(E) The stagnation of U.S. industry has been caused largely by factors―such as foreign competition―beyond the control of American workers.
2. Freud’s theories of the workings of the mind, while brilliant for their day, were formulated before most of this century’s great advances in neurophysiology and biochemistry. Today, we have a far deeper understanding of the biological components of thought, emotion, and behavior than was dreamed of eighty years ago. It would be foolish to continue parroting Freud’s psychological theories as if these advances had never occurred.
It can be inferred from the passage above that the author would be most likely to favor
(A) the abandonment of most of Freud’s theories
(B) a greater reliance on biological rather than psychological explanations of behavior
(C) a critical reexamination of Freud’s place in the history of psychology
(D) a reexamination of Freud’s theories in the light of contemporary biology
(E) increased financial support for studies in neurophysiology and biochemistry
3. To avoid a hostile takeover attempt, the board of directors of Wellco, Inc., a provider of life and health insurance, planned to take out large loans and use them to purchase a publishing company, a chocolate factory, and a nationwide chain of movie theaters. The directors anticipated that these purchase initially would plunge the corporation deep into debt, rendering it unattractive to those who wanted to take it over, but that steadily rising insurance rates would allow the company to pay off the debt within five years. Meanwhile, revenues from the three new businesses would enable the corporation as a whole to continue to meet its increased operating expenses. Ultimately, according o the directors’ plan, the diversification would strengthen the corporation by varying the sources and schedules of its annual revenues.
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