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Neither rising industrial output nor a high national minimum

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Manager
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Status: Prepping for the last time....
Joined: 28 May 2010
Posts: 201
Location: Australia
Concentration: Technology, Strategy
GMAT 1: 630 Q47 V29
GPA: 3.2
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Kudos [?]: 16 [0], given: 21

Neither rising industrial output nor a high national minimum [#permalink] New post 17 Jul 2010, 17:39
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

53% (01:52) correct 47% (01:44) wrong based on 34 sessions
Neither rising industrial output nor a high national minimum wage, by itself, establishes a country's economic well-being. Both are required simultaneously since industrial output can rise as a result of a low minimum wage and a high minimum wage prompts many industries to relocate to countries where the minimum wage is lower, thus decreasing a country's industrial output.

If the facts stated in the passage above are true, a proper test of a country's economic well-being is its ability to______.

*maintain a high minimum wage while its industrial output rises
*maintain a high minimum wage while its industrial output falls
*increase minimum wage while its industrial output remains constant
*keep the industrial output constant while its minimum wage falls
*maintain a low minimum wage while its industrial output rises
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Manager
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Re: Wage and Output [#permalink] New post 17 Jul 2010, 20:19
(A)maintain a high minimum wage while its industrial output rises>>make sense, correct
(B)increase minimum wage while its industrial output remains constant>> if high min wage keeps on increasing and industrial output(low) remains constant. Given this high minimum wage prompts many industries to relocate to countries where the minimum wage is lower, thus decreasing a country's industrial output

A my pick
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Director
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Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
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Re: Wage and Output [#permalink] New post 17 Jul 2010, 23:34
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10000% A :-D

I am thinking why GMAC make this CR? The answer is so obvious - Both are required simultaneously.
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Re: Wage and Output [#permalink] New post 18 Jul 2010, 01:56
A is obviously the correct answer.
Initially thought that C is also correct. If your factory is selling the product at a higher price or other costs were reduced or the process is more efficient, then you can maintain the production level and pay higher wages. But the stem uses the verb 'rise' linked to industrial output, not to wages. Wages are considered not as increasing, but as high or low levels. That's why C is wrong.
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Re: Wage and Output [#permalink] New post 19 Jul 2010, 19:20
A for me.
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Re: Wage and Output [#permalink] New post 26 Jul 2010, 05:30
OA Please???
Senior Manager
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Re: Wage and Output [#permalink] New post 14 Aug 2010, 22:26
Its got to be A :-)
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Re: Wage and Output [#permalink] New post 15 Aug 2010, 08:06
Surely A
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Re: Wage and Output [#permalink] New post 15 Aug 2010, 15:33
I have just done similar Q in OG12. A is surely correct
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Re: Wage and Output [#permalink] New post 17 Aug 2010, 13:03
A
Re: Wage and Output   [#permalink] 17 Aug 2010, 13:03
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