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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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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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22 May 2012, 10:49
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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.

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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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22 May 2012, 10:52
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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.

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

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

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

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

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

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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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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.

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

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02 Jun 2012, 23:57
hothihongcam wrote:
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

Hi,

C indeed was a better fit.
However, could you kindly explain why D is a bit too far. Is it simply because it is weakening one of the premises(economy growth incr. when wages incr. => inflation stabilized) and not the conclusion(workers actually find the incr.in wage worthy)??

Thanks
Raghu

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

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04 Jun 2012, 18:54
puma wrote:
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 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.
(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.

Premise: The increasing in minimum wage will drive up the inflation (1)

Conclusion: (1) is wrong because the proportion of Kirlandc workers who are receiving less than KD5.5 per hour is very small

The question stem is finding the weakened answer. Base on this conclusion, we are easy to find the answer which weakens it by find the proof that shows the proportion of workers who get wage under KD5.5 is very large.

Choice C is the correct answer, which states that there are many businesses hire trainee near KD 5.00/hour => There are many workers in this kinds of trainee => If the minimum wage increase, the wages of these trainees also increase, driving up the inlfation.
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Re: 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
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Re: In two months, the legal minimum wage in the country of [#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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Re: In two months, the legal minimum wage in the country of [#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 [#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 [#permalink]

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01 Feb 2013, 19:37
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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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06 Feb 2014, 06:00
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 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.

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Totally agree with GyanOne on this one.
Can we have the OA reviewed please? I hope its C

Please correct OA on this one, just confirmed that answer is C ok?

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

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