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15 Jan 2020, 07:50
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
71% (01:56) correct
29%
(02:03)
wrong
based on 1747
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.
ID 16598
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.
ID 16598
15 Jan 2020, 08:02
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I think the answer is E. E explains that oversupply of high school graduated must have caused the salary of high school graduates to decrease in 1980s. This decrease must be the reason why we have salary of college graduates at 43% greater than that of workers with only high school diplomas.. Say salary of College Grads (CG = 118) and High School Grads(HG=100). Now if HG goes down and CG remains same then it is possible to have 43% difference.
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15 Jan 2020, 10:39
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Discrepancy : Supply of college grads did not decrease but the income still went up by 43% compared to high school diploma holders.
A: Decreased demand for college grads => oversupply => income should not rise. So, A is eliminated.
B: Quality of high school grad improved => High school grads salary should increase. Assuming the college grad salary is same as 1970s, this should cause less than 18% gap between incomes. Eliminated.
C: Same reasioning as B.
D: Proportion of college grads increase => oversupply, assuming demand is same. Eliminated.
E: Oversupply of diplomas => Salaries of diploma holders goes down as presented in first sentence of the argument. If diploma salaries go down, even if college grad salaries remain same, the gap will be higher. E is the answer IMO.
A: Decreased demand for college grads => oversupply => income should not rise. So, A is eliminated.
B: Quality of high school grad improved => High school grads salary should increase. Assuming the college grad salary is same as 1970s, this should cause less than 18% gap between incomes. Eliminated.
C: Same reasioning as B.
D: Proportion of college grads increase => oversupply, assuming demand is same. Eliminated.
E: Oversupply of diplomas => Salaries of diploma holders goes down as presented in first sentence of the argument. If diploma salaries go down, even if college grad salaries remain same, the gap will be higher. E is the answer IMO.
