Find all School-related info fast with the new School-Specific MBA Forum

It is currently 28 Jul 2014, 16:41

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In two months, the legal minimum wage in the country of

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Director
Director
avatar
Joined: 03 Aug 2012
Posts: 884
Concentration: General Management, General Management
Schools: IIM A '15
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
Followers: 12

Kudos [?]: 163 [0], given: 300

Premium Member CAT Tests
In two months, the legal minimum wage in the country of [#permalink] New post 31 Jan 2013, 19:28
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

33% (02:30) correct 67% (01:48) wrong based on 118 sessions
59. In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars(KD5.00) Per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirfandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?
A. Most people in kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year.
B. Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulations.
C. Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their paylevels above the pay level of trainees.
D. The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage.
E The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.

Plz suggest where I am going wrong?

I don't find any reason why B is right because if Some firms have paid considerably less than KD 5 ,violating the regulations.So even if there will be an increase fron 5KD to 5.5 KD ,some firms will not follow the regulations.Hence ,there won't be any impact on wages (Supporting the conclusion)

By POE , My answer (E),as others are unrelated to argument.

Plz suggest
[Reveal] Spoiler: OA

_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Expert Post
1 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 125

Kudos [?]: 570 [1] , given: 62

GMAT ToolKit User GMAT Tests User Premium Member
Re: In two months, the legal minimum wage in the country of Kirl [#permalink] New post 31 Jan 2013, 20:25
1
This post received
KUDOS
Expert's post
So if a certain thing happened previously, then will it also happen now in order to violate law. Perhaps yes and perhaps no.
Giving a different case:
Previously some firms paid $4.8, thereby violating minimum wage law of at least $5 per worker. Now, the minimum wage has been increased to $5.50 . Probably the employers will raise the wage-may be by $0.1 or by $0.5 so as to maintain the difference.
If it is then certainly the law will have an effect.
_________________

Prepositional Phrases Clarified|Elimination of BEING| Absolute Phrases Clarified
Rules For Posting
www.Univ-Scholarships.com

Expert Post
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 125

Kudos [?]: 570 [0], given: 62

GMAT ToolKit User GMAT Tests User Premium Member
Re: In two months, the legal minimum wage in the country of Kirl [#permalink] New post 31 Jan 2013, 19:51
Expert's post
targetgmatchotu wrote:
59. In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars(KD5.00) Per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirfandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?
A. Most people in kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year.
B. Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulations.
C. Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their paylevels above the pay level of trainees.
D. The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage.
E The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.

Plz suggest where I am going wrong?

I don't find any reason why B is right because if Some firms have paid considerably less than KD 5 ,violating the regulations.So even if there will be an increase fron 5KD to 5.5 KD ,some firms will not follow the regulations.Hence ,there won't be any impact on wages (Supporting the conclusion)

By POE , My answer (E),as others are unrelated to argument.

Plz suggest

How did you deduce the red part?
If a law has been made, then everyone is supposed to comply with the law. Your need not assume anything out of the box.

Now E: okay what if there are so much benefits given to the workers in order to compensate for the low wage. In order to select E, you have to assume a lot.
_________________

Prepositional Phrases Clarified|Elimination of BEING| Absolute Phrases Clarified
Rules For Posting
www.Univ-Scholarships.com

Director
Director
avatar
Joined: 03 Aug 2012
Posts: 884
Concentration: General Management, General Management
Schools: IIM A '15
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
Followers: 12

Kudos [?]: 163 [0], given: 300

Premium Member CAT Tests
Re: In two months, the legal minimum wage in the country of Kirl [#permalink] New post 31 Jan 2013, 20:11
Marcab wrote:
How did you deduce the red part?
If a law has been made, then everyone is supposed to comply with the law. Your need not assume anything out of the box.

Now E: okay what if there are so much benefits given to the workers in order to compensate for the low wage. In order to select E, you have to assume a lot.


If Some firms have paid considerably less than KD 5 even when the minimum wage regulation was 5 KD then how can you expect those firms to comply to the new limit of minimum wage requirement.
_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Intern
Intern
avatar
Joined: 15 Aug 2012
Posts: 47
Followers: 1

Kudos [?]: 18 [0], given: 2

Re: In two months, the legal minimum wage in the country of Kirl [#permalink] New post 01 Feb 2013, 18:37
The conclusion of the argument is the effect of wage rise would be negligible since very few workers earn below the proposed wage level.

We have to identify a situation wherein the wage increase will have at least a decent impact.

Option B cannot be the correct answer, it states that currently some companies violate the min wage law, so how can it be that with the increase in wages they will comply with the new wage ?
Also the other point that makes this option incorrect is the use of word 'some', some means at least 1, it cannot be a huge no, because had that been the case the author would have used many.

Option E also cannot be the correct answer, it states that a worker with current minimum wage is not able to support his family, so with the increase in min wage all we can infer is that he might be able to support his family, but this in no way suggests that the inflation rate will go up.

Option C is the correct answer, it states that in 'many' firms the trainee is given the min legal wage and the workers are given a wage which is more than the trainee, so if the min wage increases then the wage given to trainee will increase and correspondingly the wage given to trained workers will also increase, this increase of money in the hands of many workers can increase the inflation. Hence C is the correct answer.

I did try to search for this question on other forums as well and found that the experts have ruled out B as the correct answer and stated C as the correct choice.
SVP
SVP
User avatar
Joined: 06 Sep 2013
Posts: 1629
Location: United States
Concentration: Finance
GMAT 1: 710 Q48 V39
WE: Corporate Finance (Investment Banking)
Followers: 10

Kudos [?]: 135 [0], given: 254

GMAT ToolKit User
Re: In two months, the legal minimum wage in the country of [#permalink] New post 18 Apr 2014, 12:44
OA should be C

Please change accordingly

Thanks!
Cheers!
J :)
Re: In two months, the legal minimum wage in the country of   [#permalink] 18 Apr 2014, 12:44
    Similar topics Author Replies Last post
Similar
Topics:
In two months, the legal minimum wage in the country of mymba99 4 26 Apr 2008, 08:24
2 Experts publish their posts in the topic In two months, the legal minimum wage in the country of GHIBI 5 29 Jan 2008, 01:34
In two months, the legal minimum wage in the country of aurobindo 7 31 Jan 2007, 05:53
In two months, the legal minimum wage in the country of jerrywu 19 23 Sep 2006, 19:05
In two months, the legal minimum wage in the country of imaru 6 05 Dec 2005, 05:07
Display posts from previous: Sort by

In two months, the legal minimum wage in the country of

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.