SudiptoGmat wrote:
Recent estimates predict that between 1982 and 1995 the greatest increase in the number of people employed will be in the category of low-paying service occupations. This category, however, will not increase its share of total employment, whereas the category of high-paying service occupations will increase its share.
If the estimates above are accurate, which of the following conclusions can be drawn?
(A) In 1982 more people were working in low-paying service occupations than were working in high-paying service occupations.
(B) In 1995 more people will be working in high-paying service occupations than will be working in low-paying service occupations.
(C) Nonservice occupations will account for the same share of total employment in 1995 as in 1982.
(D) Many of the people who were working in low-paying service occupations in 1982 will be working in high-paying service occupations by 1995.
(E) The rate of growth for low-paying service occupations will be greater than the overall rate of employment growth between 1982 and 1995.
"Number of people employed" will be in various categories: LowS jobs, HighS jobs, LowM jobs, HighM jobs etc
Our concern is the service sector's low (LowS) and high (HighS) paying categories.
LowS will see an increase in the number of people employed but its share in overall employment will not increase. This means the overall employment number must have increased in 1995.
Say in 1982, total people employed was 100 (No. of LowS = L, No. of HighS = H)
Say in 1995, total people employed doubles and becomes 200
To retain their share in the total numbers, both LowS and HighS must have doubled too and become 2L and 2H.
LowS's share did not increase so it did not become more than 2L. Max it became 2L
HighS's share actually increased so it became more than 2H, say it became 2.1H or 3H etc.
Now note that the increase of L in LowS is maximum. So L > 1.1H or 2H etc
Hence in 1982, the number of people employed in LowS jobs were higher than number of people employed in HighS jobs.
Hence (A) is correct.
As for (B), it is not correct. Assume L = 50 and H = 10 (LowS and HighS numbers of 1982)
The numbers becomes 2L = 100 and 3H = 30 in 1995.
All conditions are satisfied but HighS is not greater than LowS in 1995.
(C) Nonservice occupations will account for the same share of total employment in 1995 as in 1982.
Not necessary. Share of HighS has increased. If share of LowS remains the same, non service occupations may account for lower share of total employment.
(D) Many of the people who were working in low-paying service occupations in 1982 will be working in high-paying service occupations by 1995.
Not necessary. We don't know if new people joined HighS or people shifted from LowS.
(E) The rate of growth for low-paying service occupations will be greater than the overall rate of employment growth between 1982 and 1995.
No. The share of LowS does not increase. So its rate of growth is not higher than growth of overall rate of employment.
Answer (A)