CAT Practice Set 1

Economists have long observed that when the price of a good rises, consumers often reduce their purchase of it — yet for a small class of goods called Veblen goods, demand rises as price rises, because the high price itself confers status on the buyer. This apparent paradox does not violate the law of demand; rather, it operates because the good being purchased is not merely the physical item but also the prestige attached to its price. Which of the following can be inferred from the passage?

1. A.Veblen goods disprove the law of demand entirely
2. B.The demand for Veblen goods is driven by a perceived attribute (prestige) rather than the item alone✓
3. C.Veblen goods are goods that no rational consumer would buy
4. D.The law of demand applies only to luxury goods

Correct answer: B

Urban sociologists have noted that gentrification does not simply displace lower-income residents; it often reconfigures the informal economies — street vendors, small repair shops, neighbourhood networks of mutual aid — that depended on the social fabric of the original neighbourhood. When these informal systems disappear, remaining long-term residents lose access to resources that were never priced in the formal market. The passage primarily suggests that gentrification's effect on long-term residents includes:

1. A.Only the direct loss of housing due to rising rents
2. B.An increase in formal market opportunities for all residents
3. C.The erosion of informal support systems that had non-market value✓
4. D.A rise in street vendor businesses due to new demand

Correct answer: C

Quantum computers exploit superposition, allowing a qubit to represent both 0 and 1 simultaneously, unlike a classical bit. However, this advantage is fragile: interaction with the environment causes decoherence, collapsing the superposition and introducing errors. Building a practical quantum computer therefore requires not just more qubits, but effective error correction to counteract decoherence. According to the passage, why is simply adding more qubits insufficient for a practical quantum computer?

1. A.More qubits increase the cost without any computational benefit
2. B.Decoherence introduces errors that must be corrected regardless of qubit count✓
3. C.Classical bits are always faster than qubits
4. D.Superposition only works with an even number of qubits

Correct answer: B

The Ship of Theseus paradox asks whether an object that has had all its components replaced remains fundamentally the same object. Some philosophers resolve this by distinguishing numerical identity (being literally the same entity) from qualitative identity (having the same properties), arguing that continuity of form and function, not material persistence, is what grounds our everyday notion of identity. The distinction drawn in the passage between numerical and qualitative identity is used to:

1. A.Prove that the Ship of Theseus paradox has no possible resolution
2. B.Argue that material composition is the only criterion for identity
3. C.Suggest that everyday identity judgments rely on continuity rather than material sameness✓
4. D.Show that qualitative identity is irrelevant to philosophical debate

Correct answer: C

A firm operating in a monopolistically competitive market differentiates its product to escape direct price competition, but because entry barriers are low, any economic profit attracts new entrants until profits are competed away in the long run. The firm is left with only normal profit despite retaining some pricing power from differentiation. The passage implies that in the long run, a monopolistically competitive firm:

1. A.Earns sustained economic profit due to product differentiation
2. B.Loses all pricing power to new entrants
3. C.Retains pricing power but not economic profit✓
4. D.Becomes a pure monopoly

Correct answer: C

Arrange the following sentences (1-4) in a logical order to form a coherent paragraph: 1. This, in turn, forces firms to compete more on price than on innovation. 2. When entry barriers in an industry are low, new firms enter quickly whenever incumbents earn above-normal profits. 3. Some economists argue that moderate barriers actually encourage more sustainable innovation than a fully contestable market. 4. The resulting rush of entrants erodes the profit margins that might otherwise fund research and development.

1. A.2-4-1-3✓
2. B.1-2-3-4
3. C.3-1-4-2
4. D.2-1-4-3

Correct answer: A

Remote work initially promised employees greater autonomy and employers lower overhead, but as the practice matured, firms discovered that collaboration and mentorship suffered without in-person interaction. Many organisations have since adopted hybrid models, requiring a few in-office days while preserving flexibility for the rest of the week, attempting to balance the benefits of both arrangements. Which of the following best summarises the passage?

1. A.Remote work is universally superior to office work
2. B.Hybrid models represent an attempt to balance remote work's flexibility with the collaborative benefits of office presence✓
3. C.Firms have abandoned remote work entirely due to mentorship failures
4. D.Employees prefer full-time office work over any flexible arrangement

Correct answer: B

Identify the sentence that does not fit with the rest of the paragraph: 1. Renewable energy adoption has accelerated as solar and wind costs have fallen sharply over the past decade. 2. Grid operators now face the added challenge of balancing intermittent supply with steady demand. 3. Battery storage technology has become a critical complement to renewable generation. 4. Coffee consumption has also risen globally over the same period, driven by younger demographics.

1. A.Sentence 1
2. B.Sentence 2
3. C.Sentence 4✓
4. D.Sentence 3

Correct answer: C

Argument: 'City X should ban plastic bags because a neighbouring city banned them and saw a 20% drop in visible litter within a year.' Which of the following, if true, most weakens this argument?

1. A.City X already has a lower litter rate than the neighbouring city had before its ban
2. B.The neighbouring city simultaneously launched a major public litter-cleanup and enforcement campaign alongside the ban, which could account for the drop✓
3. C.Plastic bags are recyclable in some facilities
4. D.City X's residents support environmental initiatives

Correct answer: B

Choose the grammatically correct sentence:

1. A.Neither of the applicants were qualified for the position
2. B.Neither of the applicants was qualified for the position✓
3. C.Neither of the applicant were qualified for the position
4. D.Neither of the applicants have been qualified for the position

Correct answer: B

A table shows quarterly revenue (in ₹ crore) for two products: Product P1 — Q1: 20, Q2: 25, Q3: 30, Q4: 35; Product P2 — Q1: 15, Q2: 15, Q3: 20, Q4: 20. What is the combined total revenue of P1 and P2 across all four quarters?

1. A.₹170 crore
2. B.₹180 crore✓
3. C.₹190 crore
4. D.₹160 crore

Correct answer: B

A line chart shows a company's profit (₹ lakh) over five years: 2018: 10, 2019: 20, 2020: 15, 2021: 18, 2022: 27. In which year was the year-on-year percentage growth in profit the highest?

1. A.2019✓
2. B.2020
3. C.2021
4. D.2022

Correct answer: A

A pie chart shows the market share of four smartphone brands: A = 40%, B = 25%, C = 20%, D = 15%. If the total market size is 2,00,000 units, how many more units does Brand A sell than Brand C?

1. A.20,000
2. B.30,000
3. C.40,000✓
4. D.50,000

Correct answer: C

Question: What is the smallest of five consecutive integers? Statement I: The average of the five consecutive integers is 20. Statement II: The largest of the five integers is 22. Which statement(s) alone are sufficient to answer the question?

1. A.Only Statement I is sufficient alone
2. B.Only Statement II is sufficient alone
3. C.Each statement alone is sufficient✓
4. D.Both statements together are needed; neither alone is sufficient

Correct answer: C

In a round-robin tournament with 8 teams, each team plays every other team exactly once. How many total matches are played?

1. A.24
2. B.28✓
3. C.32
4. D.56

Correct answer: B

Six friends P, Q, R, S, T, U are to be seated in a row. P is immediately to the left of Q. R is at one of the ends. S is second from the left. T is immediately to the right of S. Which of the following could be the correct order from left to right?

1. A.R, S, T, P, Q, U✓
2. B.S, R, T, P, Q, U
3. C.R, S, P, Q, T, U
4. D.U, T, S, P, Q, R

Correct answer: A

A committee of 4 members is to be selected from 6 men and 4 women such that at least 2 women are included. In how many ways can this be done?

1. A.105
2. B.115✓
3. C.120
4. D.100

Correct answer: B

In a class of 50 students, 30 play cricket, 20 play football, and 10 play both sports. How many students play neither sport?

1. A.5
2. B.10✓
3. C.15
4. D.20

Correct answer: B

Five statements are given, of which exactly two are true and three are false: (1) A is taller than B. (2) B is taller than C. (3) A is the tallest. (4) C is the shortest. (5) B is taller than A. Which two statements can be simultaneously true?

1. A.(1) and (3)✓
2. B.(2) and (4)
3. C.(1) and (5)
4. D.(3) and (4)

Correct answer: A

In a network, City A connects directly to City B and City C. City B connects to City D. City C connects to City D. There is no direct connection between B and C. How many distinct paths (without revisiting a city) exist from A to D?

1. A.1
2. B.2✓
3. C.3
4. D.4

Correct answer: B

A shopkeeper buys an article for ₹800 and sells it at a profit of 25%. What is the selling price?

1. A.₹900
2. B.₹950
3. C.₹1000✓
4. D.₹1050

Correct answer: C

If a:b = 3:4 and b:c = 8:9, find a:c.

1. A.2:3✓
2. B.3:4
3. C.1:2
4. D.3:2

Correct answer: A

Two trains, 150 m and 100 m long, run in opposite directions on parallel tracks at speeds of 54 km/h and 36 km/h respectively. How long will they take to cross each other?

1. A.8 seconds
2. B.10 seconds✓
3. C.12 seconds
4. D.15 seconds

Correct answer: B

A can complete a piece of work in 12 days and B can complete it in 18 days. They work together for 4 days, after which A leaves. In how many more days will B alone complete the remaining work?

1. A.6 days
2. B.8 days✓
3. C.9 days
4. D.10 days

Correct answer: B

Find the compound interest on ₹10,000 at 10% per annum for 2 years, compounded annually.

1. A.₹2000
2. B.₹2100✓
3. C.₹2200
4. D.₹1900

Correct answer: B

The sum of the roots of the quadratic equation 2x² − 8x + k = 0 is 4, and the product of the roots is 3. Find the value of k.

1. A.3
2. B.6✓
3. C.8
4. D.12

Correct answer: B

Find the HCF of 48 and 60.

1. A.6
2. B.12✓
3. C.24
4. D.4

Correct answer: B

The sum of the first 20 terms of an arithmetic progression is 650, and the first term is 4. Find the common difference.

1. A.2
2. B.3✓
3. C.4
4. D.5

Correct answer: B

In how many ways can the letters of the word 'MANAGE' be arranged?

1. A.360✓
2. B.720
3. C.180
4. D.120

Correct answer: A

Two dice are rolled together. What is the probability that the sum of the numbers on the two dice is 8?

1. A.5/36✓
2. B.6/36
3. C.4/36
4. D.7/36

Correct answer: A