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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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15 Jan 2010, 06:14
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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.

Answer is not E but B. Let's discuss why not E. Let me know what is your logic.
[Reveal] Spoiler: OA

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

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15 Jan 2010, 06:28
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I think, because the questions is related to 2 parts, minimum wage and the decrease in teenager's rate of working. Among these questions, only B involve in those two ideas.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Jan 2010, 10:40
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Answer is clearly B , which states that the rate of unemployment is not dependent on the minimum wage. this statement weakens the arguments conclusion that raising minimum wage will increase unemployment.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Jan 2010, 11:18
Thanks...I choose B too but wanted be sync with others about the logic
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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16 Jan 2010, 13:12
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Its a cause effect reasoning question.

Clearly the answer is B as it shows that the minimum ages has no effect on the rise of teenage unemployment.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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06 Jun 2010, 04:35
Though I marked B, which clearly says the MW is constant so there has to be some other reasons for high UR. But, there is an interesting thing to note that in A, the MW is increasing besides rate of Unemployement.

So, this also can be correct. What do you think guys?
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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06 Jun 2010, 04:57
B states that there is no effect on teenage unemployment rate when MW remains constant .. How can we deduce from this that the teenage unemployment will increase or decrease or remain constant even if MW is decreased or increased ?

By the reasoning others are giving .. if B is right then A should also be right .. as ykaiim pointed out.

I feel E is a better option as it states that unemployment rate has decreased since 1960 without any modification to MW. So there are other factors affecting unemployment rate.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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06 Jun 2010, 07:17
SudiptoGmat 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.

Answer is not E but B. Let's discuss why not E. Let me know what is your logic.

I picked up B.
conclusion is C (institution of lower wage) ---> (unemployment rate for teenage will not increase) E
hence anything if we could show that the cause was there i.e. equivalent lower age but unemployment rate is not impacted. also by POE you B is the only one which impacts the conclusion.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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27 Jan 2011, 08:48
Only B seems right.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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27 Jan 2011, 09:52
+1 B
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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27 Jan 2011, 11:55
B it is for the same reason dmetla said.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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27 Jan 2011, 12:45
Why is A wrong?

Posted from my mobile device
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Feb 2011, 11:29
Can anyone help in explaning why A is wrong?
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Feb 2011, 16:50
Conclusion: If the Congress lowers the minimum wage for the teenagers, the teenage unemployment rate will stop increasing.

In other words, the author believes that the minimum wage is causing the teenage unemplyoment rate to increase. Keep in mind that this is a Weaken question, which means you need to look for a flaw in the author's reasoning. The reason A is incorrect is becasue it strengthen the author's conclusion by showing a causation between minimum wage and teenage unemployment rate.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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15 Feb 2011, 17:01
great! thanks I did know the question was about casual effect... is there key words that stand out ? or just because of the situation?
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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16 Feb 2011, 00:12
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If you are using trend in the unemployment rate as an argument, you need to have compared trend in wages. There is nothing in question stem which gives you any idea of whether wages have occassionally increased or decreased or remained constant snce 1960.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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07 Mar 2011, 09:02
The argument is saying ' employers cannot afford to pay that much (minimum-wage level ) for extra help.' that means it does not matter the minimum-wage is high or low or remains constant, employers want to pay teenagers less than minimum-wage, because even the minimum-wage is low, employers can hire adults why bother to hire teenagers.

So i don't think B weakens the argument -- it's actually in line with the conclusion.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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07 Mar 2011, 09:08
Yeah you are right - the argument is assuming that lowering min wage will lower the unemployment rate. To sabotage the conclusion - attack that assumption. B is doing exactly this.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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07 Mar 2011, 10:23
hmm, I don't think 'the argument is assuming that lowering min wage will lower the unemployment rate.', it assumes 'having a lower wage than min wage for teenagers will lower the unemployment rate of teenagers', so even the min wage is lowest for decades, employers still would not hire teenager because they can hire adults for that wage, that is to say, employers will hire teenagers for extra help only paying them lower than min wage.
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Re: Teenagers are often priced out of the labor market by the [#permalink]

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12 Jul 2013, 00:06
SudiptoGmat 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.

Answer is not E but B. Let's discuss why not E. Let me know what is your logic.

Hi SD,
B says that minimum wage remains constant since 1960. Ok that's great but it is no where mention that the constant MW was remain under employer's affordable range throughout decades and hence since 1960 the teenage unemployment rate has been rising constantly. I am not seeing the requirement of any other factor except MW to explain the rising trend of unemployment.
Well once it is assumed that the constant value of the MW since 1960 is actually under the affordable range of employers and still unemployment is rising then the need for the other factors is required to explain the trend.
Hence B doesn't weaken the argument as it requires an extra assumption to prove it. I would go with option E, which directly denies the validity of conclusion.
Correct me if I am wrong!
Re: Teenagers are often priced out of the labor market by the   [#permalink] 12 Jul 2013, 00:06

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