The following questions illustrate the range of the test in terms of the abilities measured, the disciplines covered,

and the difficulty of the questions posed. They should not, however, be considered representative of the entire
scope of the test in either content or difficulty. An answer key follows the questions.

1. In marketing research, a firm might consider using secondary data over primary data because
(A) secondary data usually cost less
(B) secondary data are usually more accurate
(C) primary data are usually non specific
(D) primary data are likely to be outdated

2. In organizational decision making, managers are able to exercise the greatest degree of discretion in the
(A) enforcement of internal policies
(B) settlement of legal disputes
(C) restructuring of outstanding loans
(D) compliance with federal regulations

3. The term “net working capital” refers to

(A) inventories, receivables, and current notes and investments
(B) assets divided by liabilities
(C) current assets less short-term liabilities
(D) net assets left over after subtracting cost of goods sold

Questions 4-5 are based on the following information.

Dreamland Pillow Company sells the “Old Softy” model for $20 each. One pillow requires two pounds of raw
material and one hour of direct labor to manufacture.

Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are
$2,000 per month and Dreamland rents its factory on a five-year lease for $4,000 per month. All costs are
considered costs of production.

4. How many pillows must Dreamland produce and sell each month to earn a monthly gross profit of $1,000?
(A) 300
(B) 350
(C) 600
(D) 700

5. Another firm has offered to produce “Old Softy” pillows and sell them to Dreamland for $12 each. Dreamland
cannot avoid the factory lease payments, but can avoid all labor costs if it does not produce these pillows. Under
these conditions, how many “Old Softy” pillows must Dreamland sell to earn monthly gross profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875
6. Which of the following statements about the tort of negligence is true?
(A) It cannot be used as a basis for liability for defective products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-law duty.

7. Which of the following statements about a systems flowchart is true?

(A) It is used in systems design to define and describe each piece of data.
(B) It is a method of writing programs using only three basic constructs: sequence, selection,
and repetition.
(C) It documents the sequence of processing steps that take place in an information system.
(D) It documents the logical design of an information system.

8. On May 31, Company O’s general ledger shows a cash balance of $5,123. The May 31 bank statement shows a
balance of $4,905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does.
2. A customer’s $40 insufficient funds check has been returned with the bank statement.
3. Outstanding checks of $10, $15, and $100 are identified on May

What is the correct cash balance on May 31?

(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204

9. Within the context of the capital asset pricing model (CAPM), the risk measure known as beta is often computed
by regressing the return of the company’s stock against the
(A) return on the company’s bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index

10. A project consists of 150 jobs. The expected completion time for each job is given in days. The project has three
critical paths with two jobs in common, J and K. In order to finish the project one day early, the completion time
should be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K
11. The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10 percent, and the
growth rate of the world economy begins to escalate. How will the simultaneous occurrence of these events affect
the equilibrium price and quantity in the world petroleum market?
(A) Price will increase, but quantity will remain unchanged.
(B) Price will increase, but quantity is indeterminate.
(C) Quantity will increase, but price is indeterminate.
(D) Both price and quantity will increase.

12. Which of the following would most likely occur as a result of the United States government’s imposing tariffs
on foreign steel imports?
(A) The price of steel produced in the United States would decrease.
(B) The price of imported steel in the United States would decrease.
(C) Employment in the United States steel industry would increase.
(D) Government tax revenue would fall.

13. In an economy the unemployment rate is 10 percent and the inflation rate is 1 percent. An appropriate fiscal
policy in this phase of the business cycle would be to
(A) increase government spending
(B) increase income taxes
(C) decrease transfer payments
(D) decrease the money supply

14. Which of the following is an appropriate Federal Reserve action to stimulate the United States economy?
(A) Selling government bonds on the openmarket
(B) Increasing the discount rate
(C) Reducing the reserve requirement
(D) Cutting taxes

15. If the spread between the spot and forward exchange rates of two currencies equals the interest rate
difference between the two countries, this phenomenon is referred to as
(A) purchasing-power equality
(B) commodity arbitrage
(C) currency hedging
(D) interest-rate parity

16. A firm that would like to know whether it has enough cash to meet its bills would be most likely to use which
category of financial ratio?
(A) Liquidity
(B) Leverage
(C) Efficiency
(D) Profitability

17. In a period of rising prices, which inventory valuation method would generally yield both the lowest ending
inventory value and the lowest net income figure?
(A) First in, first out (FIFO)
(B) Last in, first out (LIFO)
(C) Weighted average
(D) Standard cost
18. In the statement of cash flows, the section for cash flows from operating activities will include which of the
following?
(A) Dividends paid
(B) Issuance of common stock
(C) A decrease in accounts payable
(D) Purchase of a building financed entirely by amortgage

19.
Net income $100,000
Depreciation expense $10,000
Net increase in accounts receivable $5,000
Net increase in accounts payable $3,000

On the basis of the information provided in the table above for a corporation, the corporation’s net cash flow from
operating activities for the current year is
(A) $98,000
(B) $102,000
(C) $108,000
(D) $118,000

20. All of the following are true regarding a seller’s rights to reduce legal liability in the sale of nonconsumer goods
EXCEPT:
(A) The seller can disclaim consequential damages if it is done clearly and conspicuously.
(B) The seller can limit the remedy available to the buyer if he or she does so clearly and fairly.
(C) The seller can place reasonable conditions on the warranty coverage and a shorter time
limit of warranty coverage.
(D) The seller can disclaim all implied warranties by simply stating that there are no implied
warranties.

21. Green desires to form a new company to manufacture lawn mowers. Green is concerned about having his
personal assets exposed to liability for the new company’s contracts and torts. Furthermore, he wants to retain
control over the company’s operations and growth for the next few years. He will need an infusion of equity
capital to begin operations. He hopes to take the company public in about five years if it is advantageous to do so
at the time. Which of the following types of business associations would be best for Green’s new company?
(A) Corporation
(B) General partnership
(C) Limited partnership
(D) Member-managed limited-liability company

22. A small number of people with complementary skills who are committed to a common purpose, a set of
performance goals, and an approach for which they hold themselves mutually accountable is referred to as a
(A) committee
(B) task force
(C) group
(D) team
23. A department manager telephoned two managers in other departments to discuss a cost savings idea that
would benefit their departments as well as her own. Which of the following most accurately defines the
communication channel that the manager was using?
(A) Upward
(B) Lateral
(C) Downward
(D) Hierarchical

24. Based on his scientific management theory, Frederick Taylor developed what pay principle?
(A) Hourly pay
(B) Incentive pay
(C) Profit sharing
(D) Monthly salary with bonus

25. When a domestic firm permits a foreign company to manufacture and sell its product in exchange for a fee or
royalty, the process is termed
(A) importing
(B) exporting
(C) licensing
(D) countertrading

26. An information system that enables all business departments in the same firm to share relevant information
and data is called
(A) an enterprise resource planning (ERP) system
(B) a material requirements planning (MRP) system
(C) a decision support system (DSS)
(D) a point-of-sale (POS) system

27. The central processing unit (CPU) in a personal computer contains the
(A) control unit and primary memory
(B) control unit and arithmetic/logic unit
(C) arithmetic/logic unit and bus
(D) arithmetic/logic unit only

28. Web 2.0 is best represented by which of the following phenomena?

(A) Social networking sites
(B) Word processing
(C) Internet browsers
(D) Text messaging

29. Family branding refers to a group of

(A) similar brands of products from different makers
(B) different brands of products from different makers within the same industry
(C) different products marketed under a single brand name
(D) similar products sold by small, family-owned firms
30. Saint Martin Hospital boasts one of the world’s leading medical imaging programs. Its radiology department
specializes in the early detection of particularly serious forms of stomach, intestinal, and colon cancer. The hospital
plans to invest in a new system of digital medical imaging and image transmission technologies that will enable its
radiologists to view and evaluate intestinal scan results from anywhere in the world.
With this investment, the hospital is attempting to overcome which of the constraints of services marketing?
(A) Inventory
(B) Intangibility
(C) Inconsistency
(D) Inseparability

31. In a large firm, the pool of applicants for the positions of sales manager and sales associate consists of three
men and three women. If each candidate has an equal chance of being selected, what is the probability that both
positions will be filled by men?
(A) 0.20
(B) 0.25
(C) 0.33
(D) 0.50

Questions 32 - 34 refer to the information below.

Priceless Treasures is an antique jewelry retailer. Priceless Treasures’ owner, Sally Thornton, wishes to replace the
printed catalog with an online catalog.

Ms. Thornton decides to conduct a market research project to explore how Priceless Treasures’ target customers
would respond to the online catalog approach.

32. From data collected by the retail jewelers’ trade association, Ms. Thornton learns that sales of antique jewelry
are rising and that the most common purchasers are older, upper-income couples. Though initially reluctant to
purchase online, these customers are beginning to overcome their concerns. From United States Census Bureau
data, she learns that this population segment is growing in number and will continue to do so throughout the next
two decades. At this point what should Ms. Thornton do?
(A) Summarize the research findings and recommend implementing the online catalog as the firm’s
market is clearly growing.
(B) Collect primary data to determine whether these trends and preferences are reflected in Priceless
Treasures’ customer base.
(C) Collect primary data on competitors to determine whether the online market for antique jewelry is
saturated.
(D) End the study and retain the current system as the major customer segment is clearly skeptical of
online retailers.

33. Ms. Thornton plans to conduct an online survey of her customers. What is the most significant problem with
using this survey method rather than a traditional mail approach?
(A) Respondents may not answer the survey truthfully.
(B) Customers who do not use the Internet will not be in the sample.
(C) Respondents will not be able to see the entire survey and thus may answer only part of it.
(D) Online surveys cannot prevent multiple or inappropriate responses to complex questions.
34. Because pictures of products, either in print or on the Internet, can differ from the actual appearance of a
piece of jewelry, Priceless Treasures’ customers are sometimes disappointed by items they have purchased.
To reduce customer dissatisfaction, the firm’s customer service representatives call customers to answer any
questions they have, confirm their satisfaction with the purchase, and communicate the firm’s refund/return
policies. The firm is seeking to influence the customers’ purchase decision process by
(A) stimulating customers to recognize a need of which they were previously unaware
(B) facilitating an information search by providing new information
(C) influencing alternative assessment by emphasizing the value of the purchased item
(D) reducing cognitive dissonance through the reassurance of personal contact

Answer Key

1. A 18. C
2. A 19. C

3. C 20. D

4. D 21. A

5. C 22. D

6. D 23. B

7. C 24. B

8. B 25. C

9. B 26. A

10. C 27. B

11. B 28. A

12. C 29. C

13. A 30. D

14. C 31. A

15. D 32. B

16. A 33. B

17. B 34. D

Copyright © 2016 by Educational Testing Service. All rights reserved. ETS and the ETS logo are registered trademarks of Educational Testing Service
(ETS). MEASURING THE POWER OF LEARNING is a trademark of ETS. All other trademarks are property of their respective owners. 31866
 The following questions illustrate the range of the test in terms of the abilities measured, the
disciplines covered, and the difficulty of the questions posed. They should not, however, be
considered representative of the entire scope of the test in either content or difficulty. An answer
key follows the questions.

If D is the accepting state of the nondeterministic finite automaton above, which of the following does the automaton
accept?

(A) 001
(B) 1101
(C) 01100
(D) 000110
(E) 100100

2. If a node in the binary search tree above is to be located by binary tree search, what
is the expected number of comparisons required to locate one of the items (nodes) in the tree
chosen at random?

(A) 1.75
(B) 2
(C) 2.75
(D) 3
(E) 3.25
Questions 3 and 4 are based on the following information.

If the variables are suitably initialized, and if i remains within appropriate bounds, then the
following code implements the stack operations Push and Pop when the stack is represented as an
array V[1..N] with an index variable i.

Push: begin V[i] := x ; i := i + 1 ; end

Pop: begin i := i - 1; x := V[i] ; end

3. Which of the following gives the correct initialization for this stack implementation?

(A) i := 0
(B) i := 1
(C) i := N - 1
(D) i := N
(E) i := N / 2

4. If it is assumed that suitable changes in the initialization code were also made,
which of the following changes to Push and Pop would yield a correct implementation of
stacks?

I. Replacing the code for Push with that for Pop and vice versa
II. Making Push decrement i and Pop increment i
III. Reversing the order of the statements in both Push and Pop

(A) I only
(B) II only
(C) III only
(D) I and II only
(E) II and III only

5. In a computer with a cache memory interposed between the processor and the
primary memory, the cache is k-way set-associative (for some fixed k); i.e., each location in
primary memory “maps to” (can be cached in) any of k locations in the cache. Let there be P
locations in primary memory and C locations in the cache.

On the average, how many different locations in primary memory map to a particular location
in the cache if k = 2?

(A) 1
(B) 2
(C) P/C
(D) 2P/C
(E) P
 6. Which of the following regular expressions generate(s) no string with two
consecutive 1’s? (Note that ε denotes the empty string.)

I. (1 + ε)(01 + 0 ) *
(01 + 10 ) *
III. (0 + 1 ) * (0 + ε)

(A) I only
(B) II only
(C) III only
(D) I and II only
(E) II and III only

7. Which of the following C++ expressions does NOT always correctly

compute the mathematical average of the integer variables a, b, c, and d?

(A) float ((a + b + c + d) / 4.0)

(B) (float (a + b + c + d)) / 4
(C) (a + b + c + d) / 4
(D) (a + b + c + d) / 4.0
(E) (a + float (b) + c + d) / 4

8. Consider the following recursive function.

int Fun ( int n )

{
if ( n == 4 )
return 2;
else
return 2 * Fun ( n + 1 );
}

What is the value returned by the function call Fun ( 2 ) ?

(A) 2
(B) 4
(C) 8
(D) 16
(E) 24
 9. If A is an array with n elements and procedure Swap exchanges its arguments,
then the following code segment sorts A in descending order.

for ( int j = 0; j < n - 1; j++ )

for ( int k = 0; k < n - j - 1; k++ )
if ( A[k] < A[k + 1] )
Swap ( A[K], A[k + 1] );

How many calls to Swap are made if initially, A[i] = i, for i = 0, 1, 2, ..., n - 1 ?

(A) n - 1
(B) n
(C) n(n - 1)/2
(D) (n - 1)(n - 2)
(E) n(n - 1)

10. Which of the following statements about static RAM (SRAM) and/or dynamic RAM
(DRAM) is true?

(A) SRAM is implemented using transistors and capacitors that must be periodically
refreshed.
(B) DRAM has a faster access time then SRAM.
(C) DRAM is less expensive then SRAM.
(D) SRAM is capable of operating at speeds closely approximating processors.
(E) DRAM is capable of operating at speeds closely approximating processors.

11. Suppose that {S1, S2, …, SN} is a set of N fixed-length strings ordered alphabetically so that S1 <
… < SN. If these strings are held, in order, in an array of N elements, then the time required to
find the location of Si+1, given the location of Si, 1  i < N has order

(A) 1
(B) log2 N
(C) N
(D) N log2 N
(E) N2

12. Suppose that V is a vector with indices from a to b and that each element of V occupies two words. If the
elements of V are stored in consecutive words of memory and α V[a] is the address of word 1 of V[a], then the address of
word 1 of V[i], where a  i  b, is

(A) (α V[a] – a) + i
(B) 2 (α V[a] – a) + 2i
(C) (α V[a] – 2a) + 2i
(D) (α V[a] – 2a) + i
(E) (α V[a] – a) + 2i
If A, B, C are Boolean variables, and if “” and “” denote Boolean “and” and “or,” respectively, which of the
following is (are) true?

I. A  (B  C) = (A  B)  (A  C)
II. A  (B  C) = (A  B)  (A  C)
III. (B  A)  C = C  (A  B)

(A) I only
(B) II only
(C) I and II only
(D) II and III only
(E) I, II, and III

Answer Key

1. E 5. D 9. C 13. E

2. C 6. A 10. C

3. B 7. C 11. A

4. E 8. C 12. C
The following questions illustrate the range of the test in terms of the abilities measured,
the disciplines covered, and the difficulty of the questions posed. They should not,
however, be considered representative of the entire scope of the test in either content or
difficulty. The notation pages and the answer key follow the questions.

int i → 1
int j → 1

while ( i < 10 )
j → j * i
i → i + 1
if ( i == x )
break
end if
end while

while

( i == 10 ) ( i == x )

x > 10 i == 10

j == 6 x == 4
 A[0..N-1] and a variable pos. The
push and pop operations are defined by the following code.

push (x)
A[pos] → x
pos → pos – 1
end push

pop ( )
pos → pos + 1
return A[pos]
end pop

pos → -1
pos → 0
pos → 1
pos → N - 1
pos → N
C
2
M
2C
M
C
2
M
C
M
2

(1 ε) (01
0)*
1) * (0 ε)
(01 10)*
(0
 int Fun ( int n )
if ( n == 4 )
return 2
else
return 2 * Fun ( n + 1 )
end if
end Fun

Fun ( 2 )

2
4
8
16
24

A[0..n-1] n Swap
A
int j → 0
while ( j < n - 1 )
int k → 0
while ( k < n - j - 1 )
if ( A[k] < A[k + 1] )
Swap ( A[k], A[k + 1] )
end if
k → k + 1
end while
j → j + 1
end while

A n

Swap

n - 1
n
n(n - 1)/2
(n - 1)(n - 2)
n(n - 1)
   


   


  

 widget A
widget byte short long
int
struct
widgets

struct widget A
short s
byte b
long l
int i
end widget

widget A[10]

A
A

lw

lw
P1, P2 , P3, P4

P1
P2
P3

P4
B x

F x
E  x, y

x F x  y E y, x  B y ?

{Last Name}

{Room}

{Shift}

{Rank, Room}
{Room, Shift}
 Major Field Test in Computer Science Notation, Conventions,
and Definitions

êë
éê ùú
úû
( )= ( ) ( )
( ( )) ( )£
>
( )= ( ) ( ) ( )
W( ( )) ( )³
>
( )= ( )
Q( ( )) g(n) f (n)

( )£ ( ) ( >
E £ )

6
®
Ø Ø

Ú +

Å
Ù

È
Ç Í
-
Í
Ì
 x+y { }È { }

ST = { xy x Î S and y Î T}
+ S È T;

Sn

È È È
S+
{ }È +

a ® b