Teenagers are often priced out of the labor market by the : GMAT Critical Reasoning (CR)
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# Teenagers are often priced out of the labor market by the

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

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15 Dec 2006, 11:41
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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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Re: CR_Teenagers are often priced out........... [#permalink]

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15 Dec 2006, 11:45
I would go for B. The author connects the teenage unemployment problem to the minimum wage increase. B establishes that even when the wage remained constant, unemployment increased.

mm007 wrote:
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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15 Dec 2006, 12:44
B too ..for the same reason..
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16 Dec 2006, 15:48
I'm not sure how B can be the best answer; however, rest are definitely not even close. In B, it is suggested that teenage employment decreased when minimum wage is constant. Now, if the minimum wage is already unaffordable or unreasonaly high then that strengthens why a sub-minimum wage level is required. What $10/hr could not accomplish,$7/hr may accomplish unless there is some other strong motivations for employers to not employ teenagers irrspective of wage rate. But argument didn't give any hint toward that.
Anybody wants to agrue ?
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16 Dec 2006, 15:48
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