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

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

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13 Aug 2009, 19:32
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If (b) is the official answer, then never trust questions from this source again - (b) is definitely not a weakener. (b) says that some companies ignore the minimum wage law entirely. If companies ignore it, who cares what the new minimum wage is?
(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. So, even though it may be true that not many people earn minimum wage, bumping up the minimum wage could lead to an increase in other wages as well.
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Director
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Re: In two months, the legal minimum wage in the country of [#permalink]

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13 Aug 2009, 23:15
I don't think E is completely irrelevant as lot of people say. E says that inflation is already higher. And if minimum wages are increased it may become higher. But we have no information about other workers with greater wages so we cant say for sure that inflation shall increase. If min wages increased and other wages remained constant then it strengthens the argument. So basically E is not out of scope, but it covers a lesser scope.

However, C is the best that proves inflation will definitely increase.

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

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13 Aug 2009, 23:40
Now, I too agree with C.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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25 May 2010, 05:15
Chose B with POE.

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year Irrelavant
(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulationMay Be. Keep it for later.
(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.Irrelavant since the argument is not comparing different levels in labor grade as well as the argument doesn't provide any info on where the pay levels are for the "trained" resources.. And use of strong word "must". MGMAT recommendation is to avoid answers with strong words.
(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.Irrelavant since argument is not trying to differentiate between different sectors
(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 to the argument

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

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25 May 2010, 10:00
Argument "impact of hike in minimum wages will be negligible".
Question :- which statement will seriously weaken the argument.

option 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 many business higher trainees at minimum or near min. wages , then after increase in wages ,
this bar (wages of trainees will increase), hence it will have an impact on the overall wages -
but there is a catch , how many trainees will make the impact sizable, this is subjective information, depending on author's view of sizable impact.

option B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation

if some firms violate the kirlandia law and pay their workers less than minimum wages, then they will continue to do so in future also , therefore no impact on minimum wages, it actually supports the argument.

IMO C , although option C is marred with its own problems, but at the end we only have to choose the best option and go to next question...
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Re: In two months, the legal minimum wage in the country of [#permalink]

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25 May 2010, 23:41
I will go with option C

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

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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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26 May 2010, 06:59
1
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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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Re: In two months, the legal minimum wage in the country of [#permalink]

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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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26 May 2010, 13:58
1
KUDOS
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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Re: In two months, the legal minimum wage in the country of [#permalink]

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

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

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27 May 2011, 05:50
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Re: In two months, the legal minimum wage in the country of [#permalink]

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

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29 May 2011, 05:47
B
Using POE

Posted from my mobile device

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

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29 May 2011, 08:17
definitely C!

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

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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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04 Jun 2011, 21:09
+1 C
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Re: In two months, the legal minimum wage in the country of [#permalink]

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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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Re: In two months, the legal minimum wage in the country of   [#permalink] 05 Jun 2011, 06:10

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