Contrary to the statements of labor leaders, the central : GMAT Critical Reasoning (CR)
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# Contrary to the statements of labor leaders, the central

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03 Nov 2008, 10:45
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Contrary to the statements of labor leaders, the central economic problem facing America today is not the distribution of wealth. It is productivity. With the productivity of U.S. industry stagnant, or even declining slightly, the economic pie is no longer growing. Labor leaders, of course, point to what they consider an unfair distribution of the slices of pie to justify their demands for further increases in wages and benefits. And in the past, when the pie was still growing, management could afford to acquiesce. No longer. Until productivity resumes its growth, there can be no justification for further increases in the compensation of workers.
Which of the following statements by a labor leader focuses on the logical weakness in the argument above?
(A) Although the economic pie is no longer growing, the portion of the pie allocated to American workers remains unjustly small.
(B) If management fails to accommodate the demands of workers, labor leaders will be forced to call strikes that will cripple the operation of industry.
(C) Although productivity is stagnant, the U.S. population is growing, so that the absolute size of the economic pie continues to grow as well.
(D) As a labor leader, I can be concerned only with the needs of working people, not with the problems faced by management.
(E) The stagnation of U.S. industry has been caused largely by factors—such as foreign competition—beyond the control of American workers.
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03 Nov 2008, 11:00
C

critics of labor leaders say that the pie is not groing and wages cannot be increased until the pie grows. C says that even though productivity is low, the pie is still growing due to increased population
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03 Nov 2008, 11:28
abhinav24 wrote:
Contrary to the statements of labor leaders, the central economic problem facing America today is not the distribution of wealth. It is productivity. With the productivity of U.S. industry stagnant, or even declining slightly, the economic pie is no longer growing. Labor leaders, of course, point to what they consider an unfair distribution of the slices of pie to justify their demands for further increases in wages and benefits. And in the past, when the pie was still growing, management could afford to acquiesce. No longer. Until productivity resumes its growth, there can be no justification for further increases in the compensation of workers.

Which of the following statements by a labor leader focuses on the logical weakness in the argument above?

(A) Although the economic pie is no longer growing, the portion of the pie allocated to American workers remains unjustly small.
(B) If management fails to accommodate the demands of workers, labor leaders will be forced to call strikes that will cripple the operation of industry.
(C) Although productivity is stagnant, the U.S. population is growing, so that the absolute size of the economic pie continues to grow as well.
(D) As a labor leader, I can be concerned only with the needs of working people, not with the problems faced by management.
(E) The stagnation of U.S. industry has been caused largely by factors—such as foreign competition—beyond the control of American workers.

C.
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03 Nov 2008, 11:38
A.

Even if the pie is not growing, if the portion allocated to the workers is miniscule, it does support the focus of labour leader.
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03 Nov 2008, 11:51
i am with A on this..

logical flaw is that workers get paid much lower than the rest..thats the logical flaw..
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03 Nov 2008, 11:56
C for me.
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04 Nov 2008, 10:46
Put my vote on A.
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04 Nov 2008, 11:59
fresinha12 wrote:
i am with A on this..

logical flaw is that workers get paid much lower than the rest..thats the logical flaw..

Stimulus: Management claims increases in wages must be matched by increases in productivity.

Evidence: Productivity growth has stopped. Thus the pie has stopped growing. Thus wage growth has stopped.

This says nothing of absolute value of the pie or size of wealth allocation (as mentioned in A).
It has to do with growth.

(C) directly weakens the evidence by pointing out that the Pie is in fact still growing.
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05 Nov 2008, 16:10
IMO A is a trap answer. the stimulus is already saying what A is saying. LL will keep complaining about the unfair share.

Where as C is saying that productivity is not growing the pie but the population is growing the pie. So some how the pie is growing and the management is wrong.

On a diff note, can some explain how can population growth increase the economy pie.
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17 Mar 2009, 07:06
We've been asked to find the logical flaw, not to weaken the argument. Does that make A a better choice than C.

What would have been the answer if we had been asked to weaken the argument. A or C?
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17 Mar 2009, 07:06
We've been asked to find the logical flaw, not to weaken the argument. Does that make A a better choice than C.

What would have been the answer if we had been asked to weaken the argument. A or C?
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20 Aug 2009, 10:47
I definitely hate this question.
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20 Aug 2009, 12:33
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21 Aug 2009, 00:46
what is the source of this question?
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21 Aug 2009, 01:26
Source is CR1000
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21 Aug 2009, 02:25
noboru wrote:
Source is CR1000

Thank you.
I wasn't sure whether this question was a flaw in the resoning or a weaken the argument question, but because the phrase if true most ... does not appear I thought that could be flaw in the reasoning. In flaw in the reasoning questions you cannot bring up new information to the stimulus so we can eliminate C.
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21 Aug 2009, 09:22
icandy wrote:
On a diff note, can some explain how can population growth increase the economy pie.

Well my take on this issue is like this:

if we have 2 ppl with lets say a productivity of \$100.
Assuming economic pie is directly proportional to total productivity. at least it can't be inversely proportional.
Economic Pie = 2*100 * (variables) + ...
If the people increased to 4.
Economic Pie = 4*100 * (variables) + ...

so as such absolute economic pie has increased but the per capita wise it is same.
Did I make any sense?
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03 Nov 2009, 06:16
mikeCoolBoy wrote:
noboru wrote:
Source is CR1000

Thank you.
I wasn't sure whether this question was a flaw in the resoning or a weaken the argument question, but because the phrase if true most ... does not appear I thought that could be flaw in the reasoning. In flaw in the reasoning questions you cannot bring up new information to the stimulus so we can eliminate C.

This question is very tricky. I eliminated A as it was already suggested in the premise. Grr. Now i knw that u cannot bring new info in flaw in reasoning ?s. Thank you mikeCoolBoy.
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03 Nov 2009, 09:36
Actually both A or C point to a logical flaw, but A is sort of given in the stimulus and C indicates a flaw from a diff angle (it might be a bit out of scope). I guess thats how we could arrive at A using the POE..
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