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SVP
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Teenagers are often priced out of the labor market by the [#permalink]
 01 Nov 2005, 04:16
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1. 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 1970тАЩs than it did in the 1960тАЩs.
(E) The teenage unemployment rate has occasionally declined in the years since 1960.
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Intern
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B.....
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Manager
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E.
One of the premise for the argument is that since 1960 teenage unemployment has kept on increasing and the reason for that is that employers are unwilling to pay them the (what they think as high) minimum wage.
But if in certain years, the unemployment has declined then it stands to reason that unemployment in teenagers doesn't depend only on the minimum wage and other factors must play a part and should be considered thereby weakening the argument.
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Manager
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Agree with E.
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Intern
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Doesnt B really say the same thing? I see that E is could be right too but B says that since 1960 even when the minimum wage was constant unemployment rate went up, which means some other factor drove the teenage unemplyment rate up.
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Manager
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Blue Agave, I don't think B is the right answer. The recommendation is to have a sub-minimum wage for teenagers because the minimum wage is considered too high to pay teens. So if as per B, the minimum wage is constant (but still too high to pay to teens), then it follows that teen unemployment will keep on increasing. So B is consistent with the argument presented in the passage and therefore not the right answer.
Of course, this is just my reply to your question. We will have to wait for OA.
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Intern
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olorin wrote: Blue Agave, I don't think B is the right answer. The recommendation is to have a sub-minimum wage for teenagers because the minimum wage is considered too high to pay teens. So if as per B, the minimum wage is constant (but still too high to pay to teens), then it follows that teen unemployment will keep on increasing. So B is consistent with the argument presented in the passage and therefore not the right answer.
Of course, this is just my reply to your question. We will have to wait for OA.
Fair enough, that makes sense. Thanks for the explanation.
I vote E too 
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Director
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The argument is based in the assumption that if the minimun level is lowered, than the unemployment rate will not increase. Only B provides evidence to weaken the argument.
B for me.
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VP
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I don't see any good answer here...only by POE I would go with B
(A) Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
it doesn't mean that if the minimum wage declines, the rate will decline too
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
seems the best answer here, but only because the others are really bad 
(C) Employers often hire extra help during holiday and warm weather seasons.
out of scope
(D) The teenage unemployment rate rose more quickly in the 1970тАЩs than it did in the 1960тАЩs.
no information that could be used with the rate/wage relation
(E) The teenage unemployment rate has occasionally declined in the years since 1960.
we just know that the rate has already declined even with the high current wages however it doesn't mean that reducing the wages would not work. Moreover we can not assume the reason of the decline.
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Director
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C,D,E - Out of scope.
A - Incorrect. Too much inference.
B is the only one which is close.
Hence B
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Director
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C,D,E - Out of scope.
A - Incorrect. Too much inference.
B is the only one which is close.
Hence B
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Director
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C,D,E - Out of scope.
A - Incorrect. Too much inference.
B is the only one which is close.
Hence B
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SVP
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OA is B.
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