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

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

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New post 06 Jun 2008, 13:31
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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 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.
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New post 06 Jun 2008, 15:30
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C - for if the minimum wage goes up, the trained employees wages might have to go up as well. Hence the argument that the impact of minimal wage increase on wages is minimal is weakened.
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New post 06 Jun 2008, 16:48
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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 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
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New post 06 Jun 2008, 19:03
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 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.



I went with E on this one because I made the assumption that some workers might be working more than one job on minimal wage. But the choice doesnt really talk about multiple minimum wage jobs. :x

I can see why C could be correct. The wage increases for minimum wage workers will mean other workers will need to be paid more.
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New post 06 Jun 2008, 21:09
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I will go with C in absense of any other choice ... but i doubt weather minimum wages law is applicable to trainees,passage does't say anything about this.
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New post 07 Jun 2008, 13:02
Puma, whats the source of this question and whats the OE?

My reasoning is that in B, if some workers were paid illegally before the increase of min wages, they in all probability will continue to get paid the same dollars, as the the thing is illegally done in the first place....so this wont increase the number of workers with more money....the cause of inflation per this argument.

What do the experts say here?
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 07 Jun 2008, 16:19
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Evidence: 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.

C.

A. Irrelevant.
B. Irrelevant, since we r not talking about illegal workers.
C. This will actually weaken the statement, b'coz 'many' business hire tranieers, and these traineers r at the minimum wages mark.
D. This actually supports the arg
E. i think it is irrelavant. Even if it is not, it would only strengthen the arg.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 07 Jun 2008, 18:01
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fresinha12 wrote:
i actually went with B..


When you post something...provide the explanation as well...
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 07 Jun 2008, 19:07
Sunny143 wrote:
fresinha12 wrote:
i actually went with B..


When you post something...provide the explanation as well...


you are correct, however, i didnt post any reason cause i believe that C is correct after looking at all the posters reasons..
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post Updated on: 09 Jul 2015, 02:35
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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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Originally posted by sondenso on 02 Jun 2009, 01:56.
Last edited by JarvisR on 09 Jul 2015, 02:35, edited 1 time in total.
OA updated
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 02 Jun 2009, 02:16
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C

Argument is minimum wage hike won't drive up inflation, because not everyone is getting the pay raise (only a small proportion of workers work at minimum wage).

C shows that a lot of other workers salaries are based on the minimum wage, and if it's increased, their salaries will increase as well, logically fueling inflation.

A is out of scope, we don't care long how long they've been employed for.
B is irrelevant as adding this piece of information doesn't change anything, ppl who make < minimum wage still account for a very small portion of workers.
D is tricky, it says wages have increased, but growth has as well-- hence inflation isn't likely.
E out of scope.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 02 Jun 2009, 03:16
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IMO C

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 -->irrelevant
B. Some firms in Kirlandia have paid workers considerably less than KD5.00
per hour, in violation of kirlandic employment regulations -->strengthen: this will help keep the inflation rate low
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 -->weaken: this will help increase the inflation rate --> the best
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 -->no influence, just a fact has happened
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 --> out of scope
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 02 Jun 2009, 09:52
When doing weaken questions, there will always be a couple of answer choices that strengthen the question as well. In this case, the only choice that weakens the argument is (C), since if many firms hire employees near the minimum wage rate, the effect of inflation may not be minimal.
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New post 03 Jun 2009, 10:35
How can OA be B..

Those firms who violate the law, will continue to violate the law no matter what the minimum wage is.
in such case, there is inflation.. which supports the argument..

Any supporters of B ?
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New post 08 Jun 2009, 05:07
It's B.

B clearly weakens the argument (Inflation won't be impacted) by highlighting substantial gap as regards minimum wages.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 08 Jun 2009, 09:27
IMO D.
bkumars8 wrote:
It's B.

B clearly weakens the argument (Inflation won't be impacted) by highlighting substantial gap as regards minimum wages.


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

In B, it says that some firms ==> ok there will be no change in the salary of these workers, what about the firms who follow regulations and offer minimum wages. ==>It'll impact the inflation. Hence, Not B

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
It is talking about the trained workers, what about eh workers who just started. It may be possible that only 10% of the businesses has trained workers rest are just untrained workers or trainees.
==> Doesn't imply that it is not going to affect the average salary in the country.

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
==> These are the real sectors which are going to drive the inflation as these are the growth sectors of the economy. As they offer more than minimum wage salary, hence the regulation is not going to affect the inflation.

Guys add your opinions?
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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

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New post 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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New post 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

Best possible answer is B.
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Re: In two months, the legal minimum wage in the country of  [#permalink]

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New post 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 &nbs [#permalink] 25 May 2010, 10:00

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