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The recent decline in the employment rate was spurred by

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The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 04:02
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56% (02:10) correct 44% (01:30) wrong based on 64 sessions
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.


Which of the following, if true, casts the most doubt on the validity of the argument above?

A)Major industry foresaw the drop in employment.

B)Some major industries had appreciable capital reserves.

C)An increase in labor costs could adversely affect the employment rate.

D)The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.

E)The drop in the employment rate was more severe this year than last.
[Reveal] Spoiler: OA
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 05:18
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.


Which of the following, if true, casts the most doubt on the validity of the argument above?


C)An increase in labor costs could adversely affect the employment rate.

This clearly mentiones that just increasing capital reserves will not stop the employement rate. There are other factors/variables that can affect the employement rate.
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 06:14
I go with C as well!
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 06:44
aaron22197 wrote:
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.


Which of the following, if true, casts the most doubt on the validity of the argument above?

A)Major industry foresaw the drop in employment.

B)Some major industries had appreciable capital reserves.

Conclusion is "if major industries increase their capital reserves, the employment rate will not decline in the future.". This stament is saying that this was already the case and still we experienced the employment decline. Please explain the flaw in this choice.

C)An increase in labor costs could adversely affect the employment rate.

D)The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.

E)The drop in the employment rate was more severe this year than last.


I am confused between b and c
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 06:51
rao_1857 wrote:
aaron22197 wrote:
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.


Which of the following, if true, casts the most doubt on the validity of the argument above?

A)Major industry foresaw the drop in employment.

B)Some major industries had appreciable capital reserves.

Conclusion is "if major industries increase their capital reserves, the employment rate will not decline in the future.". This stament is saying that this was already the case and still we experienced the employment decline. Please explain the flaw in this choice.

C)An increase in labor costs could adversely affect the employment rate.

D)The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.

E)The drop in the employment rate was more severe this year than last.


I am confused between b and c


The author does not quantify 'some'. We really can't say how many. What if some = 2?? would that be a sufficient sample to generalize on??....nope!!
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 07:44
guys - is it now C or B ? :?:
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 08 Jul 2008, 07:59
ashwin is correct. C it is.
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 01 Sep 2013, 09:31
The conclusion is that "if major industries increase their capital reserves, the
employment rate will not decline in the future." Why? Because major industry did
not have capital reserves. The author assumes that having capital reserves is
sufficient to prevent a decline in the employment rate. We are asked to cast
doubt (i.e., weaken) the author's claim.
(A) Whether the drop in employment was foreseen does not relate to the core of
the argument, which is that capital reserves will prevent another decline in the
employment rate.
(B) The fact that some major industries had appreciable capital reserves does
not contradict the claim that an increase in these reserves would prevent a future
drop in employment rates.
(C) CORRECT. The author neglects to take into account the fact that other
factors, such as an increase in labor costs, could adversely affect the
employment rate. For example, if the cost of labor becomes prohibitively
expensive, even with increased reserves, the employment rate could decline.
(D) Legislation mandating a certain level of reserves does not contradict the
claim that increased reserves would prevent a drop in employment rates.
(E) The fact that the employment rate was more severe this year than last does
not contradict the claim that an increase in reserves would prevent a drop in the
employment rate.
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Re: The recent decline in the employment rate was spurred by [#permalink] New post 27 Apr 2015, 01:46
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: The recent decline in the employment rate was spurred by   [#permalink] 27 Apr 2015, 01:46
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