The recent decline in the employment rate was spurred by : GMAT Critical Reasoning (CR)
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# The recent decline in the employment rate was spurred by

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Director
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The recent decline in the employment rate was spurred by [#permalink]

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26 Nov 2006, 19:31
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The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.

Which of the following, if true, casts the most doubt on the validity of the argument above?

A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.
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26 Nov 2006, 19:42
Swagatalakshmi wrote:
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.

Which of the following, if true, casts the most doubt on the validity of the argument above?

A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.

B
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26 Nov 2006, 22:48
Not sure, but go C.
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26 Nov 2006, 23:22
C....
Director
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26 Nov 2006, 23:29
I too choose C...

Thus it is important to concentrate that it is employment rate which influences the economic growth....
Director
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26 Nov 2006, 23:30
tennis_ball wrote:
Not sure, but go C.

Obviously, OA=C
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27 Nov 2006, 00:47
Swagatalakshmi wrote:
tennis_ball wrote:
Not sure, but go C.

Obviously, OA=C

thanks.
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27 Nov 2006, 14:06
Swagatalakshmi wrote:
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.

Which of the following, if true, casts the most doubt on the validity of the argument above?

A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.

Late but I also chose C.

Your CR questions are smaller,concise and good for analysis. Where do you get from?
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27 Nov 2006, 19:36
Swagatalakshmi wrote:
The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.

Which of the following, if true, casts the most doubt on the validity of the argument above?

A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.

Late but I also chose C.

Your CR questions are smaller,concise and good for analysis. Where do you get from?

LOL..you sound as if the questions are sweet, pretty, and good to look at..

They beat the hell out of us...

Swagata, please keep posting such questions...last two days has been a painful, but terrific CR ride..
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Re: CR: Capital Reserve   [#permalink] 27 Nov 2006, 19:36
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