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CR Revision: The recent decline in the employment rate was spurred by

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CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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28 Jan 2016, 11:38
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75% (hard)

Question Stats:

56% (01:29) correct 44% (01:37) wrong based on 513 sessions

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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.

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CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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01 Feb 2016, 05:16
5
RAHKARP27071989 wrote:

Hi chetan2u,

Quote:
Up to my understanding if GMAT question says-->Increasing A leads to increase B ) And now we need to weaken this conclusion
That means we need to show Increasing A DOES NOT leads to increase B
Now, if we come across an option which says Increasing C DOES NOT leads to increase B ( This option can't WEAKEN until C and A are interlinked )

you are correct in the observation. But the logic in the Q does not follow the same pattern..
It says:- However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries...
the use of "if it had not been for" tells us that capital reseves is the only reason"
So to negate it, we have to show " that there can be other reasons too which can lead to same outcome"

here the logic is..
1)A would not have happened if it had not been for B..
that is Only B can lead to A..
2)to weaken this, you have to show C can also lead to A..
this is exactly Choice C is doing ..

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1) Absolute modulus : http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
2)Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html
3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html

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Joined: 12 Jan 2015
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Re: CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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30 Jan 2016, 10:38
1
Hi souvik101990,

chetan2u,

Although I choose the correct answer, but I am not convinced.
I opted C because other options ( A, D and E) are completely irrelevant.

Now left with B and C.

Conclusion- if major industries increase their capital reserves, the employment rate will not decline in the future
As we have to weaken the argument, so we need to find an option which says
Increasing capital reserve not going improve employment rate.

B. Some major industries had appreciable capital reserves.
The word "SOME" makes me cautious. Therefore eliminated.

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

I opted it bcz nothing left.
What is the link between LABOR COSTS and CASH RESERVES....?

Does it mean if labor cost increases then we have to take amount from cash reserve and hence employment rate not going to improve..?
Am I rite..?

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Prakhar

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Posts: 6957
CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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30 Jan 2016, 20:35
RAHKARP27071989 wrote:
Hi souvik101990,

chetan2u,

Although I choose the correct answer, but I am not convinced.
I opted C because other options ( A, D and E) are completely irrelevant

Conclusion- if major industries increase their capital reserves, the employment rate will not decline in the future
As we have to weaken the argument, so we need to find an option which says
Increasing capital reserve not going improve employment rate.

B. Some major industries had appreciable capital reserves.
The word "SOME" makes me cautious. Therefore eliminated.

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

I opted it bcz nothing left.
What is the link between LABOR COSTS and CASH RESERVES....?

Does it mean if labor cost increases then we have to take amount from cash reserve and hence employment rate not going to improve..?
Am I rite..?

Hi,

here, we have to doubt the argument, and just not the conclusion..

the argument is..
decline in employment rate was spurred by predictions of slow growth. However,predictions would not have affected if major ind had capital reserves...
and conclusion is
if the major industries increase their cash reserves, there will be no decline in employment rate..

You have eliminated B for correct reasons ..

the reasoning for C to be correct is:-
C. An increase in labor costs could adversely affect the employment rate...

C is giving reasons other than sufficient reserves that can result in decrease of employment rate.
So even if the industries had sufficient reserves, an increase in labour costs can lead to decrease in employment rate..
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1) Absolute modulus : http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
2)Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html
3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html

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Posts: 205
Re: CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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31 Jan 2016, 14:45
chetan2u wrote:
RAHKARP27071989 wrote:
Hi souvik101990,

chetan2u,

Although I choose the correct answer, but I am not convinced.
I opted C because other options ( A, D and E) are completely irrelevant.

Now left with B and C.

Conclusion- if major industries increase their capital reserves, the employment rate will not decline in the future
As we have to weaken the argument, so we need to find an option which says
Increasing capital reserve not going improve employment rate.

B. Some major industries had appreciable capital reserves.
The word "SOME" makes me cautious. Therefore eliminated.

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

I opted it bcz nothing left.
What is the link between LABOR COSTS and CASH RESERVES....?

Does it mean if labor cost increases then we have to take amount from cash reserve and hence employment rate not going to improve..?
Am I rite..?

Hi,

here, we have to doubt the argument, and just not the conclusion..

the argument is..
decline in employment rate was spurred by predictions of slow growth. However,predictions would not have affected if major ind had capital reserves...
and conclusion is
if the major industries increase their cash reserves, there will be no decline in employment rate..

You have eliminated B for correct reasons ..

the reasoning for C to be correct is:-
C. An increase in labor costs could adversely affect the employment rate...

C is giving reasons other than sufficient reserves that can result in decrease of employment rate.
So even if the industries had sufficient reserves, an increase in labour costs can lead to decrease in employment rate..

Hi chetan2u,

Up to my understanding if GMAT question says-->Increasing A leads to increase B ) And now we need to weaken this conclusion
That means we need to show Increasing A DOES NOT leads to increase B
Now, if we come across an option which says Increasing C DOES NOT leads to increase B ( This option can't WEAKEN until C and A are interlinked )

In argument

The conclusion says-->
Increase in Cash reserves leads to improve employment rate or decrease Unemployment.
Now if any option gives any kind of connection between Labor cost and Employment Rate--> WE DON'T CARE
Bcz we just need to prove Improving Cash reserves does not improve employment rate.

We will only consider any option if it is going to make impact on Cash reserve and in turn impact on employment rate.

CORRECT ME IF I AM WRONG
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Prakhar

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Posts: 205
Re: CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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01 Feb 2016, 11:21
HI chetan2u,

Bingo....:D
You are absolutely correct. From now onward I will definitely pay attention to this kind of wording.

Thanks alot...
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Prakhar

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Joined: 27 Aug 2015
Posts: 86
Re: CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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11 Nov 2016, 00:52
Hi Experts , when i was trying to attempt this question i was thinking that we need an option that would suggest that not capital reserves but prediction was the cause of decline in empl rate and option A matches it. It says that major industry foresaw the drop in empl rate. Can you please explain why this option is wrong.?
Thanks
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Joined: 23 Apr 2014
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Location: United States
GMAT 1: 680 Q50 V31
GPA: 2.75
CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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07 Dec 2016, 19:04
rakaisraka wrote:
Hi Experts , when i was trying to attempt this question i was thinking that we need an option that would suggest that not capital reserves but prediction was the cause of decline in empl rate and option A matches it. It says that major industry foresaw the drop in empl rate. Can you please explain why this option is wrong.?
Thanks

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.

First line of the argument says that "The recent decline in the employment rate was spurred by predictions "
Therefore we cannot have option A as the answer as it is already mentioned in argument and therefore cannot be used as a weakening statement.

Also, this argument has causative structure wherein If capital reserve is there (cause) --> employment rate will not decline (effect).
As mentioned in the discussion above, option C gives another reason for the effect and is therefore a perfect answer.

Few ways we can weaken a causation relation :-
1. Show that there is reverse causation in play.
2. Show that correlation is in play (some other cause for both earlier mentioned cause and effect).
3. Show that there is some other cause for the same effect - this is what is happening here in right answer- labor cost is adversely affecting employment rate.
4. Show that there is some issue with the cause. Any problem with the cause will weaken the whole relation.

Also we should not use some info which is already given in argument to weaken the conclusion.

Hope this helps.
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Re: CR Revision: The recent decline in the employment rate was spurred by  [#permalink]

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