PT112.S1.Q16 > Question

SECTION 1 · lr

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SECTION 2 · rc

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PASSAGE 4

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SECTION 3 · lr

SECTION 4 · lr

The level and rate of growth of aggregate output are the most significant indicators of the viability of a nation’s economy. Unemployment and inflation rates are also important indicators. Some countries have viable economies even though they do not have very large populations. For example, Switzerland and Austria have viable economies, but only about seven million people. Israel, Ireland, Denmark, and Finland all have viable economies, but less than seven million people.

Having a very large population isn’t required to have a viable economy.

If the size of a country’s population is an indicator of the viability of a nation’s economy, it is not the most significant indicator.

Unsupported. Although having a very large population isn’t required for a viable economy, that doesn’t imply that population size is completely independent of the viability of an economy. Maybe a population of one million, for example, is required for viability.

Unsupported. We don’t have any evidence that every nation with more than seven million people is economically viable.

Strongly supported. We have several examples of countries with populations smaller than seven million that are nonetheless still economically viable.

Unsupported. We are not told what are the most important contributors to the level and rate of growth of aggregate output.

Unsupported. We do not have any evidence that a nation’s population affects aggregate output, unemployment, or inflation rates.

PrepTest 112 - Section 1 - Question 16

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