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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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02 Jun 2009, 01:56
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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.
[Reveal] Spoiler: OA

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Last edited by JarvisR on 09 Jul 2015, 02:35, 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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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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02 Jun 2009, 03:16
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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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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Re: In two months, the legal minimum wage in the country of [#permalink]

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02 Jun 2009, 18:53
OA is B, I think OA wrong!
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Re: In two months, the legal minimum wage in the country of [#permalink]

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

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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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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.

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(2:07)
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Re: In two months, the legal minimum wage in the country of [#permalink]

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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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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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13 Aug 2009, 23:40
Now, I too agree with C.
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Re: In two months, the legal minimum wage in the country of [#permalink]

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20 Jul 2016, 09:16
Can someone please explain this question in detail. Esp option C and D.
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In two months, the legal minimum wage in the country of [#permalink]

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20 Jul 2016, 13:24
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Expert's post
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.
In two months, the legal minimum wage in the country of   [#permalink] 20 Jul 2016, 13:24
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