faster than any other region over the previous three decades.
Answer: C The paragraph most appropriately begins with the question in '3'.
Q. No. 5:
1) I think even more urgent than privatizing existing state-owned firms is to allow the entry of private firms into sectors earlier reserved for the state. 2). Indian thinking has traditionally been encumbered by a zero-sum view of the economy. 3). In reality, economic life is full of complementarities. 4). A government that facilitated private business was assumed to be working against the interest of the workers and the public sector.
Answer: D The 'zero-sum' of 2 is explained in 4. Thus 4 follows 2. The 'reality' mentioned in 3 must follow the assumption in 4.
Q. No. 6:
1). Risk-stemming from fluctuations in exchange rate loans hover constantly on the horizon of foreign investment. 2). In view of the higher risk, a firm contemplating foreign investment would naturally expect a higher rate of return. 3). A multinational company may be accused of 'profiteering' even when it may simply be following the sound financial practice of asking for a higher rate of return commensurate with risks characterizing the project. 4). In addition, a foreign investment is subject to discriminatory treatment and selection control in various forms.
Answer: A 1 introduces the topic risk of foreign investment and 4 continues by explaining further risks, 3 must follow 2 as it illustrates the statement 3.