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# Teenagers are often priced out of the labor market by the

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Teenagers are often priced out of the labor market by the [#permalink]

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20 Sep 2011, 21:16
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Teenagers are often priced out of the labor market by the government-mandated minimum-wage level because employers cannot afford to pay that much for extra help. Therefore, if Congress institutes a subminimum wage, a new lower legal wage for teenagers, the teenage unemployment rate, which has been rising since 1960, will no longer increase.

Which of the following, if true, would most weaken the argument above?

(a)Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
(b)Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
(c)Employers often hire extra help during holiday and warm weather seasons.
(d)The teenage unemployment rate rose more quickly in the 1970's than it did in the 1960's.
(e)The teenage unemployment rate has occasionally declined in the years since 1960.
[Reveal] Spoiler: OA

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21 Sep 2011, 09:39
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Practicegmat wrote:
Teenagers are often priced out of the labor market by the government-mandated minimum-wage level because employers cannot afford to pay that much for extra help. Therefore, if Congress institutes a subminimum wage, a new lower legal wage for teenagers, the teenage unemployment rate, which has been rising since 1960, will no longer increase.

Which of the following, if true, would most weaken the argument above?

(a)Since 1960 the teenage unemployment rate has risen when the minimum wage has risen. --Strengthener.
(b)Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant. --Weakener. Shows effect(unemployment increment) has taken place but the supposedly cause (minimum wage increment) hasn't.
(c)Employers often hire extra help during holiday and warm weather seasons. Out of scope.
(d)The teenage unemployment rate rose more quickly in the 1970's than it did in the 1960's. Out of scope.
(e)The teenage unemployment rate has occasionally declined in the years since 1960. Irrelevant.

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21 Sep 2011, 21:23

But am still confused. Am not getting still why (a) strengthens. I had marked (a) as the answer
I might have not understood the question still ...

"minimum wage has risen" in (a) means - the wage has decreased or increased?Could you please explain ?

Thanks
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22 Sep 2011, 01:35
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Premise: There is a certain government-mandated minimum wage. Let suppose \$100. Company has to pay minimum \$100 to everyone who works at company including teenagers.
Premise: Company says \$100 is too much wage for a teenager. Company doesn't want to pay minimum wage i.e \$100 to teenagers. Hence teenagers find themselves unemployed.
Conclusion: To curb teenager unemployment, author is suggesting that congress institute sub-minimum wage lets say \$50 so that it is affordable for company to pay to teenagers. hence teenager unemployment rate will reduce.

Cause----------------------------------->Effect
High Minimum Wage(\$100)----------------->High Teenage Unemployment.

Which of the following, if true, would most weaken the argument above?

(a)Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
Minimum wage has risen i.e say it became from \$50 to \$100 and therefore unemployment rate has risen. This is exactly what author is saying. Company could pay \$50. But \$100, company is saying is too much for teenagers.
Cause -------------------------------->Effect
Minimum Wage Increment(\$50--->\$100)------------------->Unemployment rate increase

(b)Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
Minimum wage remained at constant say at \$50 from 1960. Still you find that teenage unemployment rate is rising. Therefore, there must be some other factor other than minimum wage that is causing high teenage unemployment.
Cause--------------------------------->Effect.
Some other cause-----------------------> Unemployment rate increase.

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22 Sep 2011, 06:01
B it is. B states that the minimum wage is not actually contributing to the high unemployment in teenagers.

Good questions
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22 Sep 2011, 09:00
I am confused between A & B.
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22 Sep 2011, 12:31
Teenagers are often priced out of the labor market by the government-mandated minimum-wage level because employers cannot afford to pay that much for extra help. Therefore, if Congress institutes a subminimum wage, a new lower legal wage for teenagers, the teenage unemployment rate, which has been rising since 1960, will no longer increase.

Which of the following, if true, would most weaken the argument above?

(a)Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.This is straightforward and agrees with the EVIDENCE

(b)Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.CORRECT....This is clearly attacking the conclusion

(c)Employers often hire extra help during holiday and warm weather seasons.It does add something but not weakening it

(d)The teenage unemployment rate rose more quickly in the 1970's than it did in the 1960's.Unnecessary

(e)The teenage unemployment rate has occasionally declined in the years since 1960.Out of scope
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26 Sep 2011, 20:58
great explanations ! thanks everyone
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26 Sep 2011, 21:04
great explanations ! thanks everyone
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Nov 2011, 23:00
I think E is the right answer here.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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05 Apr 2015, 20:18
The question asks for an answer choice that weakens the argument; the conclusion is that a subminimum wage would halt the increase in the teenage unemployment rate. The argument states that the minimum wage prices teenagers out of the labor market, but doesn't address why the unemployment rate for teenagers has been increasing since the 1960s. The assumption is that the minimum wage is responsible for the rising unemployment rate. If choice A were true, and the unemployment rate was rising at the same time as the minimum wage was rising, the correlation between the two would strengthen the causal argument. Since we're trying to weaken the argument, A is therefore not a good choice. B, on the other hand, eliminates that correlation and therefore weakens the likelihood of a causal connection. B is the best choice.
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Teenagers are often priced out of the labor market by the [#permalink]

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07 Jun 2016, 12:34
Practicegmat wrote:
Teenagers are often priced out of the labor market by the government-mandated minimum-wage level because employers cannot afford to pay that much for extra help. Therefore, if Congress institutes a subminimum wage, a new lower legal wage for teenagers, the teenage unemployment rate, which has been rising since 1960, will no longer increase.

Which of the following, if true, would most weaken the argument above?

(a)Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
(b)Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
(c)Employers often hire extra help during holiday and warm weather seasons.
(d)The teenage unemployment rate rose more quickly in the 1970's than it did in the 1960's.
(e)The teenage unemployment rate has occasionally declined in the years since 1960.

Tempted to choose Between A and B.Later I found Answer Choice A actually Strengthens the Argument,Answer choice B clearly weakens the argument
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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12 Oct 2016, 13:53
(b)Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
This does not weakens
Lets say in 1960 the unemp rate is 10%, due to minimum wage the teenagers are not being recruited year on year and more teenagers started sitting idel and the unemp rate increases slowly.

(e)The teenage unemployment rate has occasionally declined in the years since 1960.
If the unemp rate occassionally decreases it means it is not the min wage that causes fluctuations but some other factors like inflation, economic/social conditions, increase/decrease in teenage strength ...

E should be the right answer.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Sep 2017, 07:48
I think E is the right answer.

Option B says... same rate however option E raises possibility of third factor affecting that rate..
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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02 Oct 2017, 04:51
E should be the right answer as no where it has been mentioned that the rising rate of minimum wage is not directly proportional to rising unemployment rate
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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04 Oct 2017, 14:46
souvik101990 wrote:
The question asks for an answer choice that weakens the argument; the conclusion is that a subminimum wage would halt the increase in the teenage unemployment rate. The argument states that the minimum wage prices teenagers out of the labor market, but doesn't address why the unemployment rate for teenagers has been increasing since the 1960s. The assumption is that the minimum wage is responsible for the rising unemployment rate. If choice A were true, and the unemployment rate was rising at the same time as the minimum wage was rising, the correlation between the two would strengthen the causal argument. Since we're trying to weaken the argument, A is therefore not a good choice. B, on the other hand, eliminates that correlation and therefore weakens the likelihood of a causal connection. B is the best choice.

Hi souvik101990,
Could you please explain why E is wrong? B states that unemployment was rising even when the wages were constant. This might be possible when wage is let's say 10\$ but the number of teenagers are increasing. Hence they cannot be employed. But when the wage is decreases, teenagers might become eligible for employment which would lead to reduction in unemployment figure.
Whereas E states that in 1960s the rate didn't come down, so its likely that even the subminimum wage might not be able to bring this rate down.
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Re: Teenagers are often priced out of the labor market by the   [#permalink] 04 Oct 2017, 14:46
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