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As per a government rule, all laborers working a minimum of 50 hours

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As per a government rule, all laborers working a minimum of 50 hours [#permalink] New post   13 Oct 2017, 11:18
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As per a government rule, all laborers working a minimum of 50 hours per week qualify to obtain a certain minimum wage.
The rule was introduced a decade ago to safeguard laborers' interests. While its intention has been noble, the rule has, in
practicality, hurt the laborers because there is now reluctance from contractors to provide to laborers anything more than
the minimum wages.

Which one of the following, if true, best explains the contractors' reluctance described above?

A. Laborers do not have any option but to work for these contractors.
B. This rule has brought a surge in the total number of workers wanting to work a minimum of 50 hours per week.
C. Mandating a minimum wage is a standard practice and contractors globally follow similar behavior
D. Minimum wage was introduced as a form of political campaign and the government is not serious in verifying
whether it is actually being implemented.
E. Laborers prefer a fixed certain wage, although it may be meager, over uncertainties in income.

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Re: As per a government rule, all laborers working a minimum of 50 hours [#permalink] New post   15 May 2018, 06:08
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I think ans is B, but don't know why. I chose B only because other answers are wrong...
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Re: As per a government rule, all laborers working a minimum of 50 hours [#permalink] New post   12 Jun 2019, 08:11
wysiwyg wrote:
I think ans is B, but don't know why. I chose B only because other answers are wrong...


Answer B basically points us to a rise in supply.

More money = more people willing to do the job = Less bargaining power for the individual worker

Thus, we are seeing a price drop towards the lower boundary (min. wage) as long as demand for the respective type of work does not increase.

Hope this helps.

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Chris
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Re: As per a government rule, all laborers working a minimum of 50 hours [#permalink] New post   13 Jun 2019, 13:19
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Shouldn't the answer be A
A. Laborers do not have any option but to work for these contractors

If the laborers do not have any option but to work for contractors, contractors can exploit them and give them minimum wages
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Re: As per a government rule, all laborers working a minimum of 50 hours [#permalink] New post   13 Jun 2019, 14:21
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ishan261288 wrote:
Shouldn't the answer be A
A. Laborers do not have any option but to work for these contractors

If the laborers do not have any option but to work for contractors, contractors can exploit them and give them minimum wages


ishan261288, Let's Deep-Dive!

Ideally, the noble rule SHOULD work in favor of workers to avoid over-exploitation.
Now, The contractors are reluctant -----------> The rule is hurting the interest of laborers.

However, this fact is the discrepancy:
    Why a rule, which was initiated for the greater good for the laborers, brought repercussions to the contractors, resulting in hurting the interest of laborers?

Pre-Think:
    We need a factor, which CURRENTLY provides either an advantage for the laborers or a disadvantage for the contractors, resulting in the reluctance of the contractors.

Answer choice analysis:
    A. Laborers do not have any option but to work for these contractors.
      If laborers are at the weaker side ,i.e, if the laborers are in NO position to negotiate, why should the contractors be reluctant?
      - More the reason to exploit!
      This option goes against the Pre-Thinking.

    B. This rule has brought a surge in the total number of workers wanting to work a minimum of 50 hours per week.
      Aha! The workers are at the edge (the stronger side - an advantage for the laborers) and want to exploit the noble rule in order to fulfill the minimum 50 manhours.
      B directly asserts the Pre-Thinking. A contender - Let's Keep it!

    C. Mandating a minimum wage is a standard practice and contractors globally follow similar behavior.
      Irrelevant to the argument

    D. The minimum wage was introduced as a form of political campaign and the government is not serious in verifying whether it is actually being implemented.
      Great! lot's of information - However, Irrelevant to the argument

    E. Laborers prefer a fixed certain wage, although it may be meager, over uncertainties in income.
      What Laborers prefer is immaterial in this context. We need to explain the reluctance of the contractors.
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Re: As per a government rule, all laborers working a minimum of 50 hours [#permalink] New post   06 Oct 2022, 03:23
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: As per a government rule, all laborers working a minimum of 50 hours [#permalink]
06 Oct 2022, 03:23
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