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

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

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New post 26 May 2010, 03:08
I go with B. Can anyone post what is the right answer please ?
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 26 May 2010, 06:59
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Here main argument is "resulting rise in wages will drive the inflation rate up" Others are supporting premises.
rise in wages ( cause ) inflation rate up (effect)

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year --Still inflation can rise.

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation -- still inflation can rise

(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees. --if wages is increase ..more capital inflow in the market .. so therefore, it's supporting the argument


(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. -- Inflation still can go up

(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. ---Author failed to consider another important factor - the livelihood worker .. so this is correct answer
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New post 26 May 2010, 11:00
This is a difficult question. Eventually, I narrowed it down to B or C. I'm not sure I agree with OA because there is nothing in B that states companies will be compliant with the wage increase. If they continue to deflate wages then there should be no net change when the wage increase in implemented.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 26 May 2010, 13:58
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If (b) is answer, then never trust questions from this source again

(b) actually strengthens the argument, (b) says that some companies ignore the minimum wage law entirely. If companies ignore it, who cares what the new minimum wage?

(c) is correct because it's the only choice that makes us think that a higher minimum wage affects not only minimum wage earners, but also higher paid employees.

Hope this help...
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New post 27 May 2010, 02:04
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onedayill is right!

Tip: The GMAT's favorite way to create confusion in strengthening/weakening questions is to create answers that achieve the opposite task!

B does indeed strengthen the conclusion that changing the minimum wage will not have an affect.
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New post 13 Jun 2010, 04:28
I go with C. Not sure why OA is B.

(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
(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation
(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels 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. >>> a bit too far
(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. >>> Irrelevant
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New post 27 May 2011, 12:50
I totally agree with you :)

here the problem is: inflation rise----->> money has less power to buy something and for inflation we need MORE money on the market.

B weak the argument because workers are paid LESS by firms, hence less money on the market
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 29 May 2011, 04:08
C.
As for B, since firms were violating the minimum wage before, there is no reason to suggest they will comply with the higher min wage.
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New post 30 May 2011, 00:03
Trapping of many and some used here.

B surely strengthens the conclusion that few people will be effected by change in wages.

C is a sure thing here.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 05 Jun 2011, 06:10
What exactly is the source of this question? 2 pages on and we are still debating the correct answer!
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New post 22 May 2012, 09:37
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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 Kirlandic 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.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post Updated on: 22 May 2012, 11:20
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We need to select an answer choice that weakens the argument that the wage increase will not lead to inflation as most workers are already being paid at the higher wage level.

Choice B is incorrect because there is no guarantee that firms who operate outside the legal purview now will follow the minimum wage rule after the minimum wage is raised.

Choice C indicates this correctly. If the pay levels of trained workers must be above those of trainees, their pay must go up too. This is the best choice. It does not depend on the proportion of trainees in the workforce, or on the magnitude of difference between trainee pay levels and trained worker pay levels. After they are trained, the trainees will go to higher wages too. If these higher wages are significantly above 5.5, it will cause inflation. If they are not, and even if trainees are small proportion of the overall workforce, the trained workers will still all move up further, which will cause inflation. Either way, overall wages will rise and cause inflation.

Source of the Q?
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Originally posted by GyanOne on 22 May 2012, 10:49.
Last edited by GyanOne on 22 May 2012, 11:20, edited 1 time in total.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 22 May 2012, 10:52
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Are you sure about answer being B?

Most definitely looks like it should be C.

We have to look for something which implies that many workers will be affected by the new minimum wage.

A) Don't care about time
B) If the companies did not comply with the law before, they will not comply with the new wage either
C) If you raise the level of minimum wage and you have to keep trained workers higher than minimum wage then it will have an effect
D) Don't care about other sectors
E) Minimum wage being enough or not is irrelevant
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 22 May 2012, 10:56
GyanOne wrote:
We need to select an answer choice that weakens the argument that the wage increase will not lead to inflation as most workers are already being paid at the higher wage level.

Choice B does this best by indicating that there are some firms which have paid their workers less than even the KD5.0 minimum wage. If the wages of these workers rise from those low figures to KD5.5, it will lead to inflation.


I think this is where the confusion sets in. What is the exact argument of the statement? I think this is poorly written because there are 2 clear arguments.

1) Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up.

or

2) In fact its impact (effects of minimum wage increase) on wages will probably be negligible
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New post 22 May 2012, 20:21
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imo it should be C. if you are not following the law, raising the wage to 5 or 15 doesnt make any difference. the question quality seems a little poor.
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New post 22 May 2012, 23:27
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Arguement:
If minumum wage is increased, inflation will go up.

What would weaken the argument. ---> Even though the wage is increased, the inflation wont go up.

B - Few firms pay less than that mentioned by norms set out by government.
If the firms continue to do so, the workers would continued to be paid lower wages and inflation would be not go up.

C - If trainees' wages go up, trained workers wage should also go up. This will increase the inflation. - Strengthens the arguement.

I will go with B.

If anyone has a better explanation to support or counter me, please do so.
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New post 23 May 2012, 06:24
ok so it boils down to what is the conclusion of the argument? i thogth it was - In fact its impact on wages will probably be negligible , since only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour.
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New post 23 May 2012, 06:30
sidhu09 wrote:
Arguement:
If minumum wage is increased, inflation will go up.

What would weaken the argument. ---> Even though the wage is increased, the inflation wont go up.

B - Few firms pay less than that mentioned by norms set out by government.
If the firms continue to do so, the workers would continued to be paid lower wages and inflation would be not go up.

C - If trainees' wages go up, trained workers wage should also go up. This will increase the inflation. - Strengthens the arguement.

I will go with B.

If anyone has a better explanation to support or counter me, please do so.


isn't the arguement about having "no" impact by increase in small amount of salary?
then C is going against it..
For B, its already mentioned 'some'
i did chose C on these grounds
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New post 31 May 2012, 15:02
I will go with C

Conclusion: The impact of the increase in the legal minimum wage in Kirlandia on wages will probably be minor / small.
Premises:
• The legal min wage in Kirlandia will increase from KD5.00 to KD5.50 per hour.
• Resulting rise in wages will drive the inflation rate up.
• A very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour.
Assumption:
Majority of people in Kirlandia who are earning wages are workers. There are few other types of labours that are earning wages in Kirlandia.
Answer: C. Explanations are as follows.
(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; employment duration is not mentioned in the argument.

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation --> irrelevant; the argument is only discussing about the impact of the increase in legal minimal wage from KD5.00 to 5.50 on wages but not about firms that violate the law.

(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees. --> Correct answer, it weakens the argument (conclusion). (1) Many businesses hire trainees [ besides workers, trainees also accounts for outstanding number of people earning wage in Kirlandia]. (2) Trainees are currently hired at minimum wage. The increase in legal min. wages in 2 months will lead to the increase in trainee's wage. (1)+(2) --> increase in legal min. wages will have greatly impact on wages in general in Kirlandia.

(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. --> Irrelevant, there is no relation between the conclusion ( impact of the increase in legal minimum wage on wages) and the recent economy growth of Kirlandia

(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.
--> This cannot weaken the argument since there is only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour. If there are workers who are receiving current minimum wage and are now having more than one job, this has minimal impact on wage of all workers in Kirlandia. Therefore, if (E) is true, it can not undermine the argurment.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 01 Jun 2012, 02:57
I go with C.

C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees.-->

Explanation: Most companies hire trainees on minimum wage and then have to soon give a hike once they are trained, hence the minimum wage(5.50 KKD) for most companies is only during the training period of employees. The effective minimum wage becomes much higher, once they employees are trained.

Hence C weakens the argument.
Re: In two months, the legal minimum wage in the country of &nbs [#permalink] 01 Jun 2012, 02:57

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