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Editorial: In Ledland, unemployed adults receive government (2)

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Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post Updated on: 28 Dec 2017, 10:20
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Editorial: In Ledland, unemployed adults receive government assistance. To reduce unemployment, the government proposes to supplement the income of those who accept jobs that pay less than government assistance, thus enabling employers to hire workers cheaply. However, the supplement will not raise any worker's income above what government assistance would provide if he or she were not gainfully employed. Therefore, unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.

Which of the following, if true about Ledland, most seriously weakens the argument of the editorial?

(A) The government collects no taxes on assistance it provides to unemployed individuals and their families.

(B) Neighboring countries with laws that mandate the minimum wage an employer must pay an employee have higher unemployment rates than Ledland currently has.

(C) At any given time, people who are currently employed have the best chance of being offered a job that will give them an income significantly greater than government assistance would give them.

(D) The financial assistance that the government provides to people who have no other income is less than the average starting wage.

(E) People sometimes choose a job for reasons that have nothing to do with the financial benefits it offers.

Same passage with different stem question: LINK

I faced this question in GMATPrep Exam 3, but the answer choices were quite different from what stated here.
Attached is image for reference.
Needless to say, I got it wrong :P

Attachment:
LedlandUnemployed.jpg
LedlandUnemployed.jpg [ 293.07 KiB | Viewed 4305 times ]

Originally posted by AkshayKS21 on 16 Jun 2017, 05:31.
Last edited by broall on 28 Dec 2017, 10:20, edited 2 times in total.
Reformatted question
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 21 Nov 2017, 23:10
2
AkshayKS21 wrote:
I faced this question in GMATPrep Exam 3, but the answer choices were quite different from what stated here.
Attached is image for reference.
Needless to say, I got it wrong :P


the conclusion -- unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.

(D) The financial assistance that the government provides to people who have no other income is less than the average starting wage.

As per my understanding, option D also weakens somewhat, but C is the better one. As we are looking for the best option out of the five. My reasoning for option D,

If the government provides financial assistance which is less than the average starting wage to people with no other source of income, then such people would be more interested in doing the job rather than relying on the financial assistance itself. Also, if you notice carefully, the conclusion is about the UNEMPLOYED PEOPLE but we do not know whether they have some other source of income or not. Unemployment does not mean that THEY WILL definitely does not have the other sources of INCOME AS WELL. So, if the unemployed people are not having the other sources of income as well, then the conclusion is strongly weakened. But if the unemployed people are having some other sources of income, then the starting wage may not seem lucrative to such people even if it is more than the financial assistance. So, option C is the clear winner.

GMATNinja, can you please review my reasoning for option D, the one mentioned in the GMATPrep snapshot just above my post and not the one in the existing post on the GMATClub.

Thanks.
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 22 Nov 2017, 05:04
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GMATNinja

Please review my reasoning for eliminating option D:

Let's assign numbers to the scenario mentioned in the argument:

1. Current income of unemployed adults: $0
2. Government assistance provided to unemployed adults: $100
3. Salary of Jobs below the government supplement: $60
5. New Government assistance: $40

Option D : The financial assistance that the government provides ($40) to people who have no other income is less than the average starting wage ($60).

SO WHAT ? The sum total of what the unemployed people get under the new scheme is still $100. It strengthens the conclusion of the argument that THERE IS NO FINANCIAL INCENTIVE BECAUSE THE PEOPLE STILL GET $100 in total

Hence, we can eliminate option D
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 24 Dec 2017, 09:52
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Hi Verbal Experts,

Could you please elaborate on why option D over here is wrong with an example?
I am a bit confused between C & D.

Thanks in advance! :-)
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Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post Updated on: 29 Dec 2017, 16:50
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Editorial: In Ledland, unemployed adults receive government assistance. To reduce unemployment, the government proposes to supplement the income of those who accept jobs that pay less than government assistance, thus enabling employers to hire workers cheaply. However, the supplement will not raise any worker's income above what government assistance would provide if he or she were not gainfully employed. Therefore, unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.

Which of the following, if true about Ledland, most seriously weakens the argument of the editorial?

(A) The government collects no taxes on assistance it provides to unemployed individuals and their families.

(B) Neighboring countries with laws that mandate the minimum wage an employer must pay an employee have higher unemployment rates than Ledland currently has.

(C) At any given time, people who are currently employed have the best chance of being offered a job that will give them an income significantly greater than government assistance would give them.

(D) The financial assistance that the government provides to people who have no other income is less than the average starting wage.

(E) People sometimes choose a job for reasons that have nothing to do with the financial benefits it offers.


Edit: Moderator Editorial Note: this is a different topic from https://gmatclub.com/forum/editorial-in ... ml#p281146 due to the answer choices.

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Originally posted by GMATNinjaTwo on 28 Dec 2017, 09:34.
Last edited by GMATNinjaTwo on 29 Dec 2017, 16:50, edited 3 times in total.
updated link in Mod. Editorial Note
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 28 Dec 2017, 09:52
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GMATNinjaTwo wrote:
Editorial: In Ledland, unemployed adults receive government assistance. To reduce unemployment, the government proposes to supplement the income of those who accept jobs that pay less than government assistance, thus enabling employers to hire workers cheaply. However, the supplement will not raise any worker's income above what government assistance would provide if he or she were not gainfully employed. Therefore, unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.

Which of the following, if true about Ledland, most seriously weakens the argument of the editorial?

(A) The government collects no taxes on assistance it provides to unemployed individuals and their families.

(B) Neighboring countries with laws that mandate the minimum wage an employer must pay an employee have higher unemployment rates than Ledland currently has.

(C) At any given time, people who are currently employed have the best chance of being offered a job that will give them an income significantly greater than government assistance would give them.

(D) The financial assistance that the government provides to people who have no other income is less than the average starting wage.

(E) People sometimes choose a job for reasons that have nothing to do with the financial benefits it offers.

SidJainGMAT wrote:
Hi Verbal Experts,

Could you please elaborate on why option D over here is wrong with an example?
I am a bit confused between C & D.

Thanks in advance! :-)

Note that this question is similar to another based on the same passage from EP1: https://gmatclub.com/forum/editorial-in ... 40473.html. Choices C, D, and E are slightly different.

As for choice (D) in this version, please refer to the following explanation by fmik7894:

fmik7894 wrote:
GMATNinja

Please review my reasoning for eliminating option D:

Let's assign numbers to the scenario mentioned in the argument:

1. Current income of unemployed adults: $0
2. Government assistance provided to unemployed adults: $100
3. Salary of Jobs below the government supplement: $60
5. New Government assistance: $40

Option D : The financial assistance that the government provides ($40) to people who have no other income is less than the average starting wage ($60).

SO WHAT ? The sum total of what the unemployed people get under the new scheme is still $100. It strengthens the conclusion of the argument that THERE IS NO FINANCIAL INCENTIVE BECAUSE THE PEOPLE STILL GET $100 in total

Hence, we can eliminate option D


Thanks fmik7894, your reasoning was spot on!
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 19 Oct 2018, 10:28
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fmik7894 wrote:
GMATNinja

Please review my reasoning for eliminating option D:

Let's assign numbers to the scenario mentioned in the argument:

1. Current income of unemployed adults: $0
2. Government assistance provided to unemployed adults: $100
3. Salary of Jobs below the government supplement: $60
5. New Government assistance: $40

Option D : The financial assistance that the government provides ($40) to people who have no other income is less than the average starting wage ($60).

SO WHAT ? The sum total of what the unemployed people get under the new scheme is still $100. It strengthens the conclusion of the argument that THERE IS NO FINANCIAL INCENTIVE BECAUSE THE PEOPLE STILL GET $100 in total

Hence, we can eliminate option D


I am still not entirely sold on C (I picked D). Your example assumes that the recipient receives 2 types of assistance, $100 and $40. I'm not sure where this came from since the passage states that unemployed receive government assistance. So if government assistance is $100, and starting wages are $60, then the government will pay $40 to those who are employed to make it even. However, if the starting wage is $120, which is higher than the $100 of government assistance, then isn't there financial incentive to work?

With C, the advantage is clearly to those who already have a job. What if there is a tight job market? The incentive to work can go down
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 08 Nov 2018, 07:37
Can anyone provide a better explanation for C ??
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 25 Feb 2019, 21:21
bpdulog and siddharthfrancis
Although I picked D as well but after reading the explanations here I think what makes C a logical choice is the relation between " Unemployed people " and " people who have no other income ". They aren't the same. People with no other source of income can be physically disabled or special need people or can be any other set of people. Hence this choice is not specifically talking about the Unemployed people (which is the set we are concerned with).
I hope I am correct. Let me know if this makes sense.
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 25 Feb 2019, 21:23
bpdulog and siddharthfrancis
Although I picked D as well but after reading the explanations here I think what makes C a logical choice is the relation between " Unemployed people " and " people who have no other income ". They aren't the same. People with no other source of income can be physically disabled or special need people or can be any other set of people. Hence this choice is not specifically talking about the Unemployed people (which is the set we are concerned with).
I hope I am correct. Let me know if this makes sense.
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New post 26 Feb 2019, 03:26
Can someone shed light on why A is dismissed..I feel that if government does not collect taxes on part of worker's income it would be an incentive to become employed. Why is my compass pointing in the wrong direction.
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 26 Feb 2019, 07:50
Hi Sony,

Happy to respond! Though I am not an expert I will share my reasoning. “A” mentions that if an unemployed receives government assistance then only there will be no taxes. If they are employed then they may be required to pay taxes which in some way strengthens the argument. Hope this clarifies! Thank you!

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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 26 Feb 2019, 09:34
sony1000

Hey Sony,

As per the option it says government do not collect taxes on the assistance provided to unemployed which in turns strengthen the argument's conclusion that now unemployed people will have incentive to not take the jobs. So this is opposite answer trap.
Hope it helps to clarify your doubt.
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 09 May 2019, 05:17
bpdulog wrote:
fmik7894 wrote:
GMATNinja

Please review my reasoning for eliminating option D:

Let's assign numbers to the scenario mentioned in the argument:

1. Current income of unemployed adults: $0
2. Government assistance provided to unemployed adults: $100
3. Salary of Jobs below the government supplement: $60
5. New Government assistance: $40

Option D : The financial assistance that the government provides ($40) to people who have no other income is less than the average starting wage ($60).

SO WHAT ? The sum total of what the unemployed people get under the new scheme is still $100. It strengthens the conclusion of the argument that THERE IS NO FINANCIAL INCENTIVE BECAUSE THE PEOPLE STILL GET $100 in total

Hence, we can eliminate option D


I am still not entirely sold on C (I picked D). Your example assumes that the recipient receives 2 types of assistance, $100 and $40. I'm not sure where this came from since the passage states that unemployed receive government assistance. So if government assistance is $100, and starting wages are $60, then the government will pay $40 to those who are employed to make it even. However, if the starting wage is $120, which is higher than the $100 of government assistance, then isn't there financial incentive to work?

With C, the advantage is clearly to those who already have a job. What if there is a tight job market? The incentive to work can go down


Although I picked C , I am not able to refute bpdulog's logic. Can you please help ? VeritasKarishma GMATNinja chetan2u generis
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Re: Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 09 May 2019, 21:57
Hi Experts,

Please help to explain why option C is correct here.

Thanks
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Editorial: In Ledland, unemployed adults receive government (2)  [#permalink]

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New post 10 May 2019, 12:49
AkshayKS21 wrote:
Editorial: In Ledland, unemployed adults receive government assistance. To reduce unemployment, the government proposes to supplement the income of those who accept jobs that pay less than government assistance, thus enabling employers to hire workers cheaply. However, the supplement will not raise any worker's income above what government assistance would provide if he or she were not gainfully employed. Therefore, unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.

Which of the following, if true about Ledland, most seriously weakens the argument of the editorial?

(A) The government collects no taxes on assistance it provides to unemployed individuals and their families.

(B) Neighboring countries with laws that mandate the minimum wage an employer must pay an employee have higher unemployment rates than Ledland currently has.

(C) At any given time, people who are currently employed have the best chance of being offered a job that will give them an income significantly greater than government assistance would give them.

(D) The financial assistance that the government provides to people who have no other income is less than the average starting wage.

(E) People sometimes choose a job for reasons that have nothing to do with the financial benefits it offers.

Same passage with different stem question: LINK

I faced this question in GMATPrep Exam 3, but the answer choices were quite different from what stated here.
Attached is image for reference.
Needless to say, I got it wrong :P

Attachment:
LedlandUnemployed.jpg


Hi Ritwick91 (and sayan640 ) - Happy to chime in here!

In this argument, we draw the conclusion that "unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement" basically because according to the argument - the incentive would be a wash - as it would make up for any amount below unemployment - but nothing beyond that point. So, individuals wouldn't be financially incentivized to take on jobs that would (after the supplement) pay the same amount as unemployment.

Answer choice (C) gives us a reason the incentive may be helpful despite this - as it would allow individuals to take on lower-paying jobs in hopes of advancing to higher paying jobs, without risking taking on a job that pays below the unemployment level. So, despite not bringing the individuals to a higher pay level than unemployment - it puts them in a position to obtain a higher paying job without the disadvantage of a lower-than-unemployment job in the meantime. This provides a financial incentive to said individuals.

Answer choice (D) on the other hand, doesn't matter to us, since it is irrelevant to those who would earn above the unemployment assistance level, and for those who earn below that level - it is a wash (as mentioned above). So, it doesn't weaken the conclusion that "unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement" - since to do so, we need a reason unemployed people might have some financial incentive to accept jobs that would entitle them to the supplement. (C) gives this to us, while (D) does not.

I hope this helps!
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Editorial: In Ledland, unemployed adults receive government (2)   [#permalink] 10 May 2019, 12:49
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