Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 29 Mar 2017, 12:24

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

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

Author Message
Director
Affiliations: FRM Charter holder
Joined: 02 Dec 2006
Posts: 732
Schools: Stanford, Chicago Booth, Babson College
Followers: 16

Kudos [?]: 82 [0], given: 4

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

### Show Tags

31 Jan 2007, 06:53
00:00

Difficulty:

(N/A)

Question Stats:

100% (00:00) correct 0% (00:00) wrong based on 1 sessions

### HideShow timer Statistics

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 Kirlandiaâ€™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.
SVP
Joined: 08 Nov 2006
Posts: 1557
Location: Ann Arbor
Schools: Ross '10
Followers: 14

Kudos [?]: 191 [0], given: 1

### Show Tags

31 Jan 2007, 10:19
Quote:
D. The greatest growth in Kirlandiaâ€™s economy in recent years has been in
those sectors where workers earn wages that tend to be much higher
than the minimum wage.

According to D, increased minumum wages can possibly stimulate stronger economic growth.

I will go with D.
_________________

My Profile/GMAT/MBA Story
http://www.gmatclub.com/forum/111-t59345

GMAT Club Premium Membership - big benefits and savings

Director
Joined: 28 Dec 2005
Posts: 921
Followers: 2

Kudos [?]: 48 [0], given: 0

### Show Tags

31 Jan 2007, 10:56
Hmm, I will go with C. Thats the only one which shows a direct reason why wages would be affected
VP
Joined: 22 Oct 2006
Posts: 1441
Schools: Chicago Booth '11
Followers: 9

Kudos [?]: 189 [0], given: 12

### Show Tags

31 Jan 2007, 14:07
i go with C, its the classic argument against minimum wage, if you increase the minimum wage, you have to increase everyone elses salary above them
Senior Manager
Joined: 04 Nov 2006
Posts: 266
Location: California
Followers: 1

Kudos [?]: 202 [0], given: 0

### Show Tags

31 Jan 2007, 14:33
I will go with C too.. if there are many people near min wages, and if min wages increases, so businesses will have to increase the pays in view this increase...
Senior Manager
Joined: 17 Aug 2005
Posts: 391
Location: Boston, MA
Followers: 2

Kudos [?]: 97 [0], given: 0

### Show Tags

31 Jan 2007, 19:38
I like C best. But...

what's wrong with B? Is it "some...."?
Director
Affiliations: FRM Charter holder
Joined: 02 Dec 2006
Posts: 732
Schools: Stanford, Chicago Booth, Babson College
Followers: 16

Kudos [?]: 82 [0], given: 4

### Show Tags

01 Feb 2007, 03:24
buckkitty wrote:
I like C best. But...

what's wrong with B? Is it "some...."?

Even I chose C. But B is the OA.
Director
Joined: 28 Dec 2005
Posts: 921
Followers: 2

Kudos [?]: 48 [0], given: 0

### Show Tags

01 Feb 2007, 03:30
There is one other person who says the OA he has is C.

http://www.gmatclub.com/phpbb/viewtopic ... ge+country

I do not agree with B. If they were paying lesser than minimum wage before, there is no reason they will stop now.
01 Feb 2007, 03:30
Similar topics Replies Last post
Similar
Topics:
In two months, the legal minimum wage in the country of 6 19 Jun 2008, 04:19
In two months, the legal minimum wage in the country of 3 10 Jun 2008, 04:06
In two months, the legal minimum wage in the country of 4 26 Apr 2008, 09:24
2 In two months, the legal minimum wage in the country of 5 29 Jan 2008, 02:34
The fewer restrictions there are on the advertising of legal 0 29 Apr 2011, 10:35
Display posts from previous: Sort by