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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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20 Jul 2016, 12:24
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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.

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

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07 Oct 2016, 07:12
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Re: In two months, the legal minimum wage in the country of [#permalink]

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15 Apr 2017, 00:24
Hello from the GMAT Club VerbalBot!

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

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15 Apr 2017, 01:44
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

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

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17 Apr 2017, 14:28
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.

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

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09 Jul 2017, 05:16
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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.
=> B is the answer

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

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02 Aug 2017, 11:45
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

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

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03 Aug 2017, 08:03
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 answer is C

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

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

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03 Sep 2017, 09:33
sayantanc2k

Hi satyan

Do you think sentence has been framed wrongly?

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

Instead it should be -
In fact its impact on inflation will probably be negligible.

I marked the question wrong because of this. Pl advice

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

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31 Dec 2017, 22:50
Its a gmat EP2 question. Please add a tag of EP2

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Re: In two months, the legal minimum wage in the country of   [#permalink] 31 Dec 2017, 22:50

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

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