Columnist: Raising the minimum wage to the level recently proposed will actually hurt, rather than help, workers with low incomes. As the minimum wage increases, businesses must compensate for higher wage costs by increasing prices for the goods and services that low-income workers must buy but can already barely afford.
Which one of the following is an assumption on which the columnist’s argument depends?The columnist argues that the proposed minimum-wage increase will hurt low-income workers because businesses will raise prices on things those workers need to buy.
The argument assumes that the higher wages will not fully make up for the higher prices. Otherwise, low-income workers would not necessarily be worse off.
(A) Workers who earn more than the minimum wage would not also be hurt by increased prices for goods and services.
Wrong. The argument is about low-income workers, not workers who earn more than the minimum wage.
(B) Any increase to the minimum wage smaller than the one proposed would not substantially affect prices of goods and services.
Wrong. The argument is only about the proposed increase, not smaller increases.
(C) The proposed minimum-wage increase would not wholly compensate low-income workers for the resulting increase in prices for goods and services.
Correct. If the wage increase fully compensated low-income workers for the higher prices, then the columnist could not conclude that the increase would hurt them. So the columnist must assume that the price increase would outweigh, or at least not be fully offset by, the wage gain.
(D) If raising the minimum wage helped low-income workers, this would be a good reason for raising it.
Wrong. The columnist’s argument does not depend on what would count as a good reason for raising the minimum wage.
(E) Changes in the minimum wage are generally not as beneficial to the economy as is commonly believed.
Wrong. This is too broad. The argument is specifically about whether the proposed increase would hurt low-income workers
through higher prices.
Answer: (C)