aaron22197 wrote:
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.
Which of the following, if true, casts the most doubt on the validity of the argument above?
A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.
I think this is not a 700Q. Anyways let's get to basics.
Major industries increase the capital reserve -> no decline in the unemployment rate.
To weaken the conclusion, You must see this as a causal passage. increasing capital reserve as the cause and decline in the unemployment as the effect.
If A causes B, to weaken the conclusion One can show B causes A or C causes B.
Anyways...
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
Tell me honestly would it weaken the conclusion, if the government mandates major industries to set aside a fixed amount. Then the employment rate might decline due to other factors or might not decline because of the available money..
E. The drop in the employment rate was more severe this year than last.
Drop in the employment rate in this year was more, so What? I should increase more reserve? Note that the increase in the reserve has not yet taken place. If it had taken place and the drop in the employment rate was more severe then it would be a weakener.. so as of now it is not.
A. Major industry foresaw the drop in employment.
Okay if they did why did not they increase the capital reserve? How is this related to capital reserve increase?
B. Some major industries had appreciable capital reserves.
Yes it did.. Why did then the employment rate decline.. because only some major industries only had capital reserves? .. so if all had there would be no shortage of employment.. isn't this strengthening..
C. An increase in labor costs could adversely affect the employment rate.
If an increase in labor cost affected the employment rate... then capital reserves had no-effect (PROBABLY); so this is the best weakener.