Teenagers are often priced out of the labor market by the

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Teenagers are often priced out of the labor market by the [#permalink]

09 Mar 2011, 20:21

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Teenagers are often priced out of the labor market by the government-mandated minimum-wage level because employers cannot afford to pay that much for extra help. Therefore, if Congress institutes a subminimum wage, a new lower legal wage for teenagers, the teenage unemployment rate, which has been rising since 1960, will no longer increase.

Which of the following, if true, would most weaken the argument above?

(A) Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
(C) Employers often hire extra help during holiday and warm weather seasons.
(D) The teenage unemployment rate rose more quickly in the 1970’s than it did in the 1960’s.
(E) The teenage unemployment rate has occasionally declined in the years since 1960.

[Reveal] Spoiler: OA

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Re: Teenagers are often priced out of the labor market [#permalink]

10 Mar 2011, 04:34

assumption : lowering the min wage levels will decrease the teenage unemployment rate

If there is increase in the teenage unemployment rate when the min wage levels are already down - the arg falls apart. That's B

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Re: Teenagers are often priced out of the labor market [#permalink]

10 Mar 2011, 08:33

why not A.

Though B greatly weakens the argument.

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Re: Teenagers are often priced out of the labor market [#permalink]

10 Mar 2011, 10:50

The best answer is B. This is an assumption question. Hence, we need to first find the conclusion.
Conclusion is : teenage umemployment rate will no longer increase if congress reduces(subminimum) the minimum wage.

A) Since 1960 the teenage unemployment rate has risen when the minimum wage has risenThis talks about increase in mimnimum wages. Could be a possible answer but (b) is the best
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.Best answer. This says that the unemplyment rate increased even when the wage was constant.
(C) Employers often hire extra help during holiday and warm weather seasons.Irrelevant to passage and conclusion
(D) The teenage unemployment rate rose more quickly in the 1970’s than it did in the 1960’s.Irrelevant to passage and conclusion
(E) The teenage unemployment rate has occasionally declined in the years since 1960Irrelevant to passage and conclusion

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Re: Teenagers are often priced out of the labor market [#permalink]

20 Mar 2011, 04:22

@sun01, please read the question wording - most weaken. This in context for GMAT however implies that only one choice weakens, and A actually strengthens the argument.

because employers cannot afford to pay that much for extra help..

So if Minimum wages increase even more, they will not be able to afford further and hence teenage unemployment rate will rise.
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Re: Teenagers are often priced out of the labor market [#permalink] 20 Mar 2011, 04:22

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