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Teenagers are often priced out of the labor market by the

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Director
Joined: 15 Aug 2005
Posts: 796
Location: Singapore
Teenagers are often priced out of the labor market by the [#permalink]

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13 Sep 2005, 03:04
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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 1970â€™s than it did in the 1960â€™s.
(E) The teenage unemployment rate has occasionally declined in the years since 1960.
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Cheers, Rahul.

SVP
Joined: 28 May 2005
Posts: 1705
Location: Dhaka

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13 Sep 2005, 03:08
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hey ya......

Current Student
Joined: 29 Jan 2005
Posts: 5218

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13 Sep 2005, 03:25
I agree. E uses occasionally rather ambiguously, nevertheless every other option strengthens the argument.
Director
Joined: 15 Aug 2005
Posts: 796
Location: Singapore

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13 Sep 2005, 03:30
It irritates me at times! OA is B!!!!!!!!!!
I find no logic whatsoever for B to be the OA!
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Cheers, Rahul.

Current Student
Joined: 29 Jan 2005
Posts: 5218

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13 Sep 2005, 03:55
How can it be B? B requires the test taker to have some sort of financial background; given that as time passes, the value of the minimum wage in present dollars depreciates in accordance with inflation (amongst other factors...) Thereby, saving the small business owners from paying higher wages to the teenagers. What's the OE on this one?
Director
Joined: 15 Aug 2005
Posts: 796
Location: Singapore

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13 Sep 2005, 04:08
Oh there is no OE for this!! Just an OA!!

I guess I should stop doing from this set...many questions, I was surprised by the OAs!!
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Cheers, Rahul.

GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5043
Location: Singapore

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13 Sep 2005, 05:07
I go with E too. The fact that the unemployment did dipped once means that it's not just the minimum wage that caused the unemployment rate to go up.
Intern
Joined: 23 Aug 2005
Posts: 2

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13 Sep 2005, 14:29
I just wrote out a detailed expanation for this but I got timed out...and so I'm going to rewrite this.

Okay, here's another way to approach this problem. Let's look at the conclusion and the premise.

Conclusion: Congress should pass a sub min-wage law to keep teenage unemployment from rising.

Premise: (1) Employers can not afford to hire teenagers. (2) Since the 1960's, teenage unemployment rate has been rising.

Now, we are looking for an answer that will WEAKEN this argument, so anything to the extent that said that the new law will not help teenage unemployment levels from declining will be perfect.

A. supports the conclusion that a min sub wage law is necessary. so, we can eliminate.

B. this works because it goes against the conclusion by saying that teenage unemployment went up even when min wage is constant. If the logic that they use to support this works, then teenage unemployment should not have went up but should have remain constant.

C. Does not work, out of scope.

D. Does not work, 1970's was not mentioned.

E. Occassionally decline is arbitary, it could have increase somewhere down the line.

In all, B makes the strongest argument. Hope this helps...
Senior Manager
Joined: 29 Nov 2004
Posts: 483
Location: Chicago

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13 Sep 2005, 16:43
Nice explanation above, I thought B too..it follows there is no relation between salary increase or decrease and unemployment rate...
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Director
Joined: 15 Aug 2005
Posts: 796
Location: Singapore

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13 Sep 2005, 17:47
B. this works because it goes against the conclusion by saying that teenage unemployment went up even when min wage is constant. If the logic that they use to support this works, then teenage unemployment should not have went up but should have remain constant.

Not clear at all!
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Cheers, Rahul.

13 Sep 2005, 17:47
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