A reduction in the number of people filing new claims for state unemployment benefits is one of the first signs that a nationwide recession is coming to an end. Usually such a reduction indicates that companies are not dismissing as many people, a sure sign of economic recovery. The number of people collecting state unemployment benefits has dropped considerably over the last three months, so the recession is coming to an end.
Which of the following is assumed in the passage above?
A) A majority of the number of people who became eligible to file unemployment benefits from the state in the past three months chose to do so. -
This is just a stated fact. It doesn't state anything related to the conclusion that the recession is coming to an end.B) The drop in the number of people collecting unemployment benefits from the state cannot be traced to a reduction in the number of people being dismissed from minimum wage jobs. -
minimum wage jobs? The passage doesn't talk about such jobs in particular. Out of scope.C) A substantial number of people who had been collecting unemployment benefits have been rehired by their former employers during the last three months. -
The people might be rehired, but an equal number may be fired as well.D) A substantial number of people have not in the last three months moved from one state where they have collected unemployment benefits to another state where they continue to receive jobless benefits. -
This weakens the argument.E) The reduction in the number of people collecting unemployment benefits from the state is not because of an increase in the number of people whose benefits came to an end. -
Correct. It removes the probability of the presence of another cause of reduction in unemployment.