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 E 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 D 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 B 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 C 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 B 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 A 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 E 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 D 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 A 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.

A is the correct answer because it directly challenges the premise that poverty statistics can't show labor market problems. It does this by showing a specific scenario where poverty statistics DO reflect labor market issues (when there's a short-term increase in poverty while the number of those unable to work remains stable, this increase can be attributed to labor market problems). Let's understand this with an example: Imagine a city where: There's a constant baseline of people who CANNOT work (let's say 1000 people): Severely disabled individuals People with full-time caregiving responsibilities Others permanently unable to work Now let's say poverty numbers suddenly increase from 2000 to 2500 people Since we know the number of people who CAN'T work stayed at 1000 (remained "constant"), this means: The extra 500 people who fell into poverty must have come from the group who CAN work Therefore, this increase likely indicates problems in the job market (people who want to work but can't find jobs) This is why it's a good criticism of the author's argument: If the author claimed "poverty statistics can't show labor market problems" This counters by saying "Actually, when we control for those who can't work, changes in poverty numbers CAN indicate job market problems" It's like having a controlled experiment: The "constant" group (those unable to work) is your control Any significant changes in poverty must therefore come from the other group (those able to work) This makes it possible to use poverty statistics to indicate labor market problems

Question 1: Principal Topic of the Passage Correct Answer: (E) How social statistics give an unclear picture of the degree of hardship caused by low wages and insufficient employment opportunities. Explanation: The passage discusses how social statistics both exaggerate and underestimate labor market-related hardship, leading to an unclear understanding of the actual suffering caused by joblessness and low wages. The author highlights the limitations and contradictions in unemployment, earnings, and poverty statistics, making (E) the best choice. Elimination of Wrong Options: (A) What causes labor market pathologies that result in suffering → Incorrect because the passage does not focus on identifying the causes of labor market issues but rather on the misrepresentation of hardship by social statistics. (B) Why income measures are imprecise in measuring degrees of poverty → Too narrow. The passage discusses not just income measures but also unemployment and poverty statistics. (C) Which of the currently used statistical procedures are the best for estimating the incidence of hardship that is due to unemployment → The passage does not compare statistical procedures or advocate for a particular one; it critiques the inadequacy of current statistics. (D) Where the areas of agreement are among poverty, employment, and earnings figures → The only area of agreement mentioned is that existing statistics are inadequate, but this is not the central focus of the passage. Question 2: Meaning of "Labor Market Problems" Correct Answer: (D) Shortages of jobs providing adequate income. Explanation: The passage discusses unemployment, low wages, and joblessness as key labor market issues, particularly emphasizing that many people are employed but still suffer due to low wages. This aligns with (D), which refers to the lack of well-paying jobs. Elimination of Wrong Options: (A) The overall causes of poverty → Too broad. The passage focuses on labor market issues as one factor in poverty, not all causes of poverty. (B) Deficiencies in the training of the workforce → Not mentioned. The passage does not discuss worker skills or training as a labor market issue. (C) Trade relationships among producers of goods → Irrelevant. The passage does not discuss trade or economic relationships between producers. (E) Strikes and inadequate supplies of labor → Not the focus. The passage does not mention strikes or a lack of workers; it discusses insufficient job opportunities and wages. Question 3: Contrasting the 1930s with the Present Correct Answer: (B) Unemployment now has less severe effects. Explanation: The passage contrasts the 1930s with today by pointing out that joblessness had harsher consequences back then. In the 1930s, primary breadwinners were typically the ones unemployed, incomes were closer to subsistence levels, and there were fewer social safety nets. Today, dual-income families, social programs, and economic affluence have reduced the severity of unemployment’s effects. This supports (B). Elimination of Wrong Options: (A) More people were unemployed in the 1930s → The passage does not focus on the absolute number of unemployed people but rather the effects of unemployment. (C) Social programs are more needed now → The passage argues that social programs now mitigate hardship, not that they are more needed than before. (D) There now is a greater proportion of elderly and handicapped people among those in poverty → This is mentioned later in the passage but is not part of the contrast with the 1930s. (E) Poverty has increased since the 1930s → The passage does not claim this. Instead, it suggests that hardship from joblessness has been mitigated. Question 4: Best Proposal to Address the Author’s Issues Correct Answer: (C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering. Explanation: The passage emphasizes how existing statistics both overestimate and underestimate labor market hardship, making it difficult to determine the true extent of suffering. The best solution to this problem is to develop more accurate statistical measures, making (C) the best choice. Elimination of Wrong Options: (A) Innovative programs using multiple approaches should be set up to reduce the level of unemployment → While job creation is important, the passage focuses on measurement problems rather than proposing specific policies to reduce unemployment. (B) A compromise should be found between opposing views on joblessness and economic control → The passage does not present a debate between two opposing ideological camps, so this is irrelevant. (D) Consideration should be given to the ways in which statistics can act as partial causes of the phenomena that they purport to measure → The passage does not suggest that statistics cause labor market problems, only that they misrepresent them. (E) The labor force should be restructured so that it corresponds to the range of job vacancies → The passage does not discuss labor force restructuring as a solution. Question 5: Purpose of Citing Repeated Unemployment Correct Answer: (B) Unemployment statistics can underestimate the hardship resulting from joblessness. Explanation: The passage points out that unemployment counts often fail to capture the true extent of hardship, as many workers experience repeated joblessness throughout the year. This means the official unemployment rate may not reflect the total number of people suffering from labor market instability, supporting (B). Elimination of Wrong Options: (A) There are several factors that cause the payment of low wages to some members of the labor force → The passage mentions low wages but does not attribute them to multiple causes in this context. (C) Recurrent inadequacies in the labor market can exist and can cause hardships for individual workers → While somewhat true, the emphasis is on statistical underestimation, making (B) the stronger choice. (D) A majority of those who are jobless at any one time do not suffer severe hardship → The passage acknowledges that only a minority suffer severe hardship at any one time, but that many more suffer over time. The point being made is about statistical underestimation. (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 → The passage actually suggests the opposite—that more people experience joblessness over a year than monthly statistics indicate. Question 6: Who Does Not Feel the Effect of Social Programs? Correct Answer: (A) The employed poor. Explanation: The passage states that income transfers in the U.S. primarily focus on the elderly, disabled, and dependents, while neglecting the needs of the working poor. This means that the employed poor often do not feel the benefit of social programs, making (A) the best choice. Elimination of Wrong Options: (B) Dependent children in single-earner families → Dependent children are typically covered by social programs such as welfare, food assistance, and child support. (C) Workers who become disabled → The passage acknowledges that social programs assist the disabled. (D) Retired workers → Retirees benefit from programs like Social Security and pensions. (E) Full-time workers who become unemployed → Unemployed workers are often eligible for unemployment benefits, which are a form of income transfer. Question 7: Factor That Causes Overprediction of Hardship Correct Answer: (E) Prevalence, among low-wage workers and the unemployed, of members of families in which others are employed. Explanation: The passage argues that many individuals with low wages or unemployment come from households where others earn sufficient income. This means that unemployment and earnings figures can exaggerate the degree of hardship because they do not account for household wealth and multiple-income families. Elimination of Wrong Options: (A) Recurrence of periods of unemployment for a group of low-wage workers → This would contribute to underestimating hardship, not overpredicting it. (B) Possibility that earnings may be received from more than one job per worker → The passage does not discuss multiple jobholders inflating statistics. (C) Fact that unemployment counts do not include those who work for low wages and remain poor → This would lead to an underestimation, not an overprediction, of hardship. (D) Establishment of a system of record-keeping that makes it possible to compile poverty statistics → The passage critiques the accuracy of poverty statistics but does not suggest that record-keeping itself overpredicts hardship. Question 8: Conclusion on Forced Idleness Correct Answer: (D) At different times during the year, different people are unemployed. Explanation: The passage states that the number of people experiencing joblessness throughout the year is several times higher than the monthly unemployment figures. This suggests that unemployment is not static —different people become unemployed at different times, making official statistics an underestimate. Elimination of Wrong Options: (A) In times of high unemployment, there are some people who do not remain unemployed for long. → The passage focuses on how many people experience joblessness, not the duration of unemployment. (B) The capacity for self-support depends on receiving moderate-to-high wages. → The passage is about unemployment underestimation , not income levels. (C) Those in forced idleness include, besides the unemployed, both underemployed part-time workers and those not actively seeking work. → While true, it does not directly explain why unemployment figures underestimate hardship due to joblessness occurring at different times. (E) Many of those who are affected by unemployment are dependents of unemployed workers. → The passage is about workers , not their dependents , who are not part of the labor force. Question 9: Best Criticism of the Author’s Argument on Poverty Statistics Correct Answer: (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. Explanation: The author's argument is that poverty statistics do not accurately reflect labor market hardship because they include many non-workers (e.g., elderly, disabled). However, a counterargument is that changes in poverty levels—particularly short-term increases—can still indicate job shortages, since the non-working population remains relatively stable. This challenges the claim that poverty statistics are not useful for analyzing labor market problems. Elimination of Wrong 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. → This does not refute the claim that poverty statistics misrepresent labor market problems. (C) Poverty statistics do not consistently agree with earnings statistics, when each is taken as a measure of hardship resulting from unemployment. → This supports the passage’s argument rather than challenging it. (D) The elderly and handicapped categories include many who previously were employed in the labor market. → This does not directly challenge the author’s claim that poverty statistics misrepresent labor market hardship. (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. → This is an external factor and does not specifically refute the argument about poverty statistics.

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How many really suffer as a result of labor market problems? This is o

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woohoo921

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Can an expert kindly explain why A is the correct answer to question 9? I chose B because the author seemed to say that there were limited social programs available now. Thank you!

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woohoo921

Can an expert kindly explain why A is the correct answer to question 9? I chose B because the author seemed to say that there were limited social programs available now. Thank you!

The author's discussion on why poverty statistics don't show problems in the labor market can be found in the last sentence of the first paragraph:

Quote:

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.

What does that mean?

It's saying "We can't use poverty stats to know about problems in the labor markets. Most people in the 'poverty' category have reasons that prevent them from working... that is, there is *nothing* that could make them work... so we can't use that number to tell us anything (since we're concerned with people who CAN work)."

Question 9 asks us to weaken this argument.

So basically, I want to say, "Actually, author, there might be a reason poverty statistics CAN help us know something about labor issues in the market."

Answer A achieves this goal. If the 'poverty' rate suddenly spikes, A indicates that "It's not because there are suddenly more people in that category who are unable to work. That number is actually pretty constant. So a spike in poverty rate means an influx of people into poverty who CAN work. That might tell us there is trouble in the labor market."

Answer B says that there are social programs for people who fall into poverty due to joblessness, but that doesn't help us argue that maybe the poverty stats are useful to determine labor market issues.

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woohoo921

Can an expert kindly explain why A is the correct answer to question 9? I chose B because the author seemed to say that there were limited social programs available now. Thank you!

The author's discussion on why poverty statistics don't show problems in the labor market can be found in the last sentence of the first paragraph:

Quote:

Hi ReedArnoldMPREP

Please can you explain why Option C is wrong.

Thanks

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Hi Experts, GMATNinja AndrewN KarishmaB
MartyTargetTestPrep

Please can you help explain the relevant part of the passage "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".

As per above please advise why the ans to QS 8 is Option D.

Thanks

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KittyDoodles

ReedArnoldMPREP

woohoo921

Can an expert kindly explain why A is the correct answer to question 9? I chose B because the author seemed to say that there were limited social programs available now. Thank you!

The author's discussion on why poverty statistics don't show problems in the labor market can be found in the last sentence of the first paragraph:

Quote:

Hi ReedArnoldMPREP

Please can you explain why Option C is wrong.

Thanks

See my above discussion for more analysis on what we want the answer to do. It needs to show that poverty statistics CAN be useful to show effects of problems in labor market, despite the author's arguments for why poverty statistics are NOT useful to show effects of labor market problems.

C says:

Quote:

(C) Poverty statistics do not consistently agree with earnings statistics, when each is taken as a measure of hardship resulting from unemployment.

This says that, when we use them to determine how 'bad' things have gotten due to unemployment, there are differences between poverty statistics and earning statistics. But that doesn't mean poverty statistics are BETTER or USEFUL, either objectively or relative to earning statistics. It just says the 'hardship results' we get when measuring 'poverty' do not agree with the 'hardship results' we get when measuring 'earnings.'

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KittyDoodles

It's a tricky sentence.

Let's understand it in pieces:

"The number experiencing joblessness at some time during the year" means the people who were unemployed for some time during a 12 month period.

"The number unemployed in any one month" is the number that is unemployed in one month.

The sentence says that the first number exceeds the second.

So basically, the number of people who are employed AT SOME POINT IN A YEAR is higher than the number unemployed in ANY ONE MONTH.

An example can help me understand this.

If there are 10 people unemployed each month, but it's always 10 *different* people, then there are 100 people, overall, who are unemployed at some point throughout the year, which is more people the unemployment rate per month ('10') might indicate.

The rest of the sentence says that more people can suffer than average annual unemployment might indicate, and now that I've laid out these two numbers, I can maybe see why. If 2 of those people suffer every month, then by year's end, 24 people have suffered, even though the unemployment rate was '10,' and even though only a minority of the unemployed ever 'suffered.'

All of this should explain why D is the right answer. Since DIFFERENT PEOPLE are counted as 'unemployed' throughout the year, more people 'suffer' from unemployment than the 'rate' might suggest.

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I am not able to understand answer option 9. Can someone explain?

Hi Diksha123456789

In Question 9 we need to choose an option that criticizes or weakens the author's argument that is:- "poverty statistics cannot properly be used to show the effects of problems in the labor market as most of those counted by the poverty statistics are elderly or handicapped or have family responsibilities which keep them out of the labor force"

now option A which is the correct ans says that - because the number of these people (handicapped , elderly etc) will remain constant in short-term, if poverty increases it can indicate that more people that had jobs became jobless or in other words there might be a shortage of jobs. so that means this indicator still can be used and it weakens the reasoning used by author.

let me know if it helps!

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A is the correct answer because it directly challenges the premise that poverty statistics can't show labor market problems. It does this by showing a specific scenario where poverty statistics DO reflect labor market issues (when there's a short-term increase in poverty while the number of those unable to work remains stable, this increase can be attributed to labor market problems).

Let's understand this with an example:
Imagine a city where:

There's a constant baseline of people who CANNOT work (let's say 1000 people):
- Severely disabled individuals
- People with full-time caregiving responsibilities
- Others permanently unable to work
Now let's say poverty numbers suddenly increase from 2000 to 2500 people
Since we know the number of people who CAN'T work stayed at 1000 (remained "constant"), this means:
- The extra 500 people who fell into poverty must have come from the group who CAN work
- Therefore, this increase likely indicates problems in the job market (people who want to work but can't find jobs)

This is why it's a good criticism of the author's argument:

If the author claimed "poverty statistics can't show labor market problems"
This counters by saying "Actually, when we control for those who can't work, changes in poverty numbers CAN indicate job market problems"

It's like having a controlled experiment:

The "constant" group (those unable to work) is your control
Any significant changes in poverty must therefore come from the other group (those able to work)
This makes it possible to use poverty statistics to indicate labor market problems

Diksha123456789

I am not able to understand answer option 9. Can someone explain?

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Question 1: Principal Topic of the Passage
Correct Answer: (E) How social statistics give an unclear picture of the degree of hardship caused by low wages and insufficient employment opportunities.
Explanation:
The passage discusses how social statistics both exaggerate and underestimate labor market-related hardship, leading to an unclear understanding of the actual suffering caused by joblessness and low wages. The author highlights the limitations and contradictions in unemployment, earnings, and poverty statistics, making (E) the best choice.
Elimination of Wrong Options:

(A) What causes labor market pathologies that result in suffering → Incorrect because the passage does not focus on identifying the causes of labor market issues but rather on the misrepresentation of hardship by social statistics.
(B) Why income measures are imprecise in measuring degrees of poverty → Too narrow. The passage discusses not just income measures but also unemployment and poverty statistics.
(C) Which of the currently used statistical procedures are the best for estimating the incidence of hardship that is due to unemployment → The passage does not compare statistical procedures or advocate for a particular one; it critiques the inadequacy of current statistics.
(D) Where the areas of agreement are among poverty, employment, and earnings figures → The only area of agreement mentioned is that existing statistics are inadequate, but this is not the central focus of the passage.

Question 2: Meaning of "Labor Market Problems"
Correct Answer: (D) Shortages of jobs providing adequate income.
Explanation:
The passage discusses unemployment, low wages, and joblessness as key labor market issues, particularly emphasizing that many people are employed but still suffer due to low wages. This aligns with (D), which refers to the lack of well-paying jobs.
Elimination of Wrong Options:

(A) The overall causes of poverty → Too broad. The passage focuses on labor market issues as one factor in poverty, not all causes of poverty.
(B) Deficiencies in the training of the workforce → Not mentioned. The passage does not discuss worker skills or training as a labor market issue.
(C) Trade relationships among producers of goods → Irrelevant. The passage does not discuss trade or economic relationships between producers.
(E) Strikes and inadequate supplies of labor → Not the focus. The passage does not mention strikes or a lack of workers; it discusses insufficient job opportunities and wages.

Question 3: Contrasting the 1930s with the Present
Correct Answer: (B) Unemployment now has less severe effects.
Explanation:
The passage contrasts the 1930s with today by pointing out that joblessness had harsher consequences back then. In the 1930s, primary breadwinners were typically the ones unemployed, incomes were closer to subsistence levels, and there were fewer social safety nets. Today, dual-income families, social programs, and economic affluence have reduced the severity of unemployment’s effects. This supports (B).
Elimination of Wrong Options:

(A) More people were unemployed in the 1930s → The passage does not focus on the absolute number of unemployed people but rather the effects of unemployment.
(C) Social programs are more needed now → The passage argues that social programs now mitigate hardship, not that they are more needed than before.
(D) There now is a greater proportion of elderly and handicapped people among those in poverty → This is mentioned later in the passage but is not part of the contrast with the 1930s.
(E) Poverty has increased since the 1930s → The passage does not claim this. Instead, it suggests that hardship from joblessness has been mitigated.

Question 4: Best Proposal to Address the Author’s Issues
Correct Answer: (C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering.
Explanation:
The passage emphasizes how existing statistics both overestimate and underestimate labor market hardship, making it difficult to determine the true extent of suffering. The best solution to this problem is to develop more accurate statistical measures, making (C) the best choice.
Elimination of Wrong Options:

(A) Innovative programs using multiple approaches should be set up to reduce the level of unemployment → While job creation is important, the passage focuses on measurement problems rather than proposing specific policies to reduce unemployment.
(B) A compromise should be found between opposing views on joblessness and economic control → The passage does not present a debate between two opposing ideological camps, so this is irrelevant.
(D) Consideration should be given to the ways in which statistics can act as partial causes of the phenomena that they purport to measure → The passage does not suggest that statistics cause labor market problems, only that they misrepresent them.
(E) The labor force should be restructured so that it corresponds to the range of job vacancies → The passage does not discuss labor force restructuring as a solution.

Question 5: Purpose of Citing Repeated Unemployment
Correct Answer: (B) Unemployment statistics can underestimate the hardship resulting from joblessness.
Explanation:
The passage points out that unemployment counts often fail to capture the true extent of hardship, as many workers experience repeated joblessness throughout the year. This means the official unemployment rate may not reflect the total number of people suffering from labor market instability, supporting (B).
Elimination of Wrong Options:

(A) There are several factors that cause the payment of low wages to some members of the labor force → The passage mentions low wages but does not attribute them to multiple causes in this context.
(C) Recurrent inadequacies in the labor market can exist and can cause hardships for individual workers → While somewhat true, the emphasis is on statistical underestimation, making (B) the stronger choice.
(D) A majority of those who are jobless at any one time do not suffer severe hardship → The passage acknowledges that only a minority suffer severe hardship at any one time, but that many more suffer over time. The point being made is about statistical underestimation.
(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 → The passage actually suggests the opposite—that more people experience joblessness over a year than monthly statistics indicate.

Question 6: Who Does Not Feel the Effect of Social Programs?
Correct Answer: (A) The employed poor.
Explanation:
The passage states that income transfers in the U.S. primarily focus on the elderly, disabled, and dependents, while neglecting the needs of the working poor. This means that the employed poor often do not feel the benefit of social programs, making (A) the best choice.
Elimination of Wrong Options:

(B) Dependent children in single-earner families → Dependent children are typically covered by social programs such as welfare, food assistance, and child support.
(C) Workers who become disabled → The passage acknowledges that social programs assist the disabled.
(D) Retired workers → Retirees benefit from programs like Social Security and pensions.
(E) Full-time workers who become unemployed → Unemployed workers are often eligible for unemployment benefits, which are a form of income transfer.

Question 7: Factor That Causes Overprediction of Hardship
Correct Answer: (E) Prevalence, among low-wage workers and the unemployed, of members of families in which others are employed.
Explanation:
The passage argues that many individuals with low wages or unemployment come from households where others earn sufficient income. This means that unemployment and earnings figures can exaggerate the degree of hardship because they do not account for household wealth and multiple-income families.
Elimination of Wrong Options:

(A) Recurrence of periods of unemployment for a group of low-wage workers → This would contribute to underestimating hardship, not overpredicting it.
(B) Possibility that earnings may be received from more than one job per worker → The passage does not discuss multiple jobholders inflating statistics.
(C) Fact that unemployment counts do not include those who work for low wages and remain poor → This would lead to an underestimation, not an overprediction, of hardship.
(D) Establishment of a system of record-keeping that makes it possible to compile poverty statistics → The passage critiques the accuracy of poverty statistics but does not suggest that record-keeping itself overpredicts hardship.

Question 8: Conclusion on Forced Idleness
Correct Answer: (D) At different times during the year, different people are unemployed.
Explanation:
The passage states that the number of people experiencing joblessness throughout the year is several times higher than the monthly unemployment figures. This suggests that unemployment is not static—different people become unemployed at different times, making official statistics an underestimate.
Elimination of Wrong Options:

(A) In times of high unemployment, there are some people who do not remain unemployed for long. → The passage focuses on how many people experience joblessness, not the duration of unemployment.
(B) The capacity for self-support depends on receiving moderate-to-high wages. → The passage is about unemployment underestimation, not income levels.
(C) Those in forced idleness include, besides the unemployed, both underemployed part-time workers and those not actively seeking work. → While true, it does not directly explain why unemployment figures underestimate hardship due to joblessness occurring at different times.
(E) Many of those who are affected by unemployment are dependents of unemployed workers. → The passage is about workers, not their dependents, who are not part of the labor force.

Question 9: Best Criticism of the Author’s Argument on Poverty Statistics
Correct Answer: (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.
Explanation:
The author's argument is that poverty statistics do not accurately reflect labor market hardship because they include many non-workers (e.g., elderly, disabled). However, a counterargument is that changes in poverty levels—particularly short-term increases—can still indicate job shortages, since the non-working population remains relatively stable. This challenges the claim that poverty statistics are not useful for analyzing labor market problems.
Elimination of Wrong 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. → This does not refute the claim that poverty statistics misrepresent labor market problems.
(C) Poverty statistics do not consistently agree with earnings statistics, when each is taken as a measure of hardship resulting from unemployment. → This supports the passage’s argument rather than challenging it.
(D) The elderly and handicapped categories include many who previously were employed in the labor market. → This does not directly challenge the author’s claim that poverty statistics misrepresent labor market hardship.
(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. → This is an external factor and does not specifically refute the argument about poverty statistics.