Reading Comprehension Questions

Multiple choice

What does the defense counsel accuse people in high places of doing?

Directions: Answer the question based on the following passage.

Esteemed members of the Jury …. If you want to condemn these twenty men, then do it. I beseech no kindness on behalf of any one of them. They are no better than any other twenty men or women; they are no better than the millions down through the times who have been indicted and convicted in cases like this. And if it is obligatory for my clients to show that America is like all the rest, if it is necessary that my clients shall go to penitentiary to show it, then let them go. They can afford it if you members of the jury can; make no mistake about that.

The State says my clients “dare to disparage the Constitution.” Yet this police officer (who the State says is a fine, right–living person) twice dishonored the federal Constitution while a prosecuting attorney was standing by. They entered Mr. Foster’s home without a search warrant. They overhauled his papers. They found a flag, a red one, which he had the same right to have in his house that you have to keep a green one, or a yellow one, or any other color, and the officer daringly rolled it up and put another flag on the wall, nailed it there. By what right was that done? What about this kind of patriotism that violates the Constitution? Has it come to pass in this country that officers of the law can trample on constitutional rights and then excuse it in a court of justice?

Most of what has been shown to this jury to incite emotions in your souls has not the least bearing on confirming conspiracy in this case. Take Mr. Hepburn’s speech in Aspen. It is devoid of any conspiracy whatsoever.

Whether that speech was a comic story or was serious, I shall spare the efforts of discussing it. But I shall make a point to state that if it was serious it was as gentle as a summer’s spell of rain in contrast with many of the avowals of those who are accountable for working conditions in this country. We have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. Every vicious appeal that could be envisaged by the brain has been used by the dominant and the strong. I reiterate, Mr. Hepburn’s speech was gentle in comparison.

My clients are damned because they say in their platform that, while they vote, they believe the ballot is secondary to education and organization. Counsel proposes that those who get something they did not vote for are sinners, but I guess you the jury know in true light that my clients are right. Most of you have an eight–hour day. Did you get it by any vote you ever cast? No. It came about because workers laid down their tools and said we will no longer work until we get an eight–hour day. That is how they got the twelve–hour day, the ten–hour day, and the eight–hour day–not by voting but by laying down their tools. Then when it was over and the victory won . . . then the politicians, in order to get the labor vote, passed legislation creating an eight–hour day. That is how things changed; victory preceded law . . .

You have been informed that if you acquit these defendants you will be despised because you will endorse everything they believe. But I am not here to defend my clients’ belief. I am here to protect their right to communicate their outlook. I ask you, then; to make your mind up on this case upon the facts as you have heard them, in light of the law as you infer it, in light of the history of our country, whose foundation you and I are ought to guard.

  1. Trying to kill Communist Party members

  2. Advocating violence against labor sympathisers

  3. Lying to the jury

  4. Encouraging the use of harsh punishment against criminals

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct answer is (2). According to lines, we have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. This idea is paraphrased in choice (2). Answer choice (1) is one of the traps. According to the lawyer, people in high places have suggested that labor sympathisers be sent on ship, but that doesn't mean the people in high places have actually sent anyone.  Answer choice (4) is another trap. The people in high places have advocated violence against labour sympathisers, but the labour sympathisers are not necessarily criminals.

Multiple choice

The defense counsel's defense relies mainly on arguing before the jury that _______.

Directions: Answer the question based on the following passage.

Esteemed members of the Jury …. If you want to condemn these twenty men, then do it. I beseech no kindness on behalf of any one of them. They are no better than any other twenty men or women; they are no better than the millions down through the times who have been indicted and convicted in cases like this. And if it is obligatory for my clients to show that America is like all the rest, if it is necessary that my clients shall go to penitentiary to show it, then let them go. They can afford it if you members of the jury can; make no mistake about that.

The State says my clients “dare to disparage the Constitution.” Yet this police officer (who the State says is a fine, right–living person) twice dishonored the federal Constitution while a prosecuting attorney was standing by. They entered Mr. Foster’s home without a search warrant. They overhauled his papers. They found a flag, a red one, which he had the same right to have in his house that you have to keep a green one, or a yellow one, or any other color, and the officer daringly rolled it up and put another flag on the wall, nailed it there. By what right was that done? What about this kind of patriotism that violates the Constitution? Has it come to pass in this country that officers of the law can trample on constitutional rights and then excuse it in a court of justice?

Most of what has been shown to this jury to incite emotions in your souls has not the least bearing on confirming conspiracy in this case. Take Mr. Hepburn’s speech in Aspen. It is devoid of any conspiracy whatsoever.

Whether that speech was a comic story or was serious, I shall spare the efforts of discussing it. But I shall make a point to state that if it was serious it was as gentle as a summer’s spell of rain in contrast with many of the avowals of those who are accountable for working conditions in this country. We have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. Every vicious appeal that could be envisaged by the brain has been used by the dominant and the strong. I reiterate, Mr. Hepburn’s speech was gentle in comparison.

My clients are damned because they say in their platform that, while they vote, they believe the ballot is secondary to education and organization. Counsel proposes that those who get something they did not vote for are sinners, but I guess you the jury know in true light that my clients are right. Most of you have an eight–hour day. Did you get it by any vote you ever cast? No. It came about because workers laid down their tools and said we will no longer work until we get an eight–hour day. That is how they got the twelve–hour day, the ten–hour day, and the eight–hour day–not by voting but by laying down their tools. Then when it was over and the victory won . . . then the politicians, in order to get the labor vote, passed legislation creating an eight–hour day. That is how things changed; victory preceded law . . .

You have been informed that if you acquit these defendants you will be despised because you will endorse everything they believe. But I am not here to defend my clients’ belief. I am here to protect their right to communicate their outlook. I ask you, then; to make your mind up on this case upon the facts as you have heard them, in light of the law as you infer it, in light of the history of our country, whose foundation you and I are ought to guard.

  1. the prosecution is using a double standard

  2. the evidence used by the prosecution is unreliable

  3. the defendants' views are similar to those of the jury

  4. labor unions are guaranteed the right to hold a strike

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Correct answer is (1). The lawyer believes that the prosecution is using a double standard. The second paragraph cites more examples of how the lawyer shows that the prosecution is guilty of doing exactly what it has accused the defendants of doing. In this case, the accused are said to have used violent words and the lawyer is giving examples of violent threats that have been aimed at the defendants. Answer choice (2) is close but the evidence is not unreliable. The lawyer's point is unconstitutional means.

Multiple choice

In passage, the case against Foster would have been dismissed if the judge had interpreted the Constitution in which of the following ways?

Directions: Answer the question based on the following passage.

Esteemed members of the Jury …. If you want to condemn these twenty men, then do it. I beseech no kindness on behalf of any one of them. They are no better than any other twenty men or women; they are no better than the millions down through the times who have been indicted and convicted in cases like this. And if it is obligatory for my clients to show that America is like all the rest, if it is necessary that my clients shall go to penitentiary to show it, then let them go. They can afford it if you members of the jury can; make no mistake about that.

The State says my clients “dare to disparage the Constitution.” Yet this police officer (who the State says is a fine, right–living person) twice dishonored the federal Constitution while a prosecuting attorney was standing by. They entered Mr. Foster’s home without a search warrant. They overhauled his papers. They found a flag, a red one, which he had the same right to have in his house that you have to keep a green one, or a yellow one, or any other color, and the officer daringly rolled it up and put another flag on the wall, nailed it there. By what right was that done? What about this kind of patriotism that violates the Constitution? Has it come to pass in this country that officers of the law can trample on constitutional rights and then excuse it in a court of justice?

Most of what has been shown to this jury to incite emotions in your souls has not the least bearing on confirming conspiracy in this case. Take Mr. Hepburn’s speech in Aspen. It is devoid of any conspiracy whatsoever.

Whether that speech was a comic story or was serious, I shall spare the efforts of discussing it. But I shall make a point to state that if it was serious it was as gentle as a summer’s spell of rain in contrast with many of the avowals of those who are accountable for working conditions in this country. We have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. Every vicious appeal that could be envisaged by the brain has been used by the dominant and the strong. I reiterate, Mr. Hepburn’s speech was gentle in comparison.

My clients are damned because they say in their platform that, while they vote, they believe the ballot is secondary to education and organization. Counsel proposes that those who get something they did not vote for are sinners, but I guess you the jury know in true light that my clients are right. Most of you have an eight–hour day. Did you get it by any vote you ever cast? No. It came about because workers laid down their tools and said we will no longer work until we get an eight–hour day. That is how they got the twelve–hour day, the ten–hour day, and the eight–hour day–not by voting but by laying down their tools. Then when it was over and the victory won . . . then the politicians, in order to get the labor vote, passed legislation creating an eight–hour day. That is how things changed; victory preceded law . . .

You have been informed that if you acquit these defendants you will be despised because you will endorse everything they believe. But I am not here to defend my clients’ belief. I am here to protect their right to communicate their outlook. I ask you, then; to make your mind up on this case upon the facts as you have heard them, in light of the law as you infer it, in light of the history of our country, whose foundation you and I are ought to guard.

  1. Defendants must have their rights read to them when they are arrested.

  2. Giving false evidence in court is a crime.

  3. Evidence gained by illegal means is not acceptable in court.

  4. No one can be tried twice for the same crime.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Correct answer is (3). In the passage, the lawyer stresses an inconsistency or contradiction on the part of the prosecution that it's okay to disregard constitutional rights in order to prosecute someone for violating the Constitution. Answer choice (3) is the answer because Darrow asserts that the evidence against Foster was obtained by violating his constitutional rights. Therefore, if the judge had interpreted the Constitution as answer choice (3) suggests, Foster's trial would have been dismissed. All the other answer choices refer to things that could get a trial dismissed but none of them are mentioned anywhere in the passage.

Multiple choice

The statement,''They can afford it if your members of the jury can'' is most likely meant to imply that _________.

Directions: Answer the question based on the following passage.

Esteemed members of the Jury …. If you want to condemn these twenty men, then do it. I beseech no kindness on behalf of any one of them. They are no better than any other twenty men or women; they are no better than the millions down through the times who have been indicted and convicted in cases like this. And if it is obligatory for my clients to show that America is like all the rest, if it is necessary that my clients shall go to penitentiary to show it, then let them go. They can afford it if you members of the jury can; make no mistake about that.

The State says my clients “dare to disparage the Constitution.” Yet this police officer (who the State says is a fine, right–living person) twice dishonored the federal Constitution while a prosecuting attorney was standing by. They entered Mr. Foster’s home without a search warrant. They overhauled his papers. They found a flag, a red one, which he had the same right to have in his house that you have to keep a green one, or a yellow one, or any other color, and the officer daringly rolled it up and put another flag on the wall, nailed it there. By what right was that done? What about this kind of patriotism that violates the Constitution? Has it come to pass in this country that officers of the law can trample on constitutional rights and then excuse it in a court of justice?

Most of what has been shown to this jury to incite emotions in your souls has not the least bearing on confirming conspiracy in this case. Take Mr. Hepburn’s speech in Aspen. It is devoid of any conspiracy whatsoever.

Whether that speech was a comic story or was serious, I shall spare the efforts of discussing it. But I shall make a point to state that if it was serious it was as gentle as a summer’s spell of rain in contrast with many of the avowals of those who are accountable for working conditions in this country. We have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. Every vicious appeal that could be envisaged by the brain has been used by the dominant and the strong. I reiterate, Mr. Hepburn’s speech was gentle in comparison.

My clients are damned because they say in their platform that, while they vote, they believe the ballot is secondary to education and organization. Counsel proposes that those who get something they did not vote for are sinners, but I guess you the jury know in true light that my clients are right. Most of you have an eight–hour day. Did you get it by any vote you ever cast? No. It came about because workers laid down their tools and said we will no longer work until we get an eight–hour day. That is how they got the twelve–hour day, the ten–hour day, and the eight–hour day–not by voting but by laying down their tools. Then when it was over and the victory won . . . then the politicians, in order to get the labor vote, passed legislation creating an eight–hour day. That is how things changed; victory preceded law . . .

You have been informed that if you acquit these defendants you will be despised because you will endorse everything they believe. But I am not here to defend my clients’ belief. I am here to protect their right to communicate their outlook. I ask you, then; to make your mind up on this case upon the facts as you have heard them, in light of the law as you infer it, in light of the history of our country, whose foundation you and I are ought to guard.

  1. the defendants will not be harmed if sentenced

  2. if the jurors convict the defendants, they will be ruthlessly censured

  3. the defendants do not care whether they are convicted

  4. if the defendants are found guilty, everyone's rights will be threatened

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct answer is (4). After the quoted statement, the lawyer goes on to talk about the abuse of constitutional and personal liberty by people in authority. Keeping in mind that his defendant loves America, one can see that choice (4) is the most patriotic answer. If the jury finds the defendants guilty, it will be saying, in effect, that abuses of constitutional rights are okay. This will threaten everybody's freedom. Lawyer is concerned about constitutional rights in America. Choice (4) is also most consistent with the main idea of the passage. Answer choice (1) is way off base. Whether the defendants will be harmed if convicted is not the issue. Answer choice (2) is wrong; there's nothing in the passage to suggest that the jurors would be criticized if they were to convict the defendants. (In fact, the opposite would probably be true.) Remember, the passage is about constitutional rights and abuses of those rights, not the reputation of the jurors. Answer choice (3) doesn't make any sense. Of course the defendants care whether they are convicted!

Multiple choice

The passage implies that the prosecution had told the jury that any finding that vouches for the innocence of the defendants would be similar to _______.

Directions: Answer the question based on the following passage.

Esteemed members of the Jury …. If you want to condemn these twenty men, then do it. I beseech no kindness on behalf of any one of them. They are no better than any other twenty men or women; they are no better than the millions down through the times who have been indicted and convicted in cases like this. And if it is obligatory for my clients to show that America is like all the rest, if it is necessary that my clients shall go to penitentiary to show it, then let them go. They can afford it if you members of the jury can; make no mistake about that.

The State says my clients “dare to disparage the Constitution.” Yet this police officer (who the State says is a fine, right–living person) twice dishonored the federal Constitution while a prosecuting attorney was standing by. They entered Mr. Foster’s home without a search warrant. They overhauled his papers. They found a flag, a red one, which he had the same right to have in his house that you have to keep a green one, or a yellow one, or any other color, and the officer daringly rolled it up and put another flag on the wall, nailed it there. By what right was that done? What about this kind of patriotism that violates the Constitution? Has it come to pass in this country that officers of the law can trample on constitutional rights and then excuse it in a court of justice?

Most of what has been shown to this jury to incite emotions in your souls has not the least bearing on confirming conspiracy in this case. Take Mr. Hepburn’s speech in Aspen. It is devoid of any conspiracy whatsoever.

Whether that speech was a comic story or was serious, I shall spare the efforts of discussing it. But I shall make a point to state that if it was serious it was as gentle as a summer’s spell of rain in contrast with many of the avowals of those who are accountable for working conditions in this country. We have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. Every vicious appeal that could be envisaged by the brain has been used by the dominant and the strong. I reiterate, Mr. Hepburn’s speech was gentle in comparison.

My clients are damned because they say in their platform that, while they vote, they believe the ballot is secondary to education and organization. Counsel proposes that those who get something they did not vote for are sinners, but I guess you the jury know in true light that my clients are right. Most of you have an eight–hour day. Did you get it by any vote you ever cast? No. It came about because workers laid down their tools and said we will no longer work until we get an eight–hour day. That is how they got the twelve–hour day, the ten–hour day, and the eight–hour day–not by voting but by laying down their tools. Then when it was over and the victory won . . . then the politicians, in order to get the labor vote, passed legislation creating an eight–hour day. That is how things changed; victory preceded law . . .

You have been informed that if you acquit these defendants you will be despised because you will endorse everything they believe. But I am not here to defend my clients’ belief. I am here to protect their right to communicate their outlook. I ask you, then; to make your mind up on this case upon the facts as you have heard them, in light of the law as you infer it, in light of the history of our country, whose foundation you and I are ought to guard.

  1. denying the validity of the Constitution

  2. permitting workers to go on strike

  3. promoting passive resistance

  4. promoting communism

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct answer is (4). According to the line, You have been informed that if you acquit these defendants, you will be despised because you will endorse everything they believe, the jury had been told that if the defendants were to be acquitted, the jury members would be despised for agreeing with the defendants. 

Multiple choice

Defense Counsel's defense hinges on the ability of the jurors to _______.

Directions: Answer the question based on the following passage.

Esteemed members of the Jury …. If you want to condemn these twenty men, then do it. I beseech no kindness on behalf of any one of them. They are no better than any other twenty men or women; they are no better than the millions down through the times who have been indicted and convicted in cases like this. And if it is obligatory for my clients to show that America is like all the rest, if it is necessary that my clients shall go to penitentiary to show it, then let them go. They can afford it if you members of the jury can; make no mistake about that.

The State says my clients “dare to disparage the Constitution.” Yet this police officer (who the State says is a fine, right–living person) twice dishonored the federal Constitution while a prosecuting attorney was standing by. They entered Mr. Foster’s home without a search warrant. They overhauled his papers. They found a flag, a red one, which he had the same right to have in his house that you have to keep a green one, or a yellow one, or any other color, and the officer daringly rolled it up and put another flag on the wall, nailed it there. By what right was that done? What about this kind of patriotism that violates the Constitution? Has it come to pass in this country that officers of the law can trample on constitutional rights and then excuse it in a court of justice?

Most of what has been shown to this jury to incite emotions in your souls has not the least bearing on confirming conspiracy in this case. Take Mr. Hepburn’s speech in Aspen. It is devoid of any conspiracy whatsoever.

Whether that speech was a comic story or was serious, I shall spare the efforts of discussing it. But I shall make a point to state that if it was serious it was as gentle as a summer’s spell of rain in contrast with many of the avowals of those who are accountable for working conditions in this country. We have heard from people of position assert that individuals who carp the actions of those who are getting prosperous should be put in a cement ship with leaden sails and sent out to sea. Every vicious appeal that could be envisaged by the brain has been used by the dominant and the strong. I reiterate, Mr. Hepburn’s speech was gentle in comparison.

My clients are damned because they say in their platform that, while they vote, they believe the ballot is secondary to education and organization. Counsel proposes that those who get something they did not vote for are sinners, but I guess you the jury know in true light that my clients are right. Most of you have an eight–hour day. Did you get it by any vote you ever cast? No. It came about because workers laid down their tools and said we will no longer work until we get an eight–hour day. That is how they got the twelve–hour day, the ten–hour day, and the eight–hour day–not by voting but by laying down their tools. Then when it was over and the victory won . . . then the politicians, in order to get the labor vote, passed legislation creating an eight–hour day. That is how things changed; victory preceded law . . .

You have been informed that if you acquit these defendants you will be despised because you will endorse everything they believe. But I am not here to defend my clients’ belief. I am here to protect their right to communicate their outlook. I ask you, then; to make your mind up on this case upon the facts as you have heard them, in light of the law as you infer it, in light of the history of our country, whose foundation you and I are ought to guard.

  1. understand complicated legal terms and procedures

  2. sympathise with union organisers

  3. comprehend the beliefs of the Communist Labour Party

  4. separate the defendants rights from their views

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct answer is (4). This question asks you to determine what the lawyer is trying to get the jury to go through implication and examples. The accused are said to be a threat to the constitution and the country. The lawyer's summation also points to an inconsistency in the prosecution (second paragraph) to highlight constitutionality as the issue, not communism. All the testimony rely on getting away from what the defendants believe and focus on their right under the Constitution to have this belief.

Multiple choice
  1. merchandising

  2. leagues

  3. sport accessories

  4. famous people

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The passage focuses on how sports clubs use famous players to increase merchandise sales, ticket revenue, and commercial deals, which is the definition of merchandising.

Multiple choice
  1. Family concerns

  2. Succession planning

  3. Culture of family concerns

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The passage discusses family businesses, the challenges of succession, and the cultural aspects of these businesses, making all options relevant.

Multiple choice
  1. 250

  2. 200

  3. Data insufficient

  4. 275

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The text provides future projections for the end of 2008 and 2009 but does not state the current number of branches.

Multiple choice
  1. Damage

  2. Destruction

  3. Both 1 and 2

  4. Desolation

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the context of the passage, the 'protect the assets' approach could be 'devastating' (causing severe damage or destruction) in a modern, competitive environment.

Multiple choice
  1. Smother

  2. Inhibit

  3. Dull

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stultifying means to cause to lose enthusiasm or initiative, or to render useless. Smother, inhibit, and dull all fit this definition in the context of the passage.

Multiple choice
  1. Head of the family

  2. Senior

  3. Leader

  4. Ancestor

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A patriarch is traditionally the male head of a family or tribe. In the context of family businesses, it refers to the senior leader or head of the family.

Multiple choice

Directions: According to the passage, what is the meaning of merchandise?

Real Madrid had great players, but that’s not enough in today’s world. It needed someone who could bring sponsors to their stadium. It needed someone who could charm and entertain the spectators with his skills on the field. It needed David Beckham and didn’t hesitate to pay a huge price for him. Real Madrid’s revenues from club merchandise (Shirts, Caps et al) jumped 67 per cent in Beckham’s first season alone. Suddenly, Real Madrid started earning more from ticket sales, television deals and other promotional activities. Its overall commercial income, which includes money deals from sponsors like Adidas, Pepsi et al now stands at pounds 80 million a year. When Beckham was with Manchester United, it was the richest club; today it’s Real Madrid. This is the “Beckham Effect” and marketers & merchandisers are loving it.

Yao Ming, the very popular Chinese basketball player, was purchased by an American basketball club. The reason? They had no reach or influence in the Asian market and Ming could help them get it, for soon after Ming’s transfer to NBA (National Basketball Association of America) opened merchandise stores all over Asia. Looking at NBA’s success, Seattle Mariners purchased Japanese National Baseball player Ichiro. Tourist flow from Japan has significantly increased to Seattle since then. Not to mention the fact that Ichiro merchandise happens to be one of the top selling merchandise in the league.
  1. Capital goods

  2. FMCG goods

  3. Accessories

  4. White goods

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the context of the passage, merchandise refers to the products sold by the clubs, such as shirts and caps. Accessories is the closest category among the choices.

Multiple choice
  1. Forecaster

  2. Conjecture

  3. Surmise

  4. Professor

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A prognosticator is someone who makes predictions about the future. Forecaster is a direct synonym.

Multiple choice

Which of the following inferences can be drawn from the content of the passage?

Directions: Answer the given question based on the following passage:

The productivity figures represent the number of machines per year produced at the plant in an average year during the late 1990s divided by the total manpower associated with that plant including both direct and indirect labour. All design staff and all sales and service staff are excluded. All managerial and supervisory staff are included. It might be expected that production volumes per man of the smaller type should be expected to be about double that of the medium type in a plant of equal productivity, but this ratio is a crude estimate and should be applied cautiously. If we accept this crude estimate for the appropriate correction factor, then the range between the maximum of 2 (smaller machines) and the minimum of 0.15 (medium machines) indicates a corrected ratio between the maximum and minimum productivity levels.

The figures for Taiwan which relate to standard machines are 2.6 (medium machines) and 5 (smaller machines) respectively. In the latter case, a high proportion of components are bought in. If, once again, we use the crude correction factor of 2 for machine size, then the ratio between the lowest Taiwanese score and the highest Indian score is a factor. This ratio should be compared to the corresponding ratio in wage rates; a comparison between the hourly rate paid to qualified machinists in the two countries suggests a wage ratio of about 6:1 for Taiwan relative to India at current exchange rates.

Now another aspect of the complete scenario: imports.

Today the import duty on a complete machine is 30% for all practical purpose, whereas the import duty on raw materials and components ranges from 35.85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% – 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% – 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%–7% prevailing in advanced countries.

The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares.

The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.

It is to be noted that India is at least 6500 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6500 km away?

Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding. It is therefore high time that the government gives the due attention to this industry which has a good potential.

  1. To levy heavy custom duty on the machine tool industry is quite necessary for its upliftment.

  2. Banks in other countries are running in loss owing to a low interest rate.

  3. The Government of India was not considerate to the difficulties faced by the machine tool industry.

  4. The Government of India has duly recognized the role of the machine tool industry.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Correct answer is (3). Option (1) is incorrect as the passage lays emphasis on the fact that levying heavy custom duty is not necessary. Option (2) is incorrect because only indication we have from the passage is about loans provided by foreign banks at low rates of interest, not the effect of it on their performance. One can also reject option (4) as it is in complete contrast to the theme of passage and this is what the author wishes for. The correct answer is option (3) because the passage brings to light the Govt's apathy towards the machine tool industry and calls upon it to help improve its present state of affairs.