Xavier Aptitude Test (XAT) is conducted by Xavier Group of Insitutions for admissions in their Management courses in various disciplines. XAT 2009 had three sections in it namely Verbal and Logical Ability, Data Interpretation and Quantitative Ability and Analytical Reasoning and Decision Making and 104 questions in total.
Directions for question 1 to 2 : Analyse the following passage and provide an appropriate answer for the two questions that follow.
In Hume's eyes productive labour was the greatest asset of a country, and foreign trade was valuable because it enabled a nation to use more and more varied labour than would otherwise be possible. But commerce was of mutual advantage to the nations involved, not a benefit to one and injury to other. "The increase of riches and commerce in any one nation,"
added Hume, "instead of hurting, commonly, promotes the riches and commerce of all its neighbours." "The emulation in rival nations serves ... to keep industry alive in all of them."
1. The importance of foreign trade, in eyes of Hume, was due to that:
1) it allowed the employment of surplus labour in a nation.
2) it allowed the diversion of labour to export oriented industries.
3) it allowed the deeper specialisation of the same labour force.
4) it allowed varied application of labour force in a nation.
5) it allowed application of varied labour force in a nation.
2. As per Hume, free trade between nations was made advantageous by the outcome of:
1) mutual increases in riches and commerce.
2) emulation of industrial activity by different nations.
3) affable promotion of industrial activity among nations.
4) productive employment of labour in different nations.
5) higher wages received by labour in exporting nations.