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# How many really suffer as a result of labor market problems?

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How many really suffer as a result of labor market problems?  [#permalink]

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17 Apr 2009, 05:50
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Quote:
Part of New RC Series- Please check this link for more questions

How many really suffer as a result of labor market problems? This is one of the most critical yet contentious social policy questions. In many ways, our social statistics exaggerate the degree of hardship. Unemployment does not have the same dire consequences today as it did in the 1930’s when most of the unemployed were primary breadwinners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programs for those failing in the labor market. Increasing affluence, the rise of families with more than one wage earner, the growing predominance of secondary earners among the unemployed, and improved social welfare protection have unquestionably mitigated the consequences of joblessness. Earnings and income data also overstate the dimensions of hardship. Among the millions with hourly earnings at or below the minimum wage level, the overwhelming majority are from multiple-earner, relatively affluent families. Most of those counted by the poverty statistics are elderly or handicapped or have family responsibilities which keep them out of the labor force, so the poverty statistics are by no means an accurate indicator of labor market pathologies.

Yet there are also many ways our social statistics underestimate the degree of labor-market-related hardship. The unemployment counts exclude the millions of fully employed workers whose wages are so low that their families remain in poverty. Low wages and repeated or prolonged unemployment frequently interact to undermine the capacity for self-support. Since the number experiencing joblessness at some time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed average annual unemployment, even though only a minority of the jobless in any month really suffer. For every person counted in the monthly unemployment tallies, there is another working part-time because of the inability to find full-time work, or else outside the labor force but wanting a job. Finally, income transfers in our country have always focused on the elderly, disabled, and dependent, neglecting the needs of the working poor, so that the dramatic expansion of cash and in-kind transfers does not necessarily mean that those failing in the labor market are adequately protected.

As a result of such contradictory evidence, it is uncertain whether those suffering seriously as a result of labor market problems number in the hundreds of thousands or the tens of millions, and, hence, whether high levels of joblessness can be tolerated or must be countered by job creation and economic stimulus. There is only one area of agreement in this debate—that the existing poverty, employment, and earnings statistics are inadequate for one their primary applications, measuring the consequences of labor market problems.
1. Which of the following is the principal topic of the passage?

(A) What causes labor market pathologies that result in suffering
(B) Why income measures are imprecise in measuring degrees of poverty
(C) Which of the currently used statistical procedures are the best for estimating the incidence of hardship that is due to unemployment
(D) Where the areas of agreement are among poverty, employment, and earnings figures
(E) How social statistics give an unclear picture of the degree of hardship caused by low wages and insufficient employment opportunities

2. The author uses “labor market problems” in lines 1-2 to refer to which of the following?

(A) The overall causes of poverty
(B) Deficiencies in the training of the work force
(C) Trade relationships among producers of goods
(D) Shortages of jobs providing adequate income
(E) Strikes and inadequate supplies of labor

3. The author contrasts the 1930’s with the present in order to show that

(A) more people were unemployed in the 1930’s
(B) unemployment now has less severe effects
(C) social programs are more needed now
(D) there now is a greater proportion of elderly and handicapped people among those in poverty
(E) poverty has increased since the 1930’s

4. Which of the following proposals best responds to the issues raised by the author?

(A) Innovative programs using multiple approaches should be set up to reduce the level of unemployment.
(B) A compromise should be found between the positions of those who view joblessness as an evil greater than economic control and those who hold the opposite view.
(C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering.
(D) Consideration should be given to the ways in which statistics can act as partial causes of the phenomena that they purport to measure.
(E) The labor force should be restructured so that it corresponds to the range of job vacancies.

5. The author’s purpose in citing those who are repeatedly unemployed during a twelve-month period is most probably to show that

(A) there are several factors that cause the payment of low wages to some members of the labor force
(B) unemployment statistics can underestimate the hardship resulting from joblessness
(C) recurrent inadequacies in the labor market can exist and can cause hardships for individual workers
(D) a majority of those who are jobless at any one time to not suffer severe hardship
(E) there are fewer individuals who are without jobs at some time during a year than would be expected on the basis of monthly unemployment figures

6. The author states that the mitigating effect of social programs involving income transfers on the income level of low-income people is often not felt by

(A) the employed poor
(B) dependent children in single-earner families
(C) workers who become disabled
(D) retired workers
(E) full-time workers who become unemployed

7. According to the passage, one factor that causes unemployment and earnings figures to overpredict the amount of economic hardship is the

(A) recurrence of periods of unemployment for a group of low-wage workers
(B) possibility that earnings may be received from more than one job per worker
(C) fact that unemployment counts do not include those who work for low wages and remain poor
(D) establishment of a system of record-keeping that makes it possible to compile poverty statistics
(E) prevalence, among low-wage workers and the unemployed, of members of families in which others are employed

8. The conclusion stated in lines 33-39 about the number of people who suffer as a result of forced idleness depends primarily on the point that

(A) in times of high unemployment, there are some people who do not remain unemployed for long
(B) the capacity for self-support depends on receiving moderate-to-high wages
(C) those in forced idleness include, besides the unemployed, both underemployed part-time workers and those not actively seeking work
(D) at different times during the year, different people are unemployed
(E) many of those who are affected by unemployment are dependents of unemployed workers

9. Which of the following, if true, is the best criticism of the author’s argument concerning why poverty statistics cannot properly be used to show the effects of problems in the labor market?

(A) A short-term increase in the number of those in poverty can indicate a shortage of jobs because the basic number of those unable to accept employment remains approximately constant.
(B) For those who are in poverty as a result of joblessness, there are social programs available that provide a minimum standard of living.
(C) Poverty statistics do not consistently agree with earnings statistics, when each is taken as a measure of hardship resulting from unemployment.
(D) The elderly and handicapped categories include many who previously were employed in the labor market.
(E) Since the labor market is global in nature, poor workers in one country are competing with poor workers in another with respect to the level of wages and the existence of jobs.

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Re: How many really suffer as a result of labor market problems?  [#permalink]

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13 Sep 2017, 09:24
7
1
How many really suffer as a result of labor market problems? This is one of the most critical yet contentious social policy questions. In many ways, our social statistics exaggerate the degree of hardship. Unemployment does not have the same dire consequences today as it did in the 1930’s when most of the unemployed were primary breadwinners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programs for those failing in the labor market. Increasing affluence, the rise of families with more than one wage earner, the growing predominance of secondary earners among the unemployed, and improved social welfare protection have unquestionably mitigated the consequences of joblessness. Earnings and income data also overstate the dimensions of hardship. Among the millions with hourly earnings at or below the minimum wage level, the overwhelming majority are from multiple-earner, relatively affluent families. Most of those counted by the poverty statistics are elderly or handicapped or have family responsibilities which keep them out of the labor force, so the poverty statistics are by no means an accurate indicator of labor market pathologies.

Yet there are also many ways our social statistics underestimate the degree of labor-market-related hardship.The unemployment counts exclude the millions of fully employed workers whose wages are so low that their families remain in poverty. Low wages and repeated or prolonged unemployment frequently interact to undermine the capacity for self-support. Since the number experiencing joblessness at some time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed average annual unemployment, even though only a minority of the jobless in any month really suffer. For every person counted in the monthly unemployment tallies, there is another working part-time because of the inability to find full-time work, or else outside the labor force but wanting a job. Finally, income transfers in our country have always focused on the elderly, disabled, and dependent, neglecting the needs of the working poor, so that the dramatic expansion of cash and in-kind transfers does not necessarily mean that those failing in the labor market are adequately protected.

As a result of such contradictory evidence, it is uncertain whether those suffering seriously as a result of labor market problems number in the hundreds of thousands or the tens of millions, and, hence, whether high levels of joblessness can be tolerated or must be countered by job creation and economic stimulus. There is only one area of agreement in this debate—that the existing poverty, employment, and earnings statistics are inadequate for one their primary applications, measuring the consequences of labor market problems.
1. Which of the following is the principal topic of the passage?
Throughout the passage author talks about the inefficiency of current methods to measure the problems related to labour market.
(A) What causes labor market pathologies that result in suffering -Out of scope
(B) Why income measures are imprecise in measuring degrees of poverty -"Why" is wrong. We are worried about "how" the method is inefficient in measuring not only degree of poverty BUT ALSO dimensions of hardship
(C) Which of the currently used statistical procedures are the best for estimating the incidence of hardship that is due to unemployment -We are definitely not finding the best
(D) Where the areas of agreement are among poverty, employment, and earnings figures -We are not finding the areas of agreement
(E) How social statistics give an unclear picture of the degree of hardship caused by low wages and insufficient employment opportunities -Correct.

2. The author uses “labor market problems” in lines 1-2 to refer to which of the following?
(A) The overall causes of poverty -No. We are not finding the overall causes of poverty. We are worried about the unemployment and joblessness.
(B) Deficiencies in the training of the work force -No
(C) Trade relationships among producers of goods -LOL?
(D) Shortages of jobs providing adequate income -Correct. Joblessness and unemployment are the problems of labour market
(E) Strikes and inadequate supplies of labor -Are you kidding me?

3. The author contrasts the 1930’s with the present in order to show that
The part of the passage that supports this solution is highlighted in green in the passage.
(A) more people were unemployed in the 1930’s -No
(B) unemployment now has less severe effects -Correct
(C) social programs are more needed now -No
(D) there now is a greater proportion of elderly and handicapped people among those in poverty -No
(E) poverty has increased since the 1930’s -No

4. Which of the following proposals best responds to the issues raised by the author?
"There is only one area of agreement in this debate—that the existing poverty, employment, and earnings statistics are inadequate" --> This is the conclusion of the passage.
(A) Innovative programs using multiple approaches should be set up to reduce the level of unemployment. -Passage is not about reducing the unemployment
(B) A compromise should be found between the positions of those who view joblessness as an evil greater than economic control and those who hold the opposite view. -We are not finding a compromise
(C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering. -Correct. This will resolve the inefficiency as suggested in the conclusion.
(D) Consideration should be given to the ways in which statistics can act as partial causes of the phenomena that they purport to measure. -No
(E) The labor force should be restructured so that it corresponds to the range of job vacancies. -What labour force is being mentioned here?

5. The author’s purpose in citing those who are repeatedly unemployed during a twelve-month period is most probably to show that
Supporting text is highlighted in yellow in the passage.
(A) there are several factors that cause the payment of low wages to some members of the labor force -No
(B) unemployment statistics can underestimate the hardship resulting from joblessness -This is directly from the passage.
(C) recurrent inadequacies in the labor market can exist and can cause hardships for individual workers -No
(D) a majority of those who are jobless at any one time to not suffer severe hardship -No
(E) there are fewer individuals who are without jobs at some time during a year than would be expected on the basis of monthly unemployment figures -No

6. The author states that the mitigating effect of social programs involving income transfers on the income level of low-income people is often not felt by
"Finally, income transfers in our country have always focused on the elderly, disabled, and dependent, neglecting the needs of the working poor"
(A) the employed poor -Correct. Because these people are excluded as per the line above.
(B) dependent children in single-earner families -Dependent are focused on by the system
(C) workers who become disabled -Disabled are focused on by the system
(D) retired workers -Retired are focused on by the system
(E) full-time workers who become unemployed -Unemployed are ofcourse focused on by the system

7. According to the passage, one factor that causes unemployment and earnings figures to overpredict the amount of economic hardship is the
"Increasing affluence, the rise of families with more than one wage earner, the growing predominance of secondary earners among the unemployed, and improved social welfare protection have unquestionably mitigated the consequences of joblessness"
(A) recurrence of periods of unemployment for a group of low-wage workers -This under-predicts the fact
(B) possibility that earnings may be received from more than one job per worker -More than one job per worker is nowhere mentioned in the passage
(C) fact that unemployment counts do not include those who work for low wages and remain poor -This under-predicts the fact
(D) establishment of a system of record-keeping that makes it possible to compile poverty statistics -No such system was established
(E) prevalence, among low-wage workers and the unemployed, of members of families in which others are employed -As per the copied text above, families with multiple earners are one of the reasons that the indices over-estimate the hardship

8. The conclusion stated in lines 33-39 about the number of people who suffer as a result of forced idleness depends primarily on the point that
"Since the number experiencing joblessness at some time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed average annual unemployment"
(A) in times of high unemployment, there are some people who do not remain unemployed for long -No
(B) the capacity for self-support depends on receiving moderate-to-high wages -No
(C) those in forced idleness include, besides the unemployed, both underemployed part-time workers and those not actively seeking work -We are not worried about the sub-groups in this group
(D) at different times during the year, different people are unemployed - Correct.
(E) many of those who are affected by unemployment are dependents of unemployed workers -No

9. Which of the following, if true, is the best criticism of the author’s argument concerning why poverty statistics cannot properly be used to show the effects of problems in the labor market?
(A) A short-term increase in the number of those in poverty can indicate a shortage of jobs because the basic number of those unable to accept employment remains approximately constant. -Lets keep this and analyse other options.
(B) For those who are in poverty as a result of joblessness, there are social programs available that provide a minimum standard of living. -First of all this is out of scope of the question. Secondly, if it were to be somehow connected to the argument, it would have weaken the argument present in the question
(C) Poverty statistics do not consistently agree with earnings statistics, when each is taken as a measure of hardship resulting from unemployment. -This is a fact stated in the passage.
(D) The elderly and handicapped categories include many who previously were employed in the labor market. -We are not worried about who constitute the categories
(E) Since the labor market is global in nature, poor workers in one country are competing with poor workers in another with respect to the level of wages and the existence of jobs. -The passage doesn't talk about the international movement of labour.
Out of all the options in question 9, only "A" remains that can be an answer, since in short term it can be a good indicator of the number of shortages of jobs.

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Re: How many really suffer as a result of labor market problems?  [#permalink]

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16 Jan 2010, 15:25
Okay, I just took some NyQuil so it's very difficult for me to concentrate but these are my answers.

E
D
B
B
B
A
E
C
A

For # 7 I figured the answer was E because it's the only one mentioned in the first paragraph where the author talks about it being overpredicted. Look here:
Quote:
Earnings and income data also overstate the dimensions of hardship. Among the millions with hourly earnings at or below the minimum wage level, the overwhelming majority are from multiple-earner, relatively affluent families."
There's E to me for number 7.

For #9, I was and still am kind of torn between A and D but I can't figure out conclusively if D doesn't criticism the argument. In my opinion A does because it links an increase in the poverty population with an indication of a shortage of jobs. If that's true then maybe poverty statistics are of some use thus negating his claim that you cannot use them.

If this didn't make sense or I'm wrong then blame it on the Al-Al-Al-Al-Al-Alcohol in my NyQuil of which I think I have a very low tolerance.
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2012, 06:15
1
1
CORRECT ANSWER: 1E 2D 3B 4C 5B 6A 7E 8D 9A
1.E
The passage shows us a clear explication of how social statistics underestimate or exaggerate the degree of hardship.
We can find the information at the very first beginning of paragraph 1 and 2.
“In many ways, our social statistics exaggerate the degree of hardship” and “Yet there are also many ways our social statistics underestimate the degree of labor-market-related hardship.”

2.D
By elimination
3.B
“Unemployment does not have the same dire consequences today as it did in the 1930’s when most of the unemployed were primary breadwinners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programs for those failing in the labor market. Increasing affluence, the rise of families with more than one wage earner, the growing predominance of secondary earners among the unemployed, and improved social welfare protection have unquestionably mitigated the consequences of joblessness.”

4.C
The conventional statistical indices failed to cover all determinants that truly reflected the dimensions of hardship of unemployment.

5.B
Yet there are also many ways our social statistics underestimate the degree of labor-market-related hardship.

6.A
Only the employed poor whose wages are at or below the minimum wage level is not counted in the poverty statistics.

7.E
The degree of hardship of the unemployment whose family is affluent is exaggerated.

8.D
Eliminate A B and E. In C, the fact that unemployment is not actively seeking work is wrong.

9.A
The main key word in the question is “the best criticism”.
All other options can be eliminated out.
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 04:06
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 04:12
mitra1 wrote:

hi , how are u ? i m reading the text now and i m mix-up about some meaning
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 04:27
sasan wrote:
mitra1 wrote:

hi , how are u ? i m reading the text now and i m mix-up about some meaning

which words or parts you do not understand?
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 09:07
mitra1 wrote:
sasan wrote:
mitra1 wrote:

hi , how are u ? i m reading the text now and i m mix-up about some meaning

which words or parts you do not understand?

do you understand what does the writer mean by this? "our social statistics exaggerate the degree of hardship" ? i know what is the meaning of "exaggerate" but i dont know what is the exact meaning of this in this sentence. thank you.
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 09:23
I have searched many times this word(contentious) in online dictionary ( English - Persian ) but i didn't understand the exact meaning of it
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 09:46
it means (causing or likely to cause an argument; controversial) mishe baese dava ya bahso jadal shodan. if you want more specific meaning or examples in the sentences i suggest you try this dictionary online synonym dictionary this dictionary will help you to have words with the same meaning of contentious". also if you want to check its pronunciation you can use in online oxford dictionary
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 09:46
sasan wrote:
I have searched many times this word(contentious) in online dictionary ( English - Persian ) but i didn't understand the exact meaning of it

it means (causing or likely to cause an argument; controversial) mishe baese dava ya bahso jadal shodan. if you want more specific meaning or examples in the sentences i suggest you try this dictionary online synonym dictionary this dictionary will help you to have words with the same meaning of contentious". also if you want to check its pronunciation you can use in online oxford dictionary
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 10:02
exaggerate means something negative. i think it means not o be satisfy about the research they did about employment. what is your idea?
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 10:12
mitra1 wrote:
exaggerate means something negative. i think it means not o be satisfy about the research they did about employment. what is your idea?

ooo , OK i understand some how the meaning of this sentence and i will describe it by Persian language ( mige ke amare mobaleghe amizi az sakhtiye kar dar amarhaye ejtemaii neshon dadeh shodeh ast ) do you understand and do you agree with me about the consent of this sentence ?
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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11 Sep 2014, 10:17
mitra1 wrote:
exaggerate means something negative. i think it means not o be satisfy about the research they did about employment. what is your idea?

yes i agree with you but it is not about their satisfying it is about the result of their statistic so, i think the result of their statistic about hardship was not real and it is more than what it should be. i would like to know your idea.
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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19 Dec 2016, 10:09
Got 7 correct.... Can anybody please explain the ans of questions 8 and 9? They came out to be too confusing to me....
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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20 Dec 2016, 00:02
1
arunavamunshi1988 wrote:
Got 7 correct.... Can anybody please explain the ans of questions 8 and 9? They came out to be too confusing to me....

mymygmat2016 arunavamunshi1988

for 9th Question my reasoning as below,

the author thinks that the current statistics cannot properly be used to indicate actual poverty because they either over represent or under represent.
Criticism for it should be excatly opposite i.e., the measures can be used in some ways to predict poverty.
Option A is one such answer which shows that the current poverty measures can still be used .

As for question 8 even i am not sure .
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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22 Nov 2018, 18:12
P1 - labor market problems? why 1930 dnt have? why now ?
P2 - problems - labor-market-related hardship.
P3 - concluding what is in center of the problems

1. Which of the following is the principal topic of the passage?

(E) How social statistics give an unclear picture of the degree of hardship caused by low wages and insufficient employment opportunities --- this one is covering full passage. I have selected A too.but this one is better with scope.

----------------------------------------------

2. The author uses “labor market problems” in lines 1-2 to refer to which of the following?

(D) Shortages of jobs providing adequate income

---------------------------------------------

3. The author contrasts the 1930’s with the present in order to show that

Unemployment does not have the same dire consequences today as it did in the 1930’s when most of the unemployed were primary breadwinners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programs for those failing in the labor market.

(B) unemployment now has less severe effects

---------------------------------------------

4. Which of the following proposals best responds to the issues raised by the author?

(C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering.----- The unemployment counts exclude the millions of fully employed workers whose wages are so low that their families remain in poverty.

---------------------------------------------
5. The author’s purpose in citing those who are repeatedly unemployed during a twelve-month period is most probably to show that

(B) unemployment statistics can underestimate the hardship resulting from joblessness

Since the number experiencing joblessness at some time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed average annual unemployment, even though only a minority of the jobless in any month really suffer

--------------------------------------------

6. The author states that the mitigating effect of social programs involving income transfers on the income level of low-income people is often not felt by

income transfers in our country have always focused on the elderly, disabled, and dependent

(A) the employed poor - correct..
(B) dependent children in single-earner families - dependent
(C) workers who become disabled - disabled
(D) retired workers - elderly/dependent
(E) full-time workers who become unemployed - dependent/elderly

-------------------------------------------------
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How many really suffer as a result of labor market problems?  [#permalink]

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24 Nov 2018, 01:48
8 correct in 16 mins 30 seconds, including 5 mins to read.
Could not figure the last question 9

Para 1- social statistics exaggerate the degree of hardship
Para 2- social statistics underestimate the degree of labor-market-related hardship.
Para 3 - contradictory evidence ; ONLY agreement - the existing poverty, employment, and earnings statistics are inadequate for one their primary applications, measuring the consequences of labor market problems.

1. Which of the following is the principal topic of the passage?

(A) What causes labor market pathologies that result in suffering
(B) Why income measures are imprecise in measuring degrees of poverty
(C) Which of the currently used statistical procedures are the best for estimating the incidence of hardship that is due to unemployment
(D) Where the areas of agreement are among poverty, employment, and earnings figures
(E) How social statistics give an unclear picture of the degree of hardship caused by low wages and insufficient employment opportunities - Correct

There is only one area of agreement in this debate—that the existing poverty, employment, and earnings statistics are inadequate for one their primary applications, measuring the consequences of labor market problems.

2. The author uses “labor market problems” in lines 1-2 to refer to which of the following?

(A) The overall causes of poverty - Incorrect
(B) Deficiencies in the training of the work force - Irrelevant - no such deficiencies are talked about that can be solved using training
(C) Trade relationships among producers of goods - Irrelevant
(D) Shortages of jobs providing adequate income - Correct
(E) Strikes and inadequate supplies of labor - Irrelevant

3. The author contrasts the 1930’s with the present in order to show that
Unemployment does not have the same dire consequences today as it did in the 1930’s when most of the unemployed were primary breadwinners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programs for those failing in the labor market.

(A) more people were unemployed in the 1930’s
(B) unemployment now has less severe effects - Correct
(C) social programs are more needed now
(D) there now is a greater proportion of elderly and handicapped people among those in poverty
(E) poverty has increased since the 1930’s

4. Which of the following proposals best responds to the issues raised by the author?

(A) Innovative programs using multiple approaches should be set up to reduce the level of unemployment.
(B) A compromise should be found between the positions of those who view joblessness as an evil greater than economic control and those who hold the opposite view.
(C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering. - Correct
(D) Consideration should be given to the ways in which statistics can act as partial causes of the phenomena that they purport to measure.
(E) The labor force should be restructured so that it corresponds to the range of job vacancies.

The unemployment counts exclude the millions of fully employed workers whose wages are so low that their families remain in poverty.
There is only one area of agreement in this debate—that the existing poverty, employment, and earnings statistics are inadequate for one their primary applications, measuring the consequences of labor market problems.

5. The author’s purpose in citing those who are repeatedly unemployed during a twelve-month period is most probably to show that

(A) there are several factors that cause the payment of low wages to some members of the labor force
(B) unemployment statistics can underestimate the hardship resulting from joblessness - Correct

Since the number experiencing joblessness at some time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed average annual unemployment, even though only a minority of the jobless in any month really suffer.

(C) recurrent inadequacies in the labor market can exist and can cause hardships for individual workers
(D) a majority of those who are jobless at any one time to not suffer severe hardship
(E) there are fewer individuals who are without jobs at some time during a year than would be expected on the basis of monthly unemployment figures

6. The author states that the mitigating effect of social programs involving income transfers on the income level of low-income people is often not felt by

Finally, income transfers in our country have always focused on the elderly, disabled, and dependent, neglecting the needs of the working poor, so that the dramatic expansion of cash and in-kind transfers does not necessarily mean that those failing in the labor market are adequately protected.

(A) the employed poor - Correct
(B) dependent children in single-earner families
(C) workers who become disabled
(D) retired workers
(E) full-time workers who become unemployed

7. According to the passage, one factor that causes unemployment and earnings figures to overpredict the amount of economic hardship is the

(A) recurrence of periods of unemployment for a group of low-wage workers
(B) possibility that earnings may be received from more than one job per worker
(C) fact that unemployment counts do not include those who work for low wages and remain poor
(D) establishment of a system of record-keeping that makes it possible to compile poverty statistics
(E) prevalence, among low-wage workers and the unemployed, of members of families in which others are employed - Correct

Earnings and income data also overstate the dimensions of hardship. Among the millions with hourly earnings at or below the minimum wage level, the overwhelming majority are from multiple-earner, relatively affluent families.

8. The conclusion stated in lines 33-39 about the number of people who suffer as a result of forced idleness depends primarily on the point that

(A) in times of high unemployment, there are some people who do not remain unemployed for long
(B) the capacity for self-support depends on receiving moderate-to-high wages
(C) those in forced idleness include, besides the unemployed, both underemployed part-time workers and those not actively seeking work
(D) at different times during the year, different people are unemployed - Correct
Average unemployment in any month in any month= x
Number experiencing joblessness at some time during the year = 12x (approximately)

Since the number experiencing joblessness at some time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed average annual unemployment, even though only a minority of the jobless in any month really suffer. --> I think the assumption here is that in general, the same people will NOT be unemployed for long periods of time and thus only a minority of the unemployed in any month really suffer
1. Out of the average number of unemployed in any month(X), say around .99x keeps on changing --> So these people won't suffer since they will be able to manage
2. But if .99x are the same people unemployed throughout the year , then all of these will suffer.

(E) many of those who are affected by unemployment are dependents of unemployed workers

9. Which of the following, if true, is the best criticism of the author’s argument concerning why poverty statistics cannot properly be used to show the effects of problems in the labor market?

(A) A short-term increase in the number of those in poverty can indicate a shortage of jobs because the basic number of those unable to accept employment remains approximately constant.
(B) For those who are in poverty as a result of joblessness, there are social programs available that provide a minimum standard of living.
(C) Poverty statistics do not consistently agree with earnings statistics, when each is taken as a measure of hardship resulting from unemployment.
(D) The elderly and handicapped categories include many who previously were employed in the labor market.
(E) Since the labor market is global in nature, poor workers in one country are competing with poor workers in another with respect to the level of wages and the existence of jobs.

AjiteshArun , GMATNinja , MagooshExpert , GMATGuruNY , VeritasKarishma , VeritasPrepBrian , MartyMurray , other experts - can you please provide an explanation for question 9 and check whether my reasosing for question 8 is fine ?
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Re: How many really suffer as a result of labor market problems?  [#permalink]

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24 Nov 2018, 02:55
https://gmatclub.com/forum/how-many-rea ... l#p1925351

Probably this post covers your question in details. As this is 1988 OG question, I am tagging workout too for Post with OEs.
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Reading comprehension | Critical Reasoning | Absolute Phrases | Subjunctive Mood

Re: How many really suffer as a result of labor market problems? &nbs [#permalink] 24 Nov 2018, 02:55
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