Passage Three
Questions 21 to 25 are based on the following passage.
In cities with rent control, the city government sets the maximum rent that a landlord can charge for an apartment. Supporters of rent control argue that it protects people who are living in apartments. Their rent cannot increase; therefore, they are not in danger of losing their homes. However, the critics say that after a long time, rent control may have negative effects. Landlords know that they cannot increase their profits. Therefore, they invest in other businesses where they can increase their profits. They do not invest in new buildings which would also be rent-controlled. As a result, new apartments are not built. Many people who need apartments cannot find any. According to the critics, the end result of rent control is a shortage of apartments in the city.
Some theorists argue that the minimum wage law can cause problems in the same way. The federal government sets the minimum that an employer must pay workers. The minimum helps people who generally look for unskilled, low-paying jobs. However, if the minimum is high, employers may hire fewer workers. They will replace workers with machinery. The price, which is the wage that employers must pay, increases. Therefore, other things being equal, the number of workers that employers want decreases. Thus, critics claim, an increase in the minimum wage may cause unemployment. Some poor people may find themselves without jobs instead of with jobs at the minimum wage.
Supporters of the minimum wage say that it helps people keep their dignity. Because of the law, workers cannot sell their services for less than the minimum. Furthermore, employers cannot force workers to accept jobs at unfair wages.
Economic theory predicts the results of economic decisions such as decisions about farm production, rent control, and the minimum wage. The predictions may be correct only if “other things are equal”。 Economists do not agree on some of the predictions. They also do not agree on the value of different decisions. Some economists support a particular decision while others criticize it. Economists do agree, however, that there are no simple answers to economic questions.
21. There is the possibility that setting maximum rent may .
A) cause a shortage of apartments
B) worry those who rent apartments as homes
C) increase the profits of landlords
D) encourage landlords to invest in building apartment
22. We can safely say that rent control .
A) will always benefit those who rent apartments
B) is unnecessary
C) will bring negative effects in the long run
D) is necessary under all circumstances
23. The problem of unemployment will arise .
A) if the minimum wage is set too high B) if the minimum wage is set too low
C) if the workers are unskilled D) if the maximum wage is set
24. The passage tells us .
A) the relationship between supply and demand
B) the possible results of government controls
C) the necessity of government control
D) the urgency of getting rid of government controls
25. Which of the following statements is NOT true?
A) The results of economic decisions can not always be predicted.
B) Minimum wage can not always protect employees.
C) Economic theory can predict the results of economic decisions if other factors are not changing.
D) Economic decisions should not be based on economic theory.
Passage Four
Questions 26 to 30 are based on the following passage.
The age of gilded youth is over. Today’s under-thirties are the first generation for a century who can expect a lower living standard than their parents.
Research into the lifestyle and prospects of people born since 1970 shows that they are likely to face a lifetime of longer working hours, lower job security and higher taxes than the previous generation.
When they leave work late in the evening they will be more likely to return to a small rented flat than to a house of their own. When, eventually, they retire it will be on pensions far lower in real terms than those of their immediate forebears.
The findings are revealed in a study of the way the ageing of Britain’s population is affecting different generations.
Anthea Tinker, professor of social gerontology at King’s College London, who carried out much of the work, said the growth of the proportion of people over 50 had reversed the traditional flow of wealth from older to younger generations.
“Today’s older middle-aged and elderly are becoming the new winners,” she said. “They made relatively small contributions in tax but now make relatively big claims on the welfare system. Generations born in the last three to four decades face the prospect of handing over more than a third of their lifetime’s earnings to care for them”。
The surging number of older people, many living alone, has also increased demand for property and pushed up house prices. While previous generations found it easy to raise a mortgage, today’s under-thirties have to live with their parents or rent. If they can afford to buy a home it is more likely to be a flat than a house.
Laura Lenox-Conyngham, 28, grew up in a large house and her mother did not need to work. Unlike her wealthy parents, she graduated with student and postgraduate loan debts of ￡13, 000. She now earns about ￡20,000 a year, preparing food to be photographed for magazines. Her home is a one-bedroom flat in central London and she sublets the lounge sofa-bed to her brother.
“My father took pity and paid off my student debts,” she said. “But I still have no pension and no chance of buying a property for at least a couple of years—and then it will be something small in a bad area. My only hope is the traditional one of meeting a rich man.”
Tinker’s research reveals Lenox-Conyngham is representative of many young professionals, especially in London, Manchester, Edinburgh and Bristol.
26. By saying “the growth of the proportion of people over 50 had reversed the traditional flow of wealth from older to younger generations” (Lines 23, Para. 5), Anthea Tinker really means that .
A) currently wealth flows from old generation to younger generation
B) traditionally wealth flows from younger generation to old generation
C) with the increasingly big population of over 50, the trend arises that wealth flows from younger generation to old generation
D) with more and more people of over 50, traditions have been reversed
27. Why are today’s older middle-aged and elderly becoming the new winners?
A) Because they made relatively small contributions in tax, but younger generation will possibly hand over more than a third of their lifetime’s earnings for the care of them.
B) Because they contributed a lot in tax and now can claim much on the welfare system.
C) Because they made small contributions, but now can make money easily.
D) Because they outnumber younger generation and enjoy more privileges in the present society.
28. Which factor pushed up house prices?
A) Many young men, who live alone, have increased demand for houses.
B) Many young men need to rent more houses.
C) It is easy to apply for a mortgage for young generation.
D) The number of older people, many of whom live alone, becomes bigger and bigger.
29. In what way does Laura Lenox-Conyngham make her living?
A) By taking photographs for magazines.
B) By marrying a rich man.
C) By subletting the lounge sofa-bed to her brother.
D) By preparing food for photographs for some magazines.
30. We can conclude from the passage that .
A) today’s under-thirties are leading a miserable life in Britain
B) Laura Lenox-Conyngham’s attitude to work and life represents that of many young professionals in Britain
C) life can get harder for under-thirties in Britain
D) elders enjoy extremely high living standard in Britain
