Teenagers are often priced out of the labor market by the : GMAT Critical Reasoning (CR)
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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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25 Aug 2006, 10:15
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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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25 Aug 2006, 10:49
Looks like C.
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25 Aug 2006, 12:00
B cracks the argument.

If minimum wages were constant and still teenage unemployment rate rose then it means that the Congress caught the wrong vein. In other words B shows that minimum wages was not the reason for increasing unemployment rates.
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25 Aug 2006, 12:13
[quote="rkatl"]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.
strengthen

(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
POE. there are others factors than wage that cause unemployment.
OK.

(C) Employers often hire extra help during holiday and warm weather seasons.
strengthen.

(D) The teenage unemployment rate rose more quickly in the 1970â€™s than it did in the 1960â€™s.
and?

(E) The teenage unemployment rate has occasionally declined in the years since 1960.
and?
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25 Aug 2006, 12:22
B identifies the flaw ... if there is no correlation between teenager's employment rate and the setting of minimum wage level, then this is the wrong solution to the problem.
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25 Aug 2006, 12:59
Going with B here...

B clearly highlights that although the minimum wage has remained constant.. the unemployment rate is continuing to rise...
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25 Aug 2006, 13:08
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.

Conclusion : Unemployment rate of teenagers will not rise if lower submin. wage instituted.

B, weakes as even after the lower submin wage instituted causes rise in umemployment.
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25 Aug 2006, 18:02
yes, OA: B

but can someone clarify how is A strengthens the argument ?

Conclusion: If Congress institutes a subminimum wage, the teenage unemployment rate will no longer increase.

A says
the teenage unemployment rate has risen when the minimum wage has risen <== isn't this weekening the conclusion ?
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26 Aug 2006, 07:08
This is reasoning for A strengthening:

if (Rise in Min Wage) then (Rise in Teenage Unemployment)

if ~(Rise in Min Wage) then ~(Rise in Teenage Unemployement)

Now ~(Rise in Min Wage) : Can be either drop or maintain.

As argument talks of drop in wage, then there is no rise in teenage unemployment. Therefore, A strengthens.

Hope this helps.

rkatl wrote:
yes, OA: B

but can someone clarify how is A strengthens the argument ?

Conclusion: If Congress institutes a subminimum wage, the teenage unemployment rate will no longer increase.

A says
the teenage unemployment rate has risen when the minimum wage has risen <== isn't this weekening the conclusion ?
26 Aug 2006, 07:08
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