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# Neither rising industrial output nor a high national minimum

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Manager
Status: Prepping for the last time....
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Location: Australia
Concentration: Technology, Strategy
GMAT 1: 630 Q47 V29
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Neither rising industrial output nor a high national minimum [#permalink]

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17 Jul 2010, 18:39
00:00

Difficulty:

45% (medium)

Question Stats:

65% (01:13) correct 35% (01:41) wrong based on 120 sessions

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Neither rising industrial output nor a high national minimum wage, by itself, establishes a country's economic well-being. Both are required simultaneously since industrial output can rise as a result of a low minimum wage and a high minimum wage prompts many industries to relocate to countries where the minimum wage is lower, thus decreasing a country's industrial output.

If the facts stated in the passage above are true, a proper test of a country's economic well-being is its ability to______.

A maintain a high minimum wage while its industrial output rises
B maintain a high minimum wage while its industrial output falls
C increase minimum wage while its industrial output remains constant
D keep the industrial output constant while its minimum wage falls
E maintain a low minimum wage while its industrial output rises
[Reveal] Spoiler: OA

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Last edited by JarvisR on 15 Jul 2015, 02:26, edited 1 time in total.
OA updated

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Re: Neither rising industrial output nor a high national minimum [#permalink]

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17 Jul 2010, 21:19
(A)maintain a high minimum wage while its industrial output rises>>make sense, correct
(B)increase minimum wage while its industrial output remains constant>> if high min wage keeps on increasing and industrial output(low) remains constant. Given this high minimum wage prompts many industries to relocate to countries where the minimum wage is lower, thus decreasing a country's industrial output

A my pick
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Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
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Re: Neither rising industrial output nor a high national minimum [#permalink]

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18 Jul 2010, 00:34
1
KUDOS
10000% A

I am thinking why GMAC make this CR? The answer is so obvious - Both are required simultaneously.

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Re: Neither rising industrial output nor a high national minimum [#permalink]

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18 Jul 2010, 02:56
A is obviously the correct answer.
Initially thought that C is also correct. If your factory is selling the product at a higher price or other costs were reduced or the process is more efficient, then you can maintain the production level and pay higher wages. But the stem uses the verb 'rise' linked to industrial output, not to wages. Wages are considered not as increasing, but as high or low levels. That's why C is wrong.

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Re: Neither rising industrial output nor a high national minimum [#permalink]

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19 Jul 2010, 20:20
A for me.

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Re: Neither rising industrial output nor a high national minimum [#permalink]

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26 Jul 2010, 06:30

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Senior Manager
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Re: Neither rising industrial output nor a high national minimum [#permalink]

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14 Aug 2010, 23:26
Its got to be A

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Intern
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Re: Neither rising industrial output nor a high national minimum [#permalink]

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15 Aug 2010, 09:06
Surely A

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Re: Neither rising industrial output nor a high national minimum [#permalink]

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15 Aug 2010, 16:33
I have just done similar Q in OG12. A is surely correct
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Re: Neither rising industrial output nor a high national minimum [#permalink]

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17 Aug 2010, 14:03
A

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Re: Neither rising industrial output nor a high national minimum   [#permalink] 17 Aug 2010, 14:03
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# Neither rising industrial output nor a high national minimum

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