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

It is currently 22 Aug 2014, 06:23

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:
Manager
Manager
User avatar
Joined: 07 Dec 2006
Posts: 169
Followers: 1

Kudos [?]: 19 [0], given: 0

GMAT Tests User
In two months, the legal minimum wage in the country of [#permalink] New post 29 Jan 2008, 01:34
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (00:00) wrong based on 0 sessions
In two months, the legal minimum wage in the country of Kirlandia will increase from five Krilandic dollars (KD 5.00) per hour to KD 5.50 per hour. Opponetns 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 KD 5.50 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 KD 5.00 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 had 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.
1 KUDOS received
Director
Director
User avatar
Joined: 14 Oct 2007
Posts: 759
Location: Oxford
Schools: Oxford'10
Followers: 13

Kudos [?]: 174 [1] , given: 8

GMAT Tests User
Re: CR - The legal minimum wage [#permalink] New post 29 Jan 2008, 03:52
1
This post received
KUDOS
GHIBI wrote:
In two months, the legal minimum wage in the country of Kirlandia will increase from five Krilandic dollars (KD 5.00) per hour to KD 5.50 per hour. Opponetns 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 KD 5.50 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. irrelevant, eliminate

B. Some firms in Kirlandia have paid workers considerably less than KD 5.00 per hour, in violation of Kirlandic employment regulations nothing to suggest that those firms will be legal and pay them $5.50 after the rate goes up to 5.50. eliminate

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.
correct, if 5 trianees get their pay that goes up to 5.50, then 100 normal workers's wage could go up from 5.50 to 6, whereby everyone earning more could mean an inflation increase
D. The greatest growth in Kirlandia’s economy in recent years had been in those sectors where workers earn wages that tend to be much higher than the minimum wage.
irrelevant, since we are talking about workers way over minimum wage here
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. not enough info to make a judgement. will the new minimum wage cause these workers to earn substantially more as a whole? Also the passge says that only a small proportion of workers are on minimumwage and this option doesn't have an effect on the entire population as a whole to drive up inflation
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 26 Jan 2008
Posts: 267
Followers: 2

Kudos [?]: 74 [1] , given: 1

GMAT Tests User
Re: CR - The legal minimum wage [#permalink] New post 29 Jan 2008, 18:50
1
This post received
KUDOS
GHIBI wrote:
In two months, the legal minimum wage in the country of Kirlandia will increase from five Krilandic dollars (KD 5.00) per hour to KD 5.50 per hour. Opponetns 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 KD 5.50 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 KD 5.00 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 had 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.


The answer should be (C). To disprove the stated argument, you would need a statement that shows the increase in minimum wage having a major impact (in terms of number of people affected).
A. Irrelevant. This doesn't address how many people receive minimum wage, or will be affected by an increase
B. Irrelevant, as these firms are likely to continue violating regulations
C. Correct. If trainee's were earlier receiving minimum wage (5.00 / hr), trained workers were paid a little higher (some of whom would be getting 5.5 / hr). An increase in the minumum wage would result in an increase of wages for trained workers. This could result in an increase for a lot of workers, effectively driving inflation up.
D. Irrelevant, workers in the 'affluent' category will not be not affected by an increase in the minimum wage.
E. Irrelevant. This simply states the condition of existing minimum wage employees, and does not address how many workers face currently receive minimum wage, and will hence be affected by the raise.
_________________

My GMAT debrief

Manager
Manager
avatar
Joined: 21 Dec 2007
Posts: 99
Followers: 1

Kudos [?]: 14 [0], given: 0

Re: CR - The legal minimum wage [#permalink] New post 29 Jan 2008, 07:05
E...whats the OA?
SVP
SVP
avatar
Joined: 28 Dec 2005
Posts: 1593
Followers: 2

Kudos [?]: 68 [0], given: 2

GMAT Tests User
Re: CR - The legal minimum wage [#permalink] New post 29 Jan 2008, 18:24
write me up for C ...
Expert Post
CEO
CEO
User avatar
Joined: 17 Nov 2007
Posts: 3571
Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Followers: 355

Kudos [?]: 1737 [0], given: 357

GMAT ToolKit User GMAT Tests User Premium Member
Re: CR - The legal minimum wage [#permalink] New post 01 Feb 2008, 05:13
Expert's post
Clear C.
I expect something like that: "the legal minimum wage is a base for calculations of public aids...." :)
_________________

HOT! GMAT TOOLKIT 2 (iOS) / GMAT TOOLKIT (Android) - The OFFICIAL GMAT CLUB PREP APP, a must-have app especially if you aim at 700+ | PrepGame

Re: CR - The legal minimum wage   [#permalink] 01 Feb 2008, 05:13
    Similar topics Author Replies Last post
Similar
Topics:
3 In two months, the legal minimum wage in the country of gmihir 13 22 May 2012, 08:37
In two months, the legal minimum wage in the country of alimad 6 19 Jun 2008, 03:19
In two months, the legal minimum wage in the country of vd 3 10 Jun 2008, 03:06
In two months, the legal minimum wage in the country of mymba99 4 26 Apr 2008, 08:24
In two months, the legal minimum wage in the country of aurobindo 7 31 Jan 2007, 05:53
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®.