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

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

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29 Jan 2008, 02:34
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In two months, the legal minimum wage in the country of Kirlandia will increase from five Krilandic dollars (KD 5.00) per hour to KD 5.50 per hour. Opponetns 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 KD 5.50 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 KD 5.00 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 had 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.
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Re: CR - The legal minimum wage [#permalink]

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29 Jan 2008, 04:52
1
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GHIBI wrote:
In two months, the legal minimum wage in the country of Kirlandia will increase from five Krilandic dollars (KD 5.00) per hour to KD 5.50 per hour. Opponetns 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 KD 5.50 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. irrelevant, eliminate

B. Some firms in Kirlandia have paid workers considerably less than KD 5.00 per hour, in violation of Kirlandic employment regulations nothing to suggest that those firms will be legal and pay them \$5.50 after the rate goes up to 5.50. eliminate

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.
correct, if 5 trianees get their pay that goes up to 5.50, then 100 normal workers's wage could go up from 5.50 to 6, whereby everyone earning more could mean an inflation increase
D. The greatest growth in Kirlandia’s economy in recent years had been in those sectors where workers earn wages that tend to be much higher than the minimum wage.
irrelevant, since we are talking about workers way over minimum wage here
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. not enough info to make a judgement. will the new minimum wage cause these workers to earn substantially more as a whole? Also the passge says that only a small proportion of workers are on minimumwage and this option doesn't have an effect on the entire population as a whole to drive up inflation
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Re: CR - The legal minimum wage [#permalink]

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29 Jan 2008, 08:05
E...whats the OA?
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Re: CR - The legal minimum wage [#permalink]

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29 Jan 2008, 19:24
write me up for C ...
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Re: CR - The legal minimum wage [#permalink]

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29 Jan 2008, 19:50
1
KUDOS
GHIBI wrote:
In two months, the legal minimum wage in the country of Kirlandia will increase from five Krilandic dollars (KD 5.00) per hour to KD 5.50 per hour. Opponetns 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 KD 5.50 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 KD 5.00 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 had 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.

The answer should be (C). To disprove the stated argument, you would need a statement that shows the increase in minimum wage having a major impact (in terms of number of people affected).
A. Irrelevant. This doesn't address how many people receive minimum wage, or will be affected by an increase
B. Irrelevant, as these firms are likely to continue violating regulations
C. Correct. If trainee's were earlier receiving minimum wage (5.00 / hr), trained workers were paid a little higher (some of whom would be getting 5.5 / hr). An increase in the minumum wage would result in an increase of wages for trained workers. This could result in an increase for a lot of workers, effectively driving inflation up.
D. Irrelevant, workers in the 'affluent' category will not be not affected by an increase in the minimum wage.
E. Irrelevant. This simply states the condition of existing minimum wage employees, and does not address how many workers face currently receive minimum wage, and will hence be affected by the raise.
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Re: CR - The legal minimum wage [#permalink]

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01 Feb 2008, 06:13
Clear C.
I expect something like that: "the legal minimum wage is a base for calculations of public aids...."
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Re: CR - The legal minimum wage   [#permalink] 01 Feb 2008, 06:13
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