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Teenagers are often priced out of the labor market by the [#permalink]
15 Dec 2009, 23:02
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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.
Hi Msunny, you are correct. I understand the fact that a constant minimum wage means that even without any change in minimum wage...unemployment is still rising, but could you explain why E does not hold if unemployment has fallen occasionally since 1960. Is it because we are not sure of the reason why unemployment has fallen.
the teenage unemployment rate, which has been rising since 1960 ....
Statement (e) kinda kindof goes against that statement, I agree. But the bigger picture is that teenage unemployment rate has been increasing and the argument believes the reason behind it is minimum wage. So, something to contradict that line of reasoning will weaken the argument most.