In the 1970 s there was an oversupply of college graduates. : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 19 Jan 2017, 22:06

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# In the 1970 s there was an oversupply of college graduates.

Author Message
TAGS:

### Hide Tags

Manager
Joined: 11 Jan 2007
Posts: 197
Location: Bangkok
Followers: 1

Kudos [?]: 63 [0], given: 0

In the 1970 s there was an oversupply of college graduates. [#permalink]

### Show Tags

09 Feb 2007, 10:41
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (02:41) wrong based on 0 sessions

### HideShow timer Statistics

1.In the 1970â€™s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980â€™s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates.
(B) The quality of high school education improved.
(C) Compared to the 1970â€™s, a greater number of high schools offered vocational guidance programs for their students.
(D) The proportion of the population with at least a college-level education increased.
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.
_________________

cool

If you have any questions
New!
Director
Joined: 17 Jul 2006
Posts: 714
Followers: 1

Kudos [?]: 12 [0], given: 0

### Show Tags

09 Feb 2007, 13:13
jet1445 wrote:
1.In the 1970â€™s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980â€™s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates. out of scope
(B) The quality of high school education improved. does not matter
(C) Compared to the 1970â€™s, a greater number of high schools offered vocational guidance programs for their students. out of scope
(D) The proportion of the population with at least a college-level education increased. correct
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.
out of scope
Senior Manager
Joined: 17 Aug 2005
Posts: 392
Location: Boston, MA
Followers: 2

Kudos [?]: 93 [0], given: 0

### Show Tags

09 Feb 2007, 13:26
jet1445 wrote:
1.In the 1970â€™s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980â€™s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates.
(B) The quality of high school education improved.
(C) Compared to the 1970â€™s, a greater number of high schools offered vocational guidance programs for their students.
(D) The proportion of the population with at least a college-level education increased.
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.

E has some holes but I'll still take it.
If people with HS diplomas increased then the proportion of people w/ college degrees decreased, thus creating higher demand for college degrees. But if the # of open jobs remains constant then that should affect pay?

A-decreased demand = lower pay
B-would possibly cause decreased demand for college grads
C-Out of Scope
D-proportion of College ed. people means there would be more of them in the job market and pay would go down.
SVP
Joined: 08 Nov 2006
Posts: 1559
Location: Ann Arbor
Schools: Ross '10
Followers: 14

Kudos [?]: 189 [1] , given: 1

### Show Tags

09 Feb 2007, 13:49
1
KUDOS
jet1445 wrote:
1.In the 1970â€™s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980â€™s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates.
(B) The quality of high school education improved.
(C) Compared to the 1970â€™s, a greater number of high schools offered vocational guidance programs for their students.
(D) The proportion of the population with at least a college-level education increased.
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.

See the blue highlighted text in the argument. It establishes a causal relationship between the oversupply of a graduate pool and the fall in average annual income of that pool.

The argument says that by 1980s there was a 43% gap in the salaries between high school and college graduates eventhough the college graduate pool did not decrease. Applying the causal relationship from above, the gap can increase only

1. If college graduate pool remained constant/decreased and there was an increase in the high school graduate pool(thus decreasing the average annual salary)

OR

2. If college graduate pool increased(decreasing the average annual salary by some %) and there was a comparatively significant increase in the high school graduate pool(thus decreasing the average annual salary to levels by a much higher % )

Senior Manager
Joined: 19 Jul 2006
Posts: 361
Followers: 2

Kudos [?]: 6 [0], given: 0

### Show Tags

10 Feb 2007, 04:48
Straight E
Senior Manager
Joined: 04 Nov 2006
Posts: 268
Location: California
Followers: 1

Kudos [?]: 192 [0], given: 0

### Show Tags

11 Feb 2007, 10:35
my E as well.. gives a good reason for high-schoolers' salary to fall.. and thus the difference to rise..
Manager
Joined: 09 Jan 2007
Posts: 240
Followers: 2

Kudos [?]: 27 [0], given: 0

### Show Tags

18 Feb 2007, 09:31
'E' is the choice, which supports the higher salary logic.
Director
Affiliations: FRM Charter holder
Joined: 02 Dec 2006
Posts: 734
Schools: Stanford, Chicago Booth, Babson College
Followers: 16

Kudos [?]: 79 [0], given: 4

### Show Tags

18 Feb 2007, 21:01

But high schools offered vocational guidance programs, which need not be diplomas. Also, schools offered does not mean that students had their diplomas.
Manager
Joined: 23 Nov 2006
Posts: 177
Followers: 1

Kudos [?]: 60 [0], given: 0

### Show Tags

06 Mar 2008, 21:51
OA = E
Re: CR 1000   [#permalink] 06 Mar 2008, 21:51
Similar topics Replies Last post
Similar
Topics:
3 In the 1970's there was an oversupply of college graduates. 7 09 Dec 2010, 12:22
In the 1970 s there was an oversupply of college graduates. 8 31 Jul 2008, 18:28
2 Top college graduates are having more difficulty 10 06 Jun 2008, 07:08
Top college graduates are having more difficulty 11 22 May 2007, 08:56
Top college graduates are having more difficulty 6 23 Jan 2007, 07:05
Display posts from previous: Sort by