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# The average hourly wage of television assemblers in Vernland

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The average hourly wage of television assemblers in Vernland [#permalink]  30 Apr 2013, 21:48
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62% (02:21) correct 38% (01:51) wrong based on 110 sessions
The average hourly wage of television assemblers in Vernland has long been significantly lower than that in neighboring Borodia. Since Borodia dropped all tariffs on Vernlandian televisions three years ago, the number of televisions sold annually in Borodia has not changed. However, recent statistics show a droip in the number of television assemblers in Borodia. Therefore, updated trade statistics will probably indicate that the number of televisions Borodia imports annually from Vernland has increased.

Which of the following is an assumption on which the argument depends?

A. The number of television assemblers in Vernland has increased by at least as much as the number of television assemblers in Borodia has decreased.
B. Televisions assembled in Vernland have features that televisions assembled in Borodia do not have.
C. The average number of hours it takes a Borodian television assembler to assemble a television has not decreased significantly during the past three years.
D. The number of televisions assembled annually in Vernland has increased significantly during the past three years.
E. The difference between the hourly wage of television assemblers in Vernland and the hourly wage of television assemblers in Borodia is likely to decrease in the next few year

I found this OG question difficult to understand. Please, First let me understand the argument. Does the hourly wages affect the number of computers sold in Barodia? Can Barodia importing PCs from anywhere other than Verniland? It will be better if anyone can guide it with numbers.
[Reveal] Spoiler: OA
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Re: The average hourly wage of television assemblers [#permalink]  30 Apr 2013, 22:10
1
KUDOS
Sure my friend. This is a rate problem if you're interested in Quant.

Let analyze an example:

Before:
Barodia has 100 workers.
It took 4 hours per worker to assembly 1 TV.
Each worker works 8 hour a day
==> 100 worker will assemble (8/4)*100 = 200 TV/day.

After:
the number of workers decreases to 80 workers
it takes 2 hours per worker to assembly 1 TV.
Each worker still works 8 hour a day
==> 80 workers will assemble (8/2)*80 = 240 TV/day

You see even the number of workers decreases, but the amount of time to assemble a TV also decreases significantly, the total TV assembled may increase.

Hope it helps.
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Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

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Re: The average hourly wage of television assemblers [#permalink]  01 May 2013, 01:25
1
KUDOS
Hi Umesh,
No need to look at the numbers in detail here.
Just break down the information so that it becomes easier for you to relate the facts with each other.

Borodia will be referred as B and Vernlandian as V
For Telivision assemblers:
1. hourly wage in V << hourly wage in B
2. Borodia dropped all tariffs on V televisions three years ago.

3. No of televisions sold in B =constant

Which can be written as
In Borodia :
3(a) No of TV (assembled in B) + No of TV (assembled in V) = No Change

4. number of television assemblers in B went down.

Now point 4 sates that number of television assemblers in B went down.
This will imply that if productivity of assemblers in B has not gone up then number of telivision assembled at B will go down.

But for equaltion 3(a) to hold means the import from V will have to go up.
So productiivty of assemblers in B going up is the assumption.
More the proudcitivity lesser will be the time taken to assemble the TV.
Hence Choice C is the correct answer.
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Re: The average hourly wage of television assemblers [#permalink]  01 May 2013, 03:08
ssbisht wrote:

Borodia will be referred as B and Vernlandian as V
For Telivision assemblers:
1. hourly wage in V << hourly wage in B
2. Borodia dropped all tariffs on V televisions three years ago.

3. No of televisions sold in B =constant

Which can be written as
In Borodia :
3(a) No of TV (assembled in B) + No of TV (assembled in V) = No Change

4. number of television assemblers in B went down.

Now point 4 sates that number of television assemblers in B went down.
This will imply that if productivity of assemblers in B has not gone up then number of telivision assembled at B will go down.

But for equaltion 3(a) to hold means the import from V will have to go up.
So productiivty of assemblers in B going up is the assumption.
More the proudcitivity lesser will be the time taken to assemble the TV.
Hence Choice C is the correct answer.

+1 kudo Ssbisht,
I tried to understood your analysis. I only couldn't get the red marked line of yours(above).

Can you read what I understood? I will go by the argument serially.

1. hourly wage(V)<< hourly wage(B)
2. Barodia dropped all tariff on V TV, 3 years ago
It means V can export TVs to B in much higher volume. Barodia started importing TVs from V in higher amount after effect of no-tariff rule.
3. No of television sold (B) =constant.
Any TV sold in B can be [imported from V] OR [assembled in B itself] assuming there are no other countries exporting TVs to B.
constant= TV assembled (B) + TV assembled in (V)
C= B + V
4. Television assembled in B has gone down, it
In eq(3) if, B has gone down, V must have increased as C is fixed value.
i.e. knowing, Assemblers in B has gone down, I can say the number of TVs exported from V should have gone up.

Questions:
1. I am unable to conclude that productivity of B has gone down. ( which is assumption in choice C)
2. Does statement(1) help anywhere for the conclusion? or its just shell game to distract?
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Re: The average hourly wage of television assemblers [#permalink]  01 May 2013, 20:55
2
KUDOS
umeshpatil wrote:
ssbisht wrote:

Borodia will be referred as B and Vernlandian as V
For Telivision assemblers:
1. hourly wage in V << hourly wage in B
2. Borodia dropped all tariffs on V televisions three years ago.

3. No of televisions sold in B =constant

Which can be written as
In Borodia :
3(a) No of TV (assembled in B) + No of TV (assembled in V) = No Change

4. number of television assemblers in B went down.

Now point 4 sates that number of television assemblers in B went down.
This will imply that if productivity of assemblers in B has not gone up then number of telivision assembled at B will go down.

But for equaltion 3(a) to hold means the import from V will have to go up.
So productiivty of assemblers in B going up is the assumption.
More the proudcitivity lesser will be the time taken to assemble the TV.
Hence Choice C is the correct answer.

+1 kudo Ssbisht,
I tried to understood your analysis. I only couldn't get the red marked line of yours(above).

Can you read what I understood? I will go by the argument serially.

1. hourly wage(V)<< hourly wage(B)
2. Barodia dropped all tariff on V TV, 3 years ago
It means V can export TVs to B in much higher volume. Barodia started importing TVs from V in higher amount after effect of no-tariff rule.
3. No of television sold (B) =constant.
Any TV sold in B can be [imported from V] OR [assembled in B itself] assuming there are no other countries exporting TVs to B.
constant= TV assembled (B) + TV assembled in (V)
C= B + V
4. Television assembled in B has gone down, it
In eq(3) if, B has gone down, V must have increased as C is fixed value.
i.e. knowing, Assemblers in B has gone down, I can say the number of TVs exported from V should have gone up.

Questions:
1. I am unable to conclude that productivity of B has gone down. ( which is assumption in choice C)
2. Does statement(1) help anywhere for the conclusion? or its just shell game to distract?

Hi Umesh,

1. hourly wage(V)<< hourly wage(B)

2. Barodia dropped all tariff on V TV, 3 years ago

It means V can export TVs to B in much higher volume. Barodia started importing TVs from V in higher amount after effect of no-tariff rule.
Don’t assume this right away else you will make a different conclusion from the argument.

3. No of television sold (B) =constant.
Any TV sold in B can be [imported from V] OR [assembled in B itself] assuming there are no other countries exporting TVs to B.
constant= TV assembled (B) + TV assembled in (V)
C= B + V
You are correct here.

4. Television assembled in B has gone down.-This is the conclusion we need to strengthen
In eq(3) if, B has gone down, V must have increased as C is fixed value.
i.e. knowing, Assemblers in B has gone down, I can say the number of TVs exported from V should have gone up.

Questions:
1. I am unable to conclude that productivity of B has gone down. (which is assumption in choice C)
I think you misread choice C here .It says the number of hours to assemble television has not gone down significantly which implies that Productivity has not gone up significantly.
Remember that lesser the hours required to assemble a television the more the productivity.
So choice C is saying that Productivity of B has not gone up significantly. If productivity has gone up then B will produce more TV and will not require import from V.

2. Does statement (1) help anywhere for the conclusion? Or its just shell game to distract?
Yes this and statement 2 is not required. Remember don’t assume anything like you did for statement 2 as that will take on an alternate understanding of argument.
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Re: The average hourly wage of television assemblers [#permalink]  01 May 2013, 21:09
Hi Ssbisht,

+1 kudo.

Perfect ! Thanks for the right guidance to my query.

Regards,
Umesh Patil
Re: The average hourly wage of television assemblers   [#permalink] 01 May 2013, 21:09
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