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Teenagers are often priced out of the labor market by the government-m

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

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New post 01 Nov 2005, 04:16
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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 1970тАЩs than it did in the 1960тАЩs.

(E) The teenage unemployment rate has occasionally declined in the years since 1960.

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

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New post 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 wage  [#permalink]

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New post 29 Jun 2010, 14:19
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C, D and E can be easily eliminated and we remain to chose between A and B.

A. Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
-- This will infact strengthen the argument. There might be possibility that if the minimum wage kept constant, unemployment can be reduced. Hence A is not a correct option.

B. Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
-- This is a correct answer choice. If this is true, it shows the minimum wage has no direct correlation with the unemployment. Hence even if the minimum wage is reduced to new lower lever, it is not necessary that unemployment will stop increasing.

C. Employers often hire extra help during holiday and warm weather seasons.
-- This is irrelevant information and has neutral effect on the argument. Hence C is a incorrect answer choice.

D. The teenage unemployment rate rose more quickly in the 1970's than it did in the 1960's.
-- This might be possible but has no impact on the conclusion. Hence D is an incorrect answer choice.

E. The teenage unemployment rate has occasionally declined in the years since 1960.
-- This is an opposite answer. It is strengthening the argument. Hence E cannot be a correct answer choice.

Thank You.

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

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New post 15 Feb 2011, 16:50
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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 government-m  [#permalink]

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New post 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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New post 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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Re: Weakening CR  [#permalink]

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New post 21 Sep 2011, 21:23
Thanks for the reply !

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 ?

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Re: Weakening CR  [#permalink]

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New post 22 Sep 2011, 01:35
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I will try.
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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Re: Teenagers are often priced out of the labor market by the  [#permalink]

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New post 03 Jul 2013, 21:33
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Received a PM to respond to this.

Frankly, there is no correct choice here.

Neither option B nor option C is a valid weakener, if we stay within the context of GMAT.

Option B: It says that unemployment rose when wages remained constant - So what? We are given in the passage that unemployment has risen since 1960. Most probably, there would be years when the wages were constant. So, this option statement cannot weaken the argument since we can already expect this from the given information. Besides, the conclusion is that unemployment will not increase if wages decrease. It is not at all weakened by saying that unemployment rose when wages remained constant.

Option C, for me, is completely off-track. It introduces new information like holiday and warm weather seasons. Probably, the question maker thinks that people can pay higher during warm weather seasons; he thinks that probably there are no ACs out there or that the summers are really cruel. But whatever he thinks, this is not universal knowledge that can be assumed by GMAT test makers for candidates to possess. So, if I see this option in the actual GMAT, I would simply reject it and move forward.

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

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New post 21 Jul 2013, 10:30
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akijuneja 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.
(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.

Please explain.

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There is a common minimum wage for all. Teenagers are not as efficient as adults, so employers are preferring adults over teenagers for the same wage. This is causing unemployment in teenagers. The unemployment rate is rising since 1960. If the congress sets a subminimum wage for teenagers, this unemployment problem will get solved and the unemployment rate will not increase.

Overall, the argument says minimum wage is the only reason for teenage unemployment.

What will weaken the above case:

(A) Since 1960 the teenage unemployment rate has risen when the minimum wage has risen.
Could be true. This doesn't affect my argument. minimum wage is still a problem.
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
Correct. This says even if the minimum wage is not changing, my unemployment rate is still rising. so there must be some other cause and address the wage issue alone will not solve the problem. This weakens my argument.
(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.
Still it rose. My argument is not concerned with how fast or how slow the rate increased. It juts says the rate has increased
(E) The teenage unemployment rate has occasionally declined in the years since 1960.
Could be. But as long as minimum wage is the only cause, my argument is valid. Rise in unemployment from 1960 is not included in the argument as evidence. We cannot weaken the argument by attacking the problem(whether unemployment is rising or not), but the solution(congress' action) and the cause(common minimum wage).
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 14 Apr 2014, 20:09
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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.


Quote:
What i understand from the passage is that 'owners are not willing to pay government-mandated minimum-wage level to teenagers for extra help .[ Attention this is not regular work , author refers to extra work ]. The author concludes that if Congress institutes a subminimum wage, then unemployment rate which has been rising since 1960 will no longer increase.

Here assumption is that by institutionalizing a sub minimum wage for teenagers , unemployment rate will not increase.

We need to weaken this assumption .

Let us pre think on how to do weaken by considering some scenarios
a) Even after Institutionalizing a sub minimum wage for teenagers, if Unemployment rate does not decrease --- weakens
b) There may be another reason for the cause of Unemployment. --- weakens

Let us walk through the options B and C which provide us with similar kind of scenarios

Choice C : Employers often hire extra help during holiday and warm weather seasons. [This choice talks about extra help]

So this weakens the argument that even after Institutionalizing a sub minimum wage for teenagers, as employers hire for extra help only during holiday season, this doesn't reduce unemployment.

Choice B : Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
This argument is already given in the question that " teenage unemployment rate which has been rising since 1960" and the cause of this effect was wage was higher (remained constant)
I would have rather choosen B , if the statement given was as following

"Since 1960 the teenage unemployment rate has risen even after Institutionalizing a sub minimum wage for teenagers" .
(or)
In case of choice B should we assume that government will be increasing the minimum wage every year, and inspite of not increasing the minimum wage , still there is unemployment. Hence reckoned as a Weakaner.

Kindly help me on this question.
Thanks in advance :)


The argument tells you this:
Employers don't want to pay minimum-wages for "extra help" obtained from teenagers, say during Christmas when their own workforce is not sufficient.
So teenage unemployment is increasing i.e. % of people who want jobs and are looking for one but do not have yet.
Conclusion: Institute a sub-minimum wage so that teenage unemployment rate doesn't increase.

The thought probably is that if employers have to pay lower wages for extra help, they will continue to hire teenagers.

(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.
This option tells us that that even when minimum wage is constant, lower number of teenagers are being hired. Say, two years back, the minimum wage was $8/hr and teenage unemployment rate was 10%. Say, today also minimum wage is $8/hr but teenage unemployment rate is now 20%. What does this tell us? It says that there are other factors at play for the increase in unemployment rate. The wages may have nothing to do with rising unemployment rate. This weakens our conclusion and hence is the answer.

(C) Employers often hire extra help during holiday and warm weather seasons.
When the employers hire extra help is immaterial. Point is, they have been hiring lesser extra help. The argument links amount of extra help with minimum wages.
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Re: Teenagers are often priced out of the labor market by the  [#permalink]

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New post 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 government-m  [#permalink]

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

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New post 23 Aug 2016, 21:39
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Please clarify how option B weakens the conclusion.

The passage states lowering the minimum wage to a sub-minimum level will reduce the unemployment rate of the teenagers.
According to option B, the minimum wage is remained constant and that in fact strengthens the conclusion because the unemployment rate has been rising even when the minimum wage is remained constant, hence there's a need to bring it down.

According to Option E, though the unemployment rate has been rising since 1960, there's occasionally some drift following the period. This drift might have been caused due to several reasons which if taken into account can contradict the conclusion stated in the passage.

Experts opinion!!
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 24 Aug 2016, 15:10
SriramK wrote:
Please clarify how option B weakens the conclusion.

The passage states lowering the minimum wage to a sub-minimum level will reduce the unemployment rate of the teenagers.
According to option B, the minimum wage is remained constant and that in fact strengthens the conclusion because the unemployment rate has been rising even when the minimum wage is remained constant, hence there's a need to bring it down.

According to Option E, though the unemployment rate has been rising since 1960, there's occasionally some drift following the period. This drift might have been caused due to several reasons which if taken into account can contradict the conclusion stated in the passage.

Experts opinion!!


The argument presumes that minimum wage is related to teenage unemployment - i.e. higher the minimum wage, higher is the teenage unemployment and vice versa.

Option B states that this presumption may not be valid because although the minimum wage remained constant, the teenage unemployment rate increased (the unemployment rate should have remained constant). This implies that not minimum wage, but some other factor influences the teenage unemployment. Hence reducing the minimum wage for teenagers may not solve the unemployment issue.
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 25 Aug 2016, 21:52
SriramK wrote:
Please clarify how option B weakens the conclusion.

The passage states lowering the minimum wage to a sub-minimum level will reduce the unemployment rate of the teenagers.
According to option B, the minimum wage is remained constant and that in fact strengthens the conclusion because the unemployment rate has been rising even when the minimum wage is remained constant, hence there's a need to bring it down.

According to Option E, though the unemployment rate has been rising since 1960, there's occasionally some drift following the period. This drift might have been caused due to several reasons which if taken into account can contradict the conclusion stated in the passage.

Experts opinion!!


The conclusion is saying that the teenage unemployment rate and wages are related and reducing one will stop the increase in the other.

(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage remained constant.

This option tells you that keeping one steady does not mean the other will stay steady. So other factors are in play. This undermines the conclusion that reducing one will stop the increase in the other.

(E) The teenage unemployment rate has occasionally declined in the years since 1960.

The argument gives you "the teenage unemployment rate, which has been rising since 1960,..."
Option (E) says that the teenage unemployment rate has occasionally declined in the between years. So overall trend would have been a rise but in between sometimes it might have decreased. It doesn't have any impact on the argument. It doesn't link the teenage unemployment rate to minimum wage.
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 27 Aug 2016, 22:59
jeeteshsingh wrote:
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.


Not sure if i got this correctly as B makes no sense to me
Suppose earlier min wage= 500$ and the new subwage is 400$
conclusion is that if 400$ is instituted, unemployment will fall---which imply that obviously 500$= unemployment
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage(500$) remained constant. ---how does it weaken? Its already written that at the min wage 500$= unemployment

(C) Employers often hire extra help during holiday and warm weather seasons. It gives an alternate explanation, saying that its not unemployment but the season in which employers hire...so whatever be the rate, employers will hire only during holidays and warm season.
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 28 Aug 2016, 00:23
RatneshS wrote:
jeeteshsingh wrote:
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.


Not sure if i got this correctly as B makes no sense to me
Suppose earlier min wage= 500$ and the new subwage is 400$
conclusion is that if 400$ is instituted, unemployment will fall---which imply that obviously 500$= unemployment
(B) Since 1960 the teenage unemployment rate has risen even when the minimum wage(500$) remained constant. ---how does it weaken? Its already written that at the min wage 500$= unemployment

(C) Employers often hire extra help during holiday and warm weather seasons. It gives an alternate explanation, saying that its not unemployment but the season in which employers hire...so whatever be the rate, employers will hire only during holidays and warm season.


C is directly attacking the premise here i.e. 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.

Since, we know that they priced out of them due to affording issues, we cannot break this out.

Remember on GMAT, premise is always a source of truth which cannot be attacked.

Now coming back to B.

Conclusion states that reducing the minimum wage would help wipe out this problem. But B says that even when the wage was constant, there was in an increase in unemployment implying something else was happening. Hence, a weakener. May be reducing the minimum wage could not be helpful unless we determine and resolve the unknown cause.
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 28 Sep 2016, 05:34
VeritasPrepKarishma sayantanc2k
Why not A?
because A is on the similar lines of B. In fact, A destroys the conclusion even more by saying that increasing min wage(which is the plan) will increase the unemployment rate ( increase the problem)
so increasing wage is not a good idea as it aggravates the problem rather than solving it.
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Re: Teenagers are often priced out of the labor market by the government-m  [#permalink]

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New post 28 Sep 2016, 06:05
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deepak268 wrote:
VeritasPrepKarishma sayantanc2k
Why not A?
because A is on the similar lines of B. In fact, A destroys the conclusion even more by saying that increasing min wage(which is the plan) will increase the unemployment rate ( increase the problem)
so increasing wage is not a good idea as it aggravates the problem rather than solving it.


You have not read the argument clearly. Highlighted above is the error in your thinking.

The argument is saying lowering the minimum wage(which is the plan) will prevent the increasing unemployment problem. A is actually strengthening the conclusion by saying that increasing the minimum wage will increase the unemployment rate.

We need to find something that says even if the minimum wage is lowered, we will not see any decrease in employment rate. B is as per our pre-thinking. Hence, the correct answer.
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Teenagers are often priced out of the labor market by the government-m

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