GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 19 Aug 2018, 21:41

### 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

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

Author Message
Intern
Joined: 06 May 2015
Posts: 6
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

14 May 2015, 21:43
2
sannidhya wrote:
Argument 1 : wage increase will lead to inflation rise.
Argument 2: very few workers receive less than KD5.50

How is C weakening these?

I agree that this question is tricky. I picked C because the others obviously did nothing, and this answer seemed to leave the door open to weaken the argument. Have you noticed that the GMAT always tries to make the right answers a little cloudier? After I while, you can kind of just pick up on the GMAT's style knowing how sneaky they are.

Here's why I think C is right, legitimately: say you live in a world in which C comes true.

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.

What would happen to wages at or near the minimum level? There would be a whole wave of increased wages. It would shift this huge pool of intern's wages higher, and increase their pay when they get hired. What other answer poses that inflationary risk?
Intern
Joined: 02 Apr 2014
Posts: 9
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

26 Jul 2015, 04:29
1
Intern
Joined: 05 Mar 2016
Posts: 9
Concentration: Finance, Strategy
Schools: Imperial '18
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

08 Mar 2016, 14:16
1
Minimum wage has been increased. Very small portion r currently receiving less than KD5.50 per hr. Inflatioin will rise.
Conclusion: Change in minmum wages will be negligible.

We need to weaken the conclusion, that the change will indeed have an effect.

go for C.
_________________

Please press 1 kudos if you like my post .Thanks

Manager
Joined: 05 Sep 2014
Posts: 83
Schools: IIMB
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

16 May 2016, 11:31
1
Sunny143 wrote:
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 resilting 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 seriuosly 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 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.

Inflation is caused by too many dollars chasing too few goods with the resulting rise in prices. The central premise of the argument is that there wont be too many dollars out there in the market as the number of min wage workers are less in Kirlandia so the cummulative increase wont push inflation up. With this background, lets see the choices

A. Not relevant to increase money in the market.
B. This is an interesting one. Since this has gone unreported, the recent rise wont touch these folks, they will continue to get considerably less anyway.
C. If trainees get near minimum wage levels, so when the min wage levels go up, their wages will also go up. Hence this will have an effect of more money coming into the economy and driving up inflation....weakens
D. Not relevant
E. Not relevant.

C

Hi,

Thank you for posting your explanation but I am confused here, it says in argument that opponents of this policy are saying that inflation rate would go up , are we weakening opponents argument or opposing the policy over here ,because C is says that it would drive up the inflation hence supporting the opponent argument.

Would really appreciate your help on this.

Thanks
Megha
Board of Directors
Status: QA & VA Forum Moderator
Joined: 11 Jun 2011
Posts: 3789
Location: India
GPA: 3.5
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

16 May 2016, 13:13
1
1
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.

Option (C) states -

Trainees = Minimum wage ( KD5.50 per hour )
Trained workers = Above Minimum wages of KD5.50 per hour

The conclusion states that -

Quote:
only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour.

But from option (C) we can see that both skilled ( trained) and unskilled (trainee ) will be receiving hourly salary of KD 5.50 or more, thus it is affecting the entire workforce...

Hence option (C) is the correct answer choice as it is a weakener !!

megha_2709 wrote:

Hi,

Thank you for posting your explanation but I am confused here, it says in argument that opponents of this policy are saying that inflation rate would go up , are we weakening opponents argument or opposing the policy over here ,because C is says that it would drive up the inflation hence supporting the opponent argument.

Would really appreciate your help on this.

Thanks
Megha

Rise in wages will occur on a small scale ------->Won't drive up the rate of Inflation

We are attempting to weaken the argument that Rise in wages will occur on a large scale and will drive up inflation ( As a result )
_________________

Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )

Manager
Joined: 05 Sep 2014
Posts: 83
Schools: IIMB
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

16 May 2016, 14:47
1
Aah great explanation , thank you for explaining so well . I think my mistake was overlooking the conclusion a bit and hence selected the wrong choice.

Quote:

megha_2709 wrote:

Hi,

Thank you for posting your explanation but I am confused here, it says in argument that opponents of this policy are saying that inflation rate would go up , are we weakening opponents argument or opposing the policy over here ,because C is says that it would drive up the inflation hence supporting the opponent argument.

Would really appreciate your help on this.

Thanks
Megha

Rise in wages will occur on a small scale ------->Won't drive up the rate of Inflation

We are attempting to weaken the argument that Rise in wages will occur on a large scale and will drive up inflation ( As a result )
_________________

So we are strengthening the opponent view and that author is wrong ,rise in wages will lead to rise in inflation. I mistook the lines starting from infact as opponent point of view.

Thanks a lot for clarifying, great great help !!!

Regards
Megha
Intern
Joined: 12 Jun 2015
Posts: 47
Schools: Sloan '19
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

20 Jul 2016, 09:16
Can someone please explain this question in detail. Esp option C and D.
Retired Moderator
Joined: 14 Dec 2013
Posts: 3188
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

20 Jul 2016, 13:24
8
gmatlbs wrote:
Can someone please explain this question in detail. Esp option C and D.

Option C:
Currently the trainees get KD 5 per hour and the trained workers get KD 6 (say) per hour. The difference KD 1 is the reward of the skilled workers. If the minimum pay increases to KD 5.5, the trainees will be required to be paid KD 5.5. In order to maintain the same reward for the trained workers, the wage of the trained workers will also be needed to be increased to KD 6.5. Therefore increasing the minimum wage will have a direct effect on the wage of trainees and an indirect effect on the wage of the trained workers, and therefore the impact will not be negligible, as the argument claims. Hence C weakens the argument.

Option D:
If we can correlate growth in economy with number of workers, we can say that the number of workers has increased in those sectors in which the salaries are much higher than the minimum 5.5 per hour. Having many employees whose salaries are say KD 15 per hour, does not weaken the argument. In a way it is actually in line the argument that increase in minimum wage would not affect the economy, because for many employees wages will not be needed to be revised as their wages are already very high.
Manager
Joined: 20 Aug 2016
Posts: 57
GMAT 1: 650 Q48 V31
GMAT 2: 670 Q45 V36
GMAT 3: 680 Q47 V35
GMAT 4: 720 Q49 V40
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

15 Apr 2017, 02:44
C Seems correct. It is the only option that shows a drawback even if few people will be affected by the minimum wages.

Sent from my XT1562 using GMAT Club Forum mobile app
Manager
Joined: 13 Dec 2013
Posts: 161
Location: United States (NY)
GMAT 1: 710 Q46 V41
GMAT 2: 720 Q48 V40
GPA: 4
WE: Consulting (Consulting)
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

17 Apr 2017, 15:28
tuanquang269 wrote:
This is my new project: Renew Old Thread => Back to basic => Just try It and give your reasoning

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.

Conclusion: the impact of the increase in the wage will be negligible since very few people are receiving less than 5.5 kd (it says that people might be earning wages The rate of 1000 kd or 2000 kd or even 100 kd). thus will not be effected.
We are asked to weaken this.

A Most people in kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year. ---> earning and getting back a job has nothing to do with it. - incorrect

B Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulations. --> Relevent information to weaken the conclusion.this says that people are earning less then 5.00 KD and thus the regulation will effect the wages.

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. --> wages of trainees < wages of existing employees - whats the point ? irrelevant.

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 .talking bout sectors where kirlanda's growth has happened. insufficient
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.
---> trying to make ends meet? irrelevant

Incorrect. B states that some firms violate the regulations. In this case, it's logical they would continue to violate the regulations once the minimum wage is increased. Therefore, this statement actually strengthens the argument.

C tells us that if trainees are paid more, then trained workers will also have to paid more since their pay levels must be above those of trainees. So, this statement directly counters the argument, which states only a very small proportion will be affected.
Intern
Joined: 10 Dec 2014
Posts: 46
Concentration: Marketing
GMAT 1: 750 Q50 V41
WE: Marketing (Manufacturing)
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

09 Jul 2017, 06:16
3
gmihir 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 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.

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. => Background info
Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. => Counterpoint
In fact its impact on wages will probably be negligible, => Conclusion
since only a very small proportion of all Kirlandic workers is currently receiving less than KD5.50 per hour. => Premise supporting Conclusion

What would weaken this argument? It will be the one that questions the Premise that supports Conclusion.
Premise says only a small portion of workers got paid less than 5.50.
=> Only B questions as it says that there exist firms that violate employment regulations by paying less than 5.50. This violation indicates that Premise underestimates the real life that there are more than a small portion of workers got paid lower than 5.50.

--
Please give a kudos if you find this post useful.
Senior Manager
Joined: 15 Jan 2017
Posts: 367
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

02 Aug 2017, 12:45
Took e 4.5 minutes to get this. Really wish this doesn't happen on the GMAT. A really, really good question given the depth of each option and our imaginations getting us to conclusions that is far away from the argument
n two months, the PREMISElegal 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. AUTHOR ARGUESIn 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?
We need to thus look for something that 1) shows the impact IS NOT negligible 2) Will drive up inflation - meaning overall growth in prices/ goods anyone can afford (a very layman understanding of the arguments' conclusion, but I am just trying to get it to real life scenarios)

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year - so basically, they will earn more later - will it drive up inflation though? We don't know the base number or proportion of employees. OUT

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulationOkay, good to know evil capitalist behavior

(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. Did not at all jump at me - but then I realised, if a baseline number of trainees are hired at minimum wage or lower; retention would cost more - thus if many companies follow this, the overall salaries are higher and can possibly drive up inflation. Its what happens in quite a few developing countries capitals' - the prices and salaries go up but the value of goods actually depreciates

(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. Growth rate can happen despite high inflation - has no bearing

(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. Yes it came close - but was negated by text within the argument 'most firms pay above minimum wage' - so even though its half dollar more, the terminology in E makes it irrelevant
VP
Status: Learning
Joined: 20 Dec 2015
Posts: 1218
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

03 Aug 2017, 09:03
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.

The argument says that the increase in the minimum wage is not going to have any effect on the economy more over on the inflation because already workers are paid more or same amount as the new minimum wage .
But if that is the case what abut the new hires who join the company and many other workers who do not get as much as the new minimum wage , if it is increased for them then it will have effects on the economy .

C is essentially saying this

_________________

Intern
Joined: 08 Jan 2015
Posts: 17
Location: India
GMAT 1: 690 Q50 V33
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

03 Sep 2017, 10:33
sayantanc2k

Hi satyan

Do you think sentence has been framed wrongly?

Argument states -
In fact its impact on wages will probably be negligible.

In fact its impact on inflation will probably be negligible.

I marked the question wrong because of this. Pl advice
Intern
Joined: 28 Jan 2014
Posts: 1
Location: Pakistan
GMAT 1: 710 Q49 V36
GPA: 3.77
Re: In two months, the legal minimum wage in the country of  [#permalink]

### Show Tags

31 Dec 2017, 23:50
Re: In two months, the legal minimum wage in the country of &nbs [#permalink] 31 Dec 2017, 23:50

Go to page   Previous    1   2   3   4   [ 75 posts ]

Display posts from previous: Sort by

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

Moderators: GMATNinja, GMATNinjaTwo

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.