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

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

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09 Feb 2007, 11:41
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1.In the 1970â€™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 1980â€™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 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™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 1970â€™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.
_________________

cool

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Director
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Re: CR 1000 [#permalink]

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09 Feb 2007, 14:13
jet1445 wrote:
1.In the 1970â€™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 1980â€™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 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™s, best reconciles the apparent discrepancy described above?

(A) The economy slowed, thus creating a decreased demand for college graduates. out of scope
(B) The quality of high school education improved. does not matter
(C) Compared to the 1970â€™s, a greater number of high schools offered vocational guidance programs for their students. out of scope
(D) The proportion of the population with at least a college-level education increased. correct
(E) There was for the first time in 20 years an oversupply of job seekers with only high school diplomas.
out of scope

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Senior Manager
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Re: CR 1000 [#permalink]

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09 Feb 2007, 14:26
jet1445 wrote:
1.In the 1970â€™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 1980â€™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 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™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 1970â€™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.

E has some holes but I'll still take it.
If people with HS diplomas increased then the proportion of people w/ college degrees decreased, thus creating higher demand for college degrees. But if the # of open jobs remains constant then that should affect pay?

A-decreased demand = lower pay
B-would possibly cause decreased demand for college grads
C-Out of Scope
D-proportion of College ed. people means there would be more of them in the job market and pay would go down.

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Re: CR 1000 [#permalink]

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09 Feb 2007, 14:49
1
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jet1445 wrote:
1.In the 1970â€™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 1980â€™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 1970â€™s and the late 1980â€™s the supply of college graduates did not decrease.
Which of the following, if true, in the late 1980â€™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 1970â€™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.

See the blue highlighted text in the argument. It establishes a causal relationship between the oversupply of a graduate pool and the fall in average annual income of that pool.

The argument says that by 1980s there was a 43% gap in the salaries between high school and college graduates eventhough the college graduate pool did not decrease. Applying the causal relationship from above, the gap can increase only

1. If college graduate pool remained constant/decreased and there was an increase in the high school graduate pool(thus decreasing the average annual salary)

OR

2. If college graduate pool increased(decreasing the average annual salary by some %) and there was a comparatively significant increase in the high school graduate pool(thus decreasing the average annual salary to levels by a much higher % )

E is the correct answer.

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Senior Manager
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10 Feb 2007, 05:48
Straight E

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11 Feb 2007, 11:35
my E as well.. gives a good reason for high-schoolers' salary to fall.. and thus the difference to rise..

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18 Feb 2007, 10:31
'E' is the choice, which supports the higher salary logic.

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18 Feb 2007, 22:01
C is one misleading option.

But high schools offered vocational guidance programs, which need not be diplomas. Also, schools offered does not mean that students had their diplomas.

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Re: CR 1000 [#permalink]

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06 Mar 2008, 22:51
OA = E

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Re: CR 1000   [#permalink] 06 Mar 2008, 22:51
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# In the 1970 s there was an oversupply of college graduates.

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