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The recent decline in the employment rate was spurred by

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

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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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Re: Employment Rate [#permalink]

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New post 06 Dec 2009, 05:48
I am confused between B and C. I will prefer to choose C, since it mentions that that labor costs could also adversely impact employment rate.
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Re: Employment Rate [#permalink]

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New post 06 Dec 2009, 11:23
IMO, Answer is C.

C provides another reason why employment rates could be low in the future and thus weakens the argument.
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Re: Employment Rate [#permalink]

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New post 07 Dec 2009, 08:29
OA is C.
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Re: Employment Rate [#permalink]

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New post 03 Feb 2010, 19:51
What is wrong with B?
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Re: Employment Rate [#permalink]

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New post 03 Feb 2010, 20:30
C from me too.

Conclusion : the employment rate will not decline in the future.
Premise (among many) : major industries increase their capital reserves

So, there is a gap. Author is assuming that all that matters is the capital reserve. If we strike at that assumption that there may be other reasons as well affecting the Employement Rate, the conclusion will be weakened.

C does precisely that.

Now, B : Some major industries had appreciable capital reserves.
If *some* major industries had appreciable capital reserve how will it impact ? it does not impact on the assumption.
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Re: Employment Rate [#permalink]

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New post 03 Feb 2010, 20:41
Got you, thanks!!!
vibhaj wrote:
C from me too.

Conclusion : the employment rate will not decline in the future.
Premise (among many) : major industries increase their capital reserves

So, there is a gap. Author is assuming that all that matters is the capital reserve. If we strike at that assumption that there may be other reasons as well affecting the Employement Rate, the conclusion will be weakened.

C does precisely that.

Now, B : Some major industries had appreciable capital reserves.
If *some* major industries had appreciable capital reserve how will it impact ? it does not impact on the assumption.


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Re: Employment Rate   [#permalink] 03 Feb 2010, 20:41
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