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# In two months, the legal minimum wage in the country of

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Director
Joined: 03 Aug 2012
Posts: 894
Concentration: General Management, General Management
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
WE: Information Technology (Investment Banking)
In two months, the legal minimum wage in the country of [#permalink]

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31 Jan 2013, 20:28
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59. In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars(KD5.00) Per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirfandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?
A. Most people in kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year.
B. Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulations.
C. Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their paylevels above the pay level of trainees.
D. The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage.
E The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.

Plz suggest where I am going wrong?

I don't find any reason why B is right because if Some firms have paid considerably less than KD 5 ,violating the regulations.So even if there will be an increase fron 5KD to 5.5 KD ,some firms will not follow the regulations.Hence ,there won't be any impact on wages (Supporting the conclusion)

By POE , My answer (E),as others are unrelated to argument.

Plz suggest
[Reveal] Spoiler: OA

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VP
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Re: In two months, the legal minimum wage in the country of Kirl [#permalink]

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31 Jan 2013, 20:51
targetgmatchotu wrote:
59. In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars(KD5.00) Per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirfandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?
A. Most people in kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year.
B. Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulations.
C. Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their paylevels above the pay level of trainees.
D. The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage.
E The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.

Plz suggest where I am going wrong?

I don't find any reason why B is right because if Some firms have paid considerably less than KD 5 ,violating the regulations.So even if there will be an increase fron 5KD to 5.5 KD ,some firms will not follow the regulations.Hence ,there won't be any impact on wages (Supporting the conclusion)

By POE , My answer (E),as others are unrelated to argument.

Plz suggest

How did you deduce the red part?
If a law has been made, then everyone is supposed to comply with the law. Your need not assume anything out of the box.

Now E: okay what if there are so much benefits given to the workers in order to compensate for the low wage. In order to select E, you have to assume a lot.
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Director
Joined: 03 Aug 2012
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WE: Information Technology (Investment Banking)
Re: In two months, the legal minimum wage in the country of Kirl [#permalink]

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31 Jan 2013, 21:11
Marcab wrote:
How did you deduce the red part?
If a law has been made, then everyone is supposed to comply with the law. Your need not assume anything out of the box.

Now E: okay what if there are so much benefits given to the workers in order to compensate for the low wage. In order to select E, you have to assume a lot.

If Some firms have paid considerably less than KD 5 even when the minimum wage regulation was 5 KD then how can you expect those firms to comply to the new limit of minimum wage requirement.
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Re: In two months, the legal minimum wage in the country of Kirl [#permalink]

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31 Jan 2013, 21:25
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So if a certain thing happened previously, then will it also happen now in order to violate law. Perhaps yes and perhaps no.
Giving a different case:
Previously some firms paid \$4.8, thereby violating minimum wage law of at least \$5 per worker. Now, the minimum wage has been increased to \$5.50 . Probably the employers will raise the wage-may be by \$0.1 or by \$0.5 so as to maintain the difference.
If it is then certainly the law will have an effect.
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Re: In two months, the legal minimum wage in the country of Kirl [#permalink]

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01 Feb 2013, 19:37
1
KUDOS
The conclusion of the argument is the effect of wage rise would be negligible since very few workers earn below the proposed wage level.

We have to identify a situation wherein the wage increase will have at least a decent impact.

Option B cannot be the correct answer, it states that currently some companies violate the min wage law, so how can it be that with the increase in wages they will comply with the new wage ?
Also the other point that makes this option incorrect is the use of word 'some', some means at least 1, it cannot be a huge no, because had that been the case the author would have used many.

Option E also cannot be the correct answer, it states that a worker with current minimum wage is not able to support his family, so with the increase in min wage all we can infer is that he might be able to support his family, but this in no way suggests that the inflation rate will go up.

Option C is the correct answer, it states that in 'many' firms the trainee is given the min legal wage and the workers are given a wage which is more than the trainee, so if the min wage increases then the wage given to trainee will increase and correspondingly the wage given to trained workers will also increase, this increase of money in the hands of many workers can increase the inflation. Hence C is the correct answer.

I did try to search for this question on other forums as well and found that the experts have ruled out B as the correct answer and stated C as the correct choice.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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18 Apr 2014, 13:44
OA should be C

Thanks!
Cheers!
J
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Posts: 10147
Re: In two months, the legal minimum wage in the country of [#permalink]

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25 Jul 2015, 22:44
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Re: In two months, the legal minimum wage in the country of [#permalink]

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26 Jul 2015, 04:29
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Re: In two months, the legal minimum wage in the country of   [#permalink] 26 Jul 2015, 04:29
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# In two months, the legal minimum wage in the country of

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