Questions 8-12 3 G$ ]# o* w4 V" R8 P
l Read this letter to the editor of The Economist. 7 ^2 @2 D5 a/ }2 s4 v& {0 u
l Choose the best sentence from the list A-I to fill each of the blanks. + N, i3 A( _# j+ K3 [9 S4 {5 v
l For each bland (8-12) mark one letter (A-I) on your Answer Sheet.
1 T+ Y U1 @( x |* @l Do not mar4 any letter twice. % p, a7 H* n, _- R
l One answer has been given as an example.
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Sir, + S" T& [+ L& i5 d" L. [1 S
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You state on February 13 th that New Mexico has “few natural resources”, ____ example____ In 1991 New Mexico ranked fourth in the United States in production of natural gas, seventh in oil and tenth in non-fuel minerals ____8____ Non-fuel minerals contributed about $ 1 billion and coal $ 509 million.
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0 R5 e9 G- x- J0 I$ [Taxes from production of fuels and minerals, and lease payments on state lands have been set aside by legislative acts to endow two permanent funds worth about $ 5.65 billion, ____9____ In addition, during fiscal year 1991 , payments to New Mexico from taxes on federal lands were S 108 million, all earmarked for public education. ! y- V% P7 ?; X
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____10____ About $566 million came from taxes and permanent-fund earnings attributable to oil and gas production. ____11____ Tourism is an important industry in Mew Mexico, yet its economic impact on the public sector is dwarfed by that of mineral production. + f' q' N6 A$ o* e6 e, A' p6 z
" w! ~+ b+ h' F4 c5 j j4 BNew Mexico came through the recent recession in much better shape than most other states. It does not have a deficit. ____12____ States that rely primarily on a sales tax or on an income tax have big problems during economic downturns. Income growth per head in New Mexico averaged 6.1/00 in the year to October 1992-one if the fastest growth rates in the United States.
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Charles Chapin 9 X' D6 s; _1 _3 v' m
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Example: C 3 q8 \0 S7 r" I. x) L
; |: O2 B1 w" {6 uA. That it has a broadly based tax structure is an important point. , ]0 i$ y* \# r1 i4 N4 n
B. In 1992 it produced more oil than Colorado and Kansas combined.
2 i- ^% r4 q3 R# Z; tC. However, the extractive mineral industry in New Mexico is one of the state’s strongest economic forces.
1 v6 b. |1 r3 S1 g7 z7 ]8 \) t$ }D. During fiscal year 1992 New Mexico raised permanent funds worth about $6.1 billion.
/ g- y) U. O9 |5 C8 T2 A7 bE. The combined value of oil and gas production was $ 2.8 billion. |