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# In the 1970's there was an oversupply of college graduates.

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Updated on: 21 Jan 2018, 01:08
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Difficulty:

45% (medium)

Question Stats:

66% (01:32) correct 34% (01:27) wrong based on 431 sessions

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In the 1970’s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980’s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970’s and the late 1980’s the supply of college graduates did not decrease.

Which of the following, if true, in the late 1980’s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates.

(B) The quality of high school education improved.

(C) Compared to the 1970’s, a greater number of high schools offered vocational guidance programs for their students.

(D) The proportion of the population with at least a college-level education increased.

(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.

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Originally posted by spriya on 31 Jul 2008, 18:28.
Last edited by Mahmud6 on 21 Jan 2018, 01:08, edited 2 times in total.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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31 Jul 2008, 18:43
spriya wrote:
In the 1970’s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980’s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970’s and the late 1980’s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980’s, best reconciles the apparent discrepancy described above?
(A) The economy slowed, thus creating a decreased demand for college graduates.
(B) The quality of high school education improved.
(C) Compared to the 1970’s, a greater number of high schools offered vocational guidance programs for their students.
(D) The proportion of the population with at least a college-level education increased.
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.

IMO E)

A) should have decreased salary diff
B) should have decreased salary diff
C) is irrelevant
D) can affect stats both ways.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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01 Aug 2008, 20:32
nmohindru wrote:
spriya wrote:
In the 1970’s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980’s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970’s and the late 1980’s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980’s, best reconciles the apparent discrepancy described above?
(A) The economy slowed, thus creating a decreased demand for college graduates.
(B) The quality of high school education improved.
(C) Compared to the 1970’s, a greater number of high schools offered vocational guidance programs for their students.
(D) The proportion of the population with at least a college-level education increased.
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.

IMO E)

A) should have decreased salary diff
B) should have decreased salary diff
C) is irrelevant
D) can affect stats both ways.

E is the OA
Whenever supply is high automatically value of the same falls .this is explained in E
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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09 Dec 2010, 12:22
3
. In the 1970's there was an oversupply of college
graduates. The oversupply caused the average
annual income of college graduates to fall to a level
only 18 percent greater than that of workers with
only high school diplomas. By the late 1980's the
average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970's
and the late 1980's the supply of college graduates
did not decrease.

Which of the following, if true in the late 1980's,
best reconciles the apparent discrepancy described
above?
(A) The economy slowed, thus creating a decreased
(B) The quality of high school education improved.
(C) Compared to the 1970's, a greater number of
high schools offered vocational guidance
programs for their students.
(D) The proportion of the population with at least a
college-level education increased.
(E) There was for the first time in 20 years an over-
supply of job seekers with only high school
diplomas.

what is wrong with choice A
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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09 Dec 2010, 21:33
in A it says that the economy slowed in 1980, therefore it should of cause the decrease in salaries rather than increase.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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11 Dec 2010, 09:33
1
This questions plays the trick with percentages and absolute figures .

Lets assume that the amount college graduates used to get has not increased (owing to the fact that the supply of college graduates did not decrease) . How do we then explain the increasing % gap . That could only be explained if the salary of workers with only high schools diploma decreases and E happens to reconcile these facts.

If the number of job seekers with only high school diplomas are swarming the city , then obviously their income will fall down(yeah...its again an assumption).

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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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20 Jul 2011, 21:55
E is correct. After reading a convoluted premise I actually expected trickier answer choices, but E was pretty straight forward.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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28 Sep 2011, 08:01
ajit257 wrote:
. In the 1970's there was an oversupply of college
graduates. The oversupply caused the average
annual income of college graduates to fall to a level
only 18 percent greater than that of workers with
only high school diplomas. By the late 1980's the
average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970's
and the late 1980's the supply of college graduates
did not decrease.

Which of the following, if true in the late 1980's,
best reconciles the apparent discrepancy described
above?
(A) The economy slowed, thus creating a decreased
(B) The quality of high school education improved.
(C) Compared to the 1970's, a greater number of
high schools offered vocational guidance
programs for their students.
(D) The proportion of the population with at least a
college-level education increased.
(E) There was for the first time in 20 years an over-
supply of job seekers with only high school
diplomas.

what is wrong with choice A

Why not A? Because when the demand decreases, the price decreases.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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29 Sep 2011, 00:31
lawsohn wrote:
ajit257 wrote:
. In the 1970's there was an oversupply of college
graduates. The oversupply caused the average
annual income of college graduates to fall to a level
only 18 percent greater than that of workers with
only high school diplomas. By the late 1980's the
average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970's
and the late 1980's the supply of college graduates
did not decrease.

Which of the following, if true in the late 1980's,
best reconciles the apparent discrepancy described
above?
(A) The economy slowed, thus creating a decreased
(B) The quality of high school education improved.
(C) Compared to the 1970's, a greater number of
high schools offered vocational guidance
programs for their students.
(D) The proportion of the population with at least a
college-level education increased.
(E) There was for the first time in 20 years an over-
supply of job seekers with only high school
diplomas.

what is wrong with choice A

Why not A? Because when the demand decreases, the price decreases.

First understand the discrepancy:

Even though the supply of college graduates did not decrease ( stayed same or increased), the average annual income of college graduates increased (18% above high school to 43% above high school). How can this happen? This can only happen when the rates of high school pass outs go down. This happens when High school pass outs supply increase.

Hope this helps.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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04 Jul 2012, 06:28
Why is it not A? If the demand decreases, the average rate should increase, which explains why the increase to 43%.. Someone please explain
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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04 Jul 2012, 10:00
ivinayak wrote:
Why is it not A? If the demand decreases, the average rate should increase, which explains why the increase to 43%.. Someone please explain

I think because the question says:

Which of the following, if true, in the late 1980’s, best reconciles the apparent discrepancy described above?

If the economy slowed, as A suggested, in the 80's, you wouldn't expect to see an increase in wages?
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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04 Jul 2012, 11:45
+1 for (E)
More job seekers---->reduced pay
1970s
more degree guys---->lesser difference of pay between high school guys and degree guys.
1980s
degree guys ----->higher difference of pay between high school guys and degree guys.
It means either the no. of degree guys has dropped OR the number of high school guys has galloped.
Since,the no.of degree guys is constant then definitely the high school guys would have faced oversupply of human resources in 1980s period as the degree holder guys faced during 1970s.
(E) wins.
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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28 Jul 2014, 18:33
We need to prove why annual income of workers with only high school diploma decreased.. This is clearly supported by option E
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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18 Dec 2017, 20:51
Merged topics. Please, search before posting questions!
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Re: In the 1970's there was an oversupply of college graduates.  [#permalink]

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05 Dec 2018, 14:05
spriya wrote:
In the 1970’s there was an oversupply of college graduates. The oversupply caused the average annual income of college graduates to fall to a level only 18 percent greater than that of workers with only high school diplomas. By the late 1980’s the average annual income of college graduates was 43 percent higher than that of workers with only high school diplomas, even though between the 1970’s and the late 1980’s the supply of college graduates did not decrease.

Which of the following, if true, in the late 1980’s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates.

(B) The quality of high school education improved.

(C) Compared to the 1970’s, a greater number of high schools offered vocational guidance programs for their students.

(D) The proportion of the population with at least a college-level education increased.

(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.

We have to seek for an option that says something about strong demand of college graduates in 1980 with high income or abot weak demand of high diplomas wih lower incomes - option E gives us the second
Re: In the 1970's there was an oversupply of college graduates. &nbs [#permalink] 05 Dec 2018, 14:05
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