SSAT Middle Level Reading Practice Test 40

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The free market system puts cooperation above competition, or rather, businesses cooperate first, compete second. A company's primary aim is to grow the market for its product, which it does through advertising. An ad sells two things at the same time: first, it sells the product type, and second, it sells the company's brand. A car ad will first sell driving or "the car", and then it will sell, say Ford's version of the car. The effect of this is that, through advertising, companies are cooperating in order to increase the demand for their type of product, and then they are competing against each other for market share.

One way to increase the market for a product or service is by attacking a competing idea or product. For example, in an advertisement for Ford, a van is seen driving past people waiting at a bus stop, looking miserable, in the rain. The people at the bus stop represent a portion of the potential car buying public; the road is perfectly clear, the bus doesn't come. We know that good vehicles aren't in competition with buses. But, if Ford can weaken the desire for public transport while promoting one of their vans, they are helping the automobile industry as a whole, and they are doing it in a slightlycovertway.

- Bill Morgan for Skyscraper & Pocketbook

1. In their advertisement, Ford makes the "people waiting at a bus stop" look unhappy in order to

  • A. build sympathy for people who do not drive cars.
  • B. show that all bus stops need protection from the rain.
  • C. compare the driving time of a Ford van to a city bus.
  • D. discourage public transportation in an indirect way.
  • E. explain that buses and trains cost too much money.

2. As it is used in the last line, the word "covert" most nearly means

  • A. illegal
  • B. hidden
  • C. public
  • D. common
  • E. showy

3. The author believes that the first goal of a business is to

  • A. maximize profits and minimize expenses.
  • B. cooperate and then merge with other businesses.
  • C. understand fully the details of its industry.
  • D. convince the public that their brand is the best.
  • E. create interest in its products and services.

4. Which of the following questions is answered by information in the passage?

  • A. Why do businesses need to cooperate at times?
  • B. When is the best time to use public transportation?
  • C. How do you place an advertisement for cars?
  • D. What are the advantages and disadvantages of trains?
  • E. Who is responsible for marketing in most businesses?

5. The author's main point in the first paragraph is that

  • A. getting off to a strong start is important because the free market is competitive.
  • B. if businesses do not cooperate with each other, they will all fail.
  • C. businesses first cooperate to promote their product and then compete for business.
  • D. the automobile industry is extremely competitive due to high manufacturing costs.
  • E. demand for a product remains high as long as the supply of the product remains low.