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

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Current Student
Joined: 06 Sep 2013
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Concentration: Finance
Re: In two months, the legal minimum wage in the country of [#permalink]

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24 May 2014, 14:00
Bumping here for experts opinion on B vs. C, I honestly think C is a much stronger choice...but still I'm no CR expert
Eager to see replies by pqhai, RJacobs and other CR monsters out there.

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

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24 May 2014, 23:31
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.

POE:
A. The duration of employment at minimum wage has no bearing on whether raising the minimum pay will trigger inflation.
B. If they are in violation now, then they can be in violation at any point in time. Changing the minimum legal wage has no impact on people who are already working outside the legal boundary.
C. This is correct. If the businesses pay minimum wage to trainees and have to maintain a higher pay for trained workers then increasing the minimum wage for the trainees will force the businesses to also increase the wages of the trained workers. This may have an impact of triggering inflation.
D. We are not worried the sector that has given growth to Kirlandia; we are worried about Kirlandia as a whole.
E. We are not worried about whether the current minimum wage is enough to sustain a person with a single job. We are worried about whether the increase in minimum wage will trigger inflation.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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25 May 2014, 15:35
well lets consider what is lnflation i.e price rise due to excess money supply or less supply of goods (more demand than supply) , c does not mention that anything nor does passage mention about trainee workers or tenured workers but in e we find that workers reciving 5 \$ dont find it enough to sustain life well then increase in payscale would not lead to inflation as it is not resulting in "excess money". please tell me where i am wrong
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Re: In two months, the legal minimum wage in the country of [#permalink]

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02 Jun 2014, 08:30
Agree that C is best answer. Can we get the OA changed?

(IMO none of the choices are great, but C is the best of the bunch.)
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Re: In two months, the legal minimum wage in the country of [#permalink]

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02 Jun 2014, 12:53
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Puzzler wrote:
Agree that C is best answer. Can we get the OA changed?

(IMO none of the choices are great, but C is the best of the bunch.)

I was going to edit the above post, but I can only enter a URL on posts 6+. (This will be #6.)

My edit: Down at the bottom of the thread there is the option to link to "Similar Posts," and you can see that this same question has been listed many times. I linked to in-two-months-the-legal-minimum-wage-in-the-country-of-65039.html?fl=similar, and found OA of "C."
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Re: In two months, the legal minimum wage in the country of [#permalink]

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27 Jul 2014, 06:47
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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.
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Last edited by bb on 15 Apr 2017, 13:24, edited 1 time in total.
Updated OA
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Re: In two months, the legal minimum wage in the country of [#permalink]

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27 Jul 2014, 09:24
Please verify the OA as I feel the correct answer should be C and not B. Option C directly affects the conclusion and weakens the conclusion most.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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27 Jul 2014, 10:55
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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
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Re: In two months, the legal minimum wage in the country of [#permalink]

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12 May 2015, 20:45
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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 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.
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Joined: 06 May 2015
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Re: In two months, the legal minimum wage in the country of [#permalink]

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12 May 2015, 20:55
The right answer has to somehow increase the size of the minimum wage workforce. Option C is the only one that does so significantly. B refers to under the table workers, but it just says 'some' so it's not significant like answer C is.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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13 May 2015, 00:00
Argument 1 : wage increase will lead to inflation rise.
Argument 2: very few workers receive less than KD5.50

How is C weakening these?
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Re: In two months, the legal minimum wage in the country of [#permalink]

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14 May 2015, 20:43
1
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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?
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Re: In two months, the legal minimum wage in the country of [#permalink]

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25 Jul 2015, 21:44
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Re: In two months, the legal minimum wage in the country of [#permalink]

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26 Jul 2015, 03:29
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Re: In two months, the legal minimum wage in the country of [#permalink]

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08 Mar 2016, 03:52
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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08 Mar 2016, 13:16
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.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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16 May 2016, 10:31
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
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Re: In two months, the legal minimum wage in the country of [#permalink]

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16 May 2016, 12:13
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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 )
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Re: In two months, the legal minimum wage in the country of [#permalink]

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16 May 2016, 13:47
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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 )
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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
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Re: In two months, the legal minimum wage in the country of [#permalink]

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20 Jul 2016, 08:16
Can someone please explain this question in detail. Esp option C and D.
Re: In two months, the legal minimum wage in the country of   [#permalink] 20 Jul 2016, 08:16

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