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# 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]

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24 Sep 2006, 11:07
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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 1970â€™s than it did in the 1960â€™s.

(E) The teenage unemployment rate has occasionally declined in the years since 1960.
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24 Sep 2006, 11:16
B
It suggests that there could be some other factors for rising teenage unemployment rate and not minimum wage..so this would weaken the argument.
What's the OA?
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24 Sep 2006, 13:56
I have to go with E on this one...

It says that the unemployent rate has declined a few times since 1960.. which means it declined without the new wage law in effect..

Thus, the relationship is broken. Unemployment rate is not tied to the wage law.

One second thought...B looks good to.
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24 Sep 2006, 19:03
lanuk wrote:
B
It suggests that there could be some other factors for rising teenage unemployment rate and not minimum wage..so this would weaken the argument.
What's the OA?

B for the same reason.
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24 Sep 2006, 19:24
another B.
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24 Sep 2006, 19:32
would like to go with E here.

I dont think rate remaining same can weaken the argument. If we can find or state another reason (other that having subminimum wage) then we can weaken the argument. B certainly doesn't do that ----

Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant. It says minimum wage has remained same. So we don't know what is the effect of decrease in minimum wage.
But E
(E) The teenage unemployment rate has occasionally declined in the years since 1960.

So there is some other reason for unemployment rate to go down.
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24 Sep 2006, 23:03
B is definite.
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25 Sep 2006, 09:29
Going w E
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25 Sep 2006, 10:04
B for me
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25 Sep 2006, 10:05
OA is B
no OE.
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25 Sep 2006, 11:09
Going with B.

Argument says the teenage unemployment rate is increasing because of higher minimum wage and employers don't want to pay that.

Choice B says even when min wage remained constant, rate of unemployment rate has increased, which essentially weakens argument.
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26 Sep 2006, 11:21
B/w B and E, E looks like the answer.
My reasoning

(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant. - That could be because as suggested in para earlier, the industries could not afford them hence did not hire them even if the wages were steady.It could mean that if the wages were lowered, they could be hired hence decreasing the emplyment rate. hence does not neccesarily weaken the argument

(E) The teenage unemployment rate has occasionally declined in the years since 1960.
Weakens the arg by stating that wages may not be the only reason for the unemployment rate
26 Sep 2006, 11:21
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# Teenagers are often priced out of the labor market by the

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