It is currently 14 Dec 2017, 00:29

Decision(s) Day!:

CHAT Rooms | Ross R1 | Kellogg R1 | Darden R1 | Tepper R1


Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In many corporations, employees are being replaced by automated equipm

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
avatar
Joined: 15 Feb 2011
Posts: 240

Kudos [?]: 201 [0], given: 9

In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 31 Aug 2011, 03:30
13
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

77% (00:55) correct 23% (01:21) wrong based on 436 sessions

HideShow timer Statistics

In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

Which of the following, if true, most strengthens the author's argument?

(A) Many workers who have already lost their jobs to automation have been unable to find new jobs.

(B) Many corporations that have failed to automate have seen their profits decline.

(C) Taxes and unemployment insurance are paid also by corporations that are not automating.

(D) Most of the new jobs created by automation pay less than the jobs eliminated by automation did.

(E) The initial investment in machinery for automation is often greater than the short-term savings in labor costs.

Source : GMATPREP Default Exam Pack
[Reveal] Spoiler: OA

Last edited by hazelnut on 26 Jun 2017, 21:58, edited 2 times in total.
OA updated

Kudos [?]: 201 [0], given: 9

9 KUDOS received
Math Forum Moderator
avatar
Joined: 20 Dec 2010
Posts: 1949

Kudos [?]: 2138 [9], given: 376

Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 31 Aug 2011, 06:18
9
This post received
KUDOS
2
This post was
BOOKMARKED
DeeptiM wrote:
In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

Author's Argument: Automation may not result in reduced expenses in the corporations; on the contrary, laying-off workers may adversely affect them because they will have to pay more in taxes and for unemployment insurance claims.

Which of the following, if true, most strengthens the author's argument?

A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
As author warned, the corporations are indeed bearing the monetary responsibilities for cutting jobs as the people they laid-off are jobless for extended period. Correct.

B. Many corporations that have failed to automate have seen their profits decline.
Weakens. Opposing author's calculated skepticism with automation, corporations that employed it actually saved their own skin.

C. Taxes and unemployment insurance are paid also by corporations that are not automating.
Corporations Counter-argument: So what Mr. Author, what are we to lose. Automation or no automation, we're anyway to bear the burden of both the things you just mentioned. We'll go ahead with our plan anyway; thanks for the heads-up though.

D. Most of the new jobs created by automation pay less than the jobs eliminated by automation did.
Automation were employed for some reasons and this is one among those. Automation did bring down the expenses that the corporations had been paying off as salaries. Weakens.

E. The initial investment in machinery for automation is often greater than the short-term savings in labor costs.
Corporations may be seeking long-term benefits. This is out of scope.



Ans: "A"
_________________

~fluke

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 2138 [9], given: 376

2 KUDOS received
Manager
Manager
User avatar
Status: Enjoying the MBA journey :)
Joined: 09 Sep 2011
Posts: 137

Kudos [?]: 138 [2], given: 16

Location: United States (DC)
Concentration: General Management, Entrepreneurship
GMAT 1: 710 Q49 V38
WE: Corporate Finance (Other)
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 11 Nov 2011, 09:29
2
This post received
KUDOS
Hi

Option B talks about profits for corporations that have failed to automate. However, clearly the argument mentions only those corporations wherein automation is under way. Also, the argument never mentions profit as an aspect and is just concerned with people losing their jobs to automation.

Option A clearly strengthens the argument by eliminating the possibility that the workers who are losing jobs to automation might find new jobs without any problems. If it were the case, then the argument might be weakened.

Hope this helps.

Cheers!
_________________

MBA Candidate 2015 | Georgetown University
McDonough School of Business

Kudos [?]: 138 [2], given: 16

Manager
Manager
User avatar
Joined: 09 Nov 2011
Posts: 127

Kudos [?]: 67 [0], given: 16

Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 11 Nov 2011, 10:40
Author's Argument: Companies eventually need to pay more tax.
Why: If unemployment increases, govt will increase taxes to pay off unemployement.

Hence anything that points to increase in unemployment increase will be a right answer.

Why not B - There is no mention of profit in the argument. Hence we cannot relate profit to taxes and also, the author is only concerned about the companies that are moving to automation and nothing about the companies that are not doing so. Option B is irrelevant.
_________________

Time to play the game...

Kudos [?]: 67 [0], given: 16

Manager
Manager
User avatar
Status: livin on a prayer!!
Joined: 12 May 2011
Posts: 118

Kudos [?]: 36 [0], given: 1

Location: Australia
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 11 Nov 2011, 15:38
Answer A tells us that the workers won't be able to find new jobs easily hence corporations won't have to pay for their unemployment.
B is irrelevent; the passage is about corporations who have automated.
_________________

Aim for the sky! (800 in this case)
If you like my post, please give me Kudos :)

Kudos [?]: 36 [0], given: 1

BSchool Forum Moderator
avatar
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 889

Kudos [?]: 742 [0], given: 44

Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
GMAT ToolKit User Premium Member Reviews Badge
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 13 Nov 2011, 00:13
I do not read carefully but, I easily find the 4 remain wrong answer after A.

In answer choice B, which stated that "Many corporations that have failed to automate have seen their profits decline". This sentence is neutral, and this is must be true choice from the premise of argument. Remember, weaken answer choice have to go before conclusion, not after the conclusion. I always lazily to explain too much (the GMAT test also do not need you have to explain beside clicking answer choice, right :D).

Hope that help.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you :)

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Kudos [?]: 742 [0], given: 44

1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 12 Oct 2011
Posts: 254

Kudos [?]: 67 [1], given: 110

Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 27 Dec 2011, 22:37
1
This post received
KUDOS
A is the clear answer here. Profits mentioned in B are irrelevant to the conclusion. The conclusion is strengthened because A states that as these employees are unable to find new jobs, they are unemployed. The premise states that the companies that fire these employees have to take care of these employees through unemployment insurance payments. That is why A strengthens the conclusion.
_________________

Consider KUDOS if you feel the effort's worth it

Kudos [?]: 67 [1], given: 110

Manager
Manager
avatar
Joined: 25 Nov 2011
Posts: 247

Kudos [?]: 241 [0], given: 20

Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 17 Jan 2012, 17:17
fluke wrote:
A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
As author warned, the corporations are indeed bearing the monetary responsibilities for cutting jobs as the people they laid-off are jobless for extended period. Correct.

Ans: "A"


good reasoning.
First statement says companies are SAVING money. Second statement contradicts with that by introducing the word 'However' with the fact that companies have to pay money for the unemployment they created. With this, A is the only one that fits the bill.
_________________

-------------------------
-Aravind Chembeti

Kudos [?]: 241 [0], given: 20

Intern
Intern
avatar
Joined: 24 Sep 2014
Posts: 9

Kudos [?]: 13 [0], given: 1

GMAT ToolKit User
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 06 Oct 2014, 04:14
why it cannot be C.
its says that Taxes and unemployment insurance are paid also by corporations that are not automating.
so if those corporations which are not automated pays unemployment insurance then it is definite that corporations which are automated will definitely pay unemployment insurance

Kudos [?]: 13 [0], given: 1

1 KUDOS received
Manager
Manager
avatar
Joined: 26 May 2014
Posts: 94

Kudos [?]: 107 [1], given: 43

Location: India
Concentration: Technology, General Management
Schools: HKUST '15, ISB '15
GMAT Date: 12-26-2014
GPA: 3
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 06 Oct 2014, 23:49
1
This post received
KUDOS
Hi Lakshey,

Premise: employees are being replaced by automated equipment in order to save money.
Premise : many workers who lose their jobs to automation will need government assistance to survive,
Conclusion: the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.


lakshey1993 wrote:
C. Taxes and unemployment insurance are paid also by corporations that are not automating.
why it cannot be C.
its says that Taxes and unemployment insurance are paid also by corporations that are not automating.
so if those corporations which are not automated pays unemployment insurance then it is definite that corporations which are automated will definitely pay unemployment insurance


This is actually a weakener because if every corporation(automated or not) will pay more taxes then why not to automate and make some profit by laying off employees !


Press Kudos if it helps :)
_________________

Success has been and continues to be defined as Getting up one more time than you have been knocked down.

Kudos [?]: 107 [1], given: 43

Expert Post
MBA Section Director
User avatar
D
Joined: 19 Mar 2012
Posts: 4736

Kudos [?]: 18073 [0], given: 1991

Location: India
GMAT 1: 760 Q50 V42
GPA: 3.8
WE: Marketing (Non-Profit and Government)
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 03 Feb 2015, 06:17
Expert's post
3
This post was
BOOKMARKED

GMAT Club Revision Project - CR Q4


Please post a detailed explanation and answer to this question to get a chance to get Kudos and your explanation posted on the GMAT Club Revision PDF


In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments. Which of the following, if true, most strengthens the author's argument?

A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
B. Many corporations that have failed to automate have seen their profits decline.
C. Taxes and unemployment insurance are paid also by corporations that are not automating.
D. Most of the new jobs created by automation pay less than the jobs eliminated by automation did.
E. The initial investment in machinery for automation is often greater than the short-term savings in labor costs.
_________________

My GMAT Resources
V30-V40: How to do it! | GMATPrep SC | GMATPrep CR | GMATPrep RC | Critical Reasoning Megathread | CR: Numbers and Statistics | CR: Weaken | CR: Strengthen | CR: Assumption | SC: Modifier | SC: Meaning | SC: SV Agreement | RC: Primary Purpose | PS/DS: Numbers and Inequalities | PS/DS: Combinatorics and Coordinates

My MBA Resources
Everything about the MBA Application | Over-Represented MBA woes | Fit Vs Rankings | Low GPA: What you can do | Letter of Recommendation: The Guide | Indian B Schools accepting GMAT score | Why MBA?

My Reviews
Veritas Prep Live Online

Kudos [?]: 18073 [0], given: 1991

Manager
Manager
User avatar
Joined: 14 Sep 2014
Posts: 106

Kudos [?]: 46 [0], given: 236

Concentration: Technology, Finance
WE: Analyst (Other)
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 03 Feb 2015, 06:43
The argument claims that the increase of layoffs will directly result in increased taxes for government assistance. The assumption is that those being laid off will not be able to find another job; if they could find another job, the number of unemployment claims would decrease. The argument is only focused on whether firms that are automating will pay more taxes for government assistance. The incorrect answers are trying to distract you.

A. Many workers who have already lost their jobs to automation have been unable to find new jobs. This is correct. If they could find another job, unemployment claims would decrease.
B. Many corporations that have failed to automate have seen their profits decline. profits are not relevant
C. Taxes and unemployment insurance are paid also by corporations that are not automating. firms that don't automate are not relevant
D. Most of the new jobs created by automation pay less than the jobs eliminated by automation did. difference in pay is not relevant
E. The initial investment in machinery for automation is often greater than the short-term savings in labor costs. return on investment is not relevant; we just want to know if these firms will pay more taxes

Kudos [?]: 46 [0], given: 236

Intern
Intern
avatar
Joined: 08 Oct 2014
Posts: 11

Kudos [?]: 6 [0], given: 21

GPA: 4
GMAT ToolKit User Reviews Badge
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 03 Feb 2015, 07:42
A- clearly strengthens the Argument.
per the context of the argument the basic assumption is the no of unemployed will go up
( it implies Job market is tough & govt support will be solicited in such a scenario)
also
_________________

urban hermit

Kudos [?]: 6 [0], given: 21

Verbal Forum Moderator
User avatar
Status: Getting strong now, I'm so strong now!!!
Affiliations: National Institute of Technology, Durgapur
Joined: 04 Jun 2013
Posts: 561

Kudos [?]: 720 [0], given: 80

Location: India
GPA: 3.32
WE: Information Technology (Computer Software)
GMAT ToolKit User Premium Member Reviews Badge
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 18 Feb 2015, 00:47
The argument will only hold if we can show that employees who lost their job are continuously being provided support by the government for a long period of time. In case the employees were to find another job then the argument would break.
So A clearly says they din't get another job
_________________

Regards,

S

Consider +1 KUDOS if you find this post useful

Kudos [?]: 720 [0], given: 80

Manager
Manager
avatar
Joined: 04 Jan 2014
Posts: 100

Kudos [?]: 34 [0], given: 20

GMAT ToolKit User
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 18 Feb 2015, 19:55
A for me.. If people who lost their jobs to automation were not able to find new jobs, then surely the unemployment rate will grow. This inturn will lead to the "same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments" of premises.

Kudos [?]: 34 [0], given: 20

Manager
Manager
User avatar
Joined: 25 Apr 2013
Posts: 66

Kudos [?]: 19 [0], given: 12

Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 19 Feb 2015, 05:12
I have a question. Is option A an assumption also? Because going by "negation technique" for assumptions, if option A is negated, in other words, if many workers who have lost their jobs to automation are able to find new jobs, then the conclusion of the argument no longer is valid.

Kudos [?]: 19 [0], given: 12

Expert Post
2 KUDOS received
Veritas Prep GMAT Instructor
User avatar
G
Joined: 16 Oct 2010
Posts: 7793

Kudos [?]: 18125 [2], given: 236

Location: Pune, India
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 19 Feb 2015, 19:39
2
This post received
KUDOS
Expert's post
damyanti wrote:
I have a question. Is option A an assumption also? Because going by "negation technique" for assumptions, if option A is negated, in other words, if many workers who have lost their jobs to automation are able to find new jobs, then the conclusion of the argument no longer is valid.


Assumptions are a kind of strengtheners.

Premises that strengthen the conclusion provide data that makes the conclusion more possible.
Assumptions are premises that strengthen the conclusion and in fact are necessary to make the conclusion hold.

So every assumption will strengthen the conclusion but every strengthener is not an assumption.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Kudos [?]: 18125 [2], given: 236

Current Student
avatar
Status: Applied
Joined: 02 May 2014
Posts: 164

Kudos [?]: 36 [0], given: 46

Location: India
Concentration: Operations, General Management
GMAT 1: 690 Q47 V38
GPA: 3.35
WE: Information Technology (Computer Software)
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 21 Feb 2015, 02:29
option A gives credence to the belief that going by the general belief the companies would eventually have to do what the argument has predicted so that the answer.

Kudos [?]: 36 [0], given: 46

Intern
Intern
avatar
B
Joined: 15 Jan 2016
Posts: 18

Kudos [?]: 21 [0], given: 37

GMAT ToolKit User
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 13 Apr 2016, 13:06
Chembeti wrote:
fluke wrote:
A. Many workers who have already lost their jobs to automation have been unable to find new jobs.
As author warned, the corporations are indeed bearing the monetary responsibilities for cutting jobs as the people they laid-off are jobless for extended period. Correct.

Ans: "A"


good reasoning.
First statement says companies are SAVING money. Second statement contradicts with that by introducing the word 'However' with the fact that companies have to pay money for the unemployment they created. With this, A is the only one that fits the bill.


I am not sure i follow the reasoning. Please elaborate a bit

To me option A seemed like this: If people laid off are unable to find new jobs, it is most likely because companies are not willing to hire people as they found a better and more profitable alternative in automation, and are more willing to do so.

Kudos [?]: 21 [0], given: 37

Intern
Intern
avatar
B
Joined: 17 May 2016
Posts: 31

Kudos [?]: 5 [0], given: 38

Reviews Badge
Re: In many corporations, employees are being replaced by automated equipm [#permalink]

Show Tags

New post 28 Jan 2017, 04:19
Hi All,

Sorry in advance if my question seems stupid :

While reading, I had the impression that there were no conclusion, only a bunch of statements.
Since the only affirmative sentence was the first, I thought that the conclusion was the following : Replacement of workers ==> Savings
I thought that the second part However it is possible that actually it costs money was only an hypothesis, a possibility.

Then my question is the following : How can you consider a probabability, without any affirmation (introduced by however), a conclusion ?

Thanks in advance for your kind help,

Kudos [?]: 5 [0], given: 38

Re: In many corporations, employees are being replaced by automated equipm   [#permalink] 28 Jan 2017, 04:19

Go to page    1   2    Next  [ 25 posts ] 

Display posts from previous: Sort by

In many corporations, employees are being replaced by automated equipm

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.