Economic expansion continued in May.
Government reports showed gains in industrial
production, personal income, and housing starts
Housing construction, however, remained sluggish,
mainly because the cost of new homes has risen much
faster than average incomes, but housing. starts did
show a small increase over those of April.
1.The author's claims concerning economic expansion
seem to be based on
(A) government data in thee areas
(B) government budgetary reports
(C) the author's own rescarch
(D) the author's personal insight
2.According to the passage, which of the following is
true of housing starts?
(A) They were the same as in previous months.
(B) They were lower in May than in April.
(C) They were slightly higher in May than in April
(D) They were much higher in May than in April
3. According to the passage, housing construction is
recovering slowly because
(A) the cost of a new home is higher than the
government's price guidelines
(B) new homes are being built at a faster rate than
needed
(C) prices of new homes have been going up faster
than increases in people's incomes
(D) new homes are selling faster than anticipated