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# The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 12:15
Quote:
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
(E) help-wanted advertisements increased between 1881 and 1886

This is a reasoning question.
Passage says that even though the rate has reduced, it cant be concluded that the number of unemployed people have gone done.
Pre-thinking:
Unemployment rate = $$\frac{No. of unemployed}{total no. of ppl}$$
Therefore if the number of people increases with the no. of unemployed being same, the rate will reduce.
for eg.
in 1881,
rate = 8 = $$\frac{8 (No. of unemployed)}{100(total no. of ppl)}$$
in 1886,
rate =$$\frac{8 (No. of unemployed)}{200(total no. of ppl)}$$
= 4.
Hence even if No. of nemployed is unchanged, rate is reduced.

Option B correctly represents our prethinking.
Hence answer is Option B
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 12:33
This is the assumption argument, and we need to look for an assumption that explain the decrease of unemployment rate couldn't help explaining the decrease of unemployed people.
---->Gap: basing on the unemployment rate to conclude the unemployed people, so we should find a new and relevant info to close this gap.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
---->No affect answer.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886. ---->The total available workforce includes those with and without employment won't change, unless new people coming.--->No affect answer.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881.--->No affect answer, as comparing to other states doesn't explain anything.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers.---->This is what we have left after POE.

(E) help-wanted advertisements increased between 1881 and 1886.----->the increase of advertisement couldn't help closing the gap.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 13:10
1
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

The percentage of unemployment rate in 1886 is lower than that of 1881. From this we cannot conclude that the absolute number of unemployed was less in 1886 than that of 1881. The reason for this is the population comprising of both employed and unemployed could very well increase substantially over a period of 5-6 years and the absolute number of unemployed could be more even though the percentage is less.
Example: Year-1881: Population-100: unemployment rate-8%: #unemployed-8
Year-1886: Population-200: unemployment rate-7%: #unemployed-14
So, even though rate decreased, absolute value increased.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 --> average time of a employee staying in one job dropped doesn't mean the employee got unemployed. It simply means that the employee keeps switching jobs at a faster rate than earlier. This option doesn't give us any idea whether the employment got increased or decreased in any manner. Incorrect.
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 --> This statement states that the population increased and this is very well in lines of earlier thought process. Correct.
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 --> Statement is talking about Prelandia and not about mid-western industrial states. Out of Scope. Incorrect.
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers --> Job type got changed and leading to displacement doesn't provide us with any data about increase or decrease in unemployment. Infact displacement will just lead to a person working from one job to another. Incorrect.
(E) help-wanted advertisements increased between 1881 and 1886 --> increase in advertisements doesn't mean that people actually applied for the employment and got one. Even if it has to be true, then another assumption of population remaining constant is required. Incorrect.

Answer Choice: B
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 13:52
Quote:
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
(E) help-wanted advertisements increased between 1881 and 1886

This one is easy peasy
If the % of unemployment dropped then it does not imply that the no. of people has decreased
e.g in 1881 total no. of such people was 8 from total of 10 -> 8%
in 1886 total no. of such people increased to 10 from total of 143 -> 7%
Clearly the no. has increased however the % has decreased, therefore Option B is the clear winner.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886- irrelevant in determining the no. of people
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 - Bingo!
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 - We are not concerned about SOME, also we do not know what is the relation between those some and Perlandia
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers- that requires many extra layers of assumptions before arriving at conclusion, out of focus
(E) help-wanted advertisements increased between 1881 and 1886- $$out of focus$$
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 14:09
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
(E) help-wanted advertisements increased between 1881 and 1886

This is a GMAT question which may be understood even before you see the possible answers. And this is a nice feeling.
We should not be confused by percents, because the total available workforce may increase. It's intuitive and obvious thought.

So the right answer is B

Have a nice GMAT weekend!
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 15:55
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 —> not true ,this actually opposite

(B) The total available work force, including those with and without employment, increased between 1881 and 1886 —>Nope!

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881—> looks good

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers—> opposite of what we want
(E) help-wanted advertisements increased between 1881 and 1886–> not relevant

Answer C

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 19:04
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

In first sentence we have information in percentages that the percentage has reduced. And then it is saying even if the percentage has decreased the number might have not reduced.
This paradox can only be solved by giving info about actual numbers.

B is the only option which is talking about it.
Correct option: B

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The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 19:18
1
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
If this is true, then the number of unemployed people in 1886 Prelandia would most likely to increase. However, this information does not help to explain why we cannot confidently conclude that the number of unemployed people in 1886 Prelandia was either lower or higher than it had been in 1881. It also fails to explain the lower unemployment rate in 1886 Prelandia.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
CORRECT ANSWER. This fact most helps to explain why the number of unemployed people in 1886 Prelandia was not necessarily lower than it had been in 1881 despite lower unemployment rate in 1886 Prelandia. Consider two following cases:
#01- The total available work force increased from 70,000 in 1881 to 100,000 in 1886. Even if the unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886, the number of unemployed people in 1886 Prelandia (= 7,000) would still be higher to it had been in 1881 (= 5,600).
#02- The total available work force increased from 70,000 in 1881 to 77,000 in 1886. If the unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886, then the number of unemployed people in 1886 Prelandia (= 5,390) would be indeed lower to it had been in 1881 (= 5,600).

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
This information is not useful to explain why we cannot confidently conclude that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881. If this choice is true, much higher unemployment rate in other mid-western states and lower unemployment rate in Prelandia may indicate that Prelandia economy actually did very well from 1881 to 1886. We, therefore, can confidently expect much lower number of unemployed people in 1886 Prelandia than it had been in 1881.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
This information doesn't help much to explain why we cannot confidently conclude that the number of unemployed in 1886 Prelandia was either lower or higher than it had been in 1881. It also fails to explain the lower unemployment rate in 1886 Prelandia. If more than hundreds of thousands of high-paying industrial jobs were replaced by low-wage service jobs, then it is clear sign that Prelandia economy fell badly from 1881 to 1886 and, inevitably, the Prelandia's unemployment numbers in 1886 would most likely to rise.

(E) help-wanted advertisements increased between 1881 and 1886
This information doesn't help to explain why we cannot confidently conclude that the number of unemployed in 1886 Prelandia was lower than it had been in 1881. The increased number of help-wanted ads from 1881 to 1886 obviously indicates more employment opportunities during that period and thus, it makes sense that the number of unemployed people in 1886 Prelandia would definitely go lower than it had been in 1881.

Answer is (B)
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 20:39
1
Unemployment rate fell from 8% to 7%. however, we cannot conclude that more people were unemployed(not working) than were employed. answer choice below should show how the number of unemployed people in 1886 >= number of unemployed people in 1881..

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
Average time one spent on one Job has dropped. It could be mean people are switching more often or it could mean they may be working long hours before and now reduced the no of hours. it could also mean people stopped working in between. however, it does not conclusively suggest reasoning to impact the conclusion.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
this option suggests total available workforce, meaning the number of people available to work (including employed and unemployed ) increased. Let's say available workforce was 100 in 1881, and unemployment rate 8% i.e 8 people were unemployed. and total available workforce in 1886 was 300. 7% of 200 = 14 . this proves why we cannot conclude above. keep the answer

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
comparison with other states will not help compare the unemployment discussion in the two years of current state.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
many high paying jobs were replaced by low-wage service jobs. this resulted in displacement of many workers. displacement could mean removed from the jobs or relocated/moved from the current job. this also suggests if some people lost jobs , some gained jobs. it does not conclusively impact the conclusion

(E) help-wanted advertisements increased between 1881 and 1886
many jobs are available. availability of job does not indicate impact to people being employed or not employed. many jobs could not be fulfilled due to skills not matching and unemployment rate would still be high.

B is the sufficient answer
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 20:40
The answer is (B) The total available work force, including those with and without employment, increased between 1881 and 1886

Because if the work force were to increase, the total base from which the unemployment % is taken (unemployed / total base x 100%) will also increase. This means the actual number of unemployed may be higher compared to before even if the percentage had decreased.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:01
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 ; not correct
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 ; correct
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 ; irrevelant
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
(E) help-wanted advertisements increased between 1881 and 1886

IMO B
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:15
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

The percentage is lower but the number wouldn't be lower if the total number had increased.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
Average time does not have a bearing on the unemployment rate.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
We cannot say for sure that the number of unemployed was lower since the total available workforce has increased

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
Irrelevant

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
The argument is about unemployment. Incorrect.

(E) help-wanted advertisements increased between 1881 and 1886
Correct. Implies more jobs are available.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:31
Involves numerical understanding as percent decreases but we cannot conclude the absolute number decreases.

Prethink
=======
If total population increases then the decrease in percent will also give rise to the increase in number

Eg 8% of 100 = 8
7% of 200 = 14

On the basis of prethinking we will do POE.

A,c - out of scope, cannot resolve the situation how the percent decrease is responsible for higher number of increase.

B - contender, on the line of prethinking.

D,E - none of them hit the nerve and was able to resolve the percent decrease and the increase in the number.

Hence, B is the Answer.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:34
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Very important to note that the RATE of unemployment has fallen from 8% in 1881 to 7% in 1886. This rate is dependent on total number of unemployed people and total available workforce. We need to find an option that justify that even if the rate was lower, we cannot conclude that the number of unemployed people were less in 1886 than those of 1881.

Lets take options -

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
This is incorrect.Even if this is true, it does not mention why we cannot assume that then number of unemployed people were less in 1886 than those of 1881 despite the unemployment percentage was lower.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
This is correct. If the total available workforce with and without employment increased between 1881 and 1886, we can firmly conclude that number of unemployed people were not lower in 1886 than that of 1881.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
This is incorrect. We can not conclude anything from the given statement.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
This is incorrect. Even if this is true, it does not mention why we cannot assume that then number of unemployed people were less in 1886 than those of 1881 despite the unemployment percentage was lower.

(E) help-wanted advertisements increased between 1881 and 1886
This is incorrect.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:44
(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
//Irrelevant.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
//Okay so now the total number has changed so actual number of unemployment may be higher or same despite the percentage of work force has dropped

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
(E) help-wanted advertisements increased between 1881 and 1886
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:51
1
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Understanding of Argument :
There was 8% unemployment rate in 1881 which became 7% in 1886
So it dropped as percentage by 1%.
Argument concludes that still the number of unemployed are not lower than numbers of unemployed in 1881

Our Goal is to strengthen this conclusion with as reasoning- it is strengthen type of question so some new information will help to fill the gap.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
-Average time to stay in one job does not help to strengthen conclusion since argument is talking about unemployment rate and not average time that employee stays in the job. Till the time they are employed it does not affect the argument .
Average time to stay in job is IRRELEVANT. So eliminate A

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
- Correct. This helps to strengthen our conclusion that even after 1% drop in unemployment rate in 1886 ,why actual number of unemployed are not less than 1881 in 1886. If for eg there was total work force of 100 in 1881 and unemployment rate was 8% so 8 ppl were unemployed. Statement B says that total available work force has increased between 1881 and 1886 so lets say it became 200 in 1886 and unemployment rate is 7%. So now actual number of unemployed are 14. So number is greater than 1881 even after drop in unemployment rate.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
- This option is talking about "some states" having higher unemployment rate. But based on this information we cannot conclude anything strongly in support of conclusion that why number of unemployed were actually not lower in 1881.Overall unemployment rate was lower in 1886 so may be some other states had much lower unemployment rate in 1886 than it had been in 1881 and so overall average was lower in 1886 .
So eliminate C

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
- There was change in industrial jobs which resulted in displacement (change in position) of hundreds of workers but it does not say they became unemployed. Probably they were moved from high paying jobs but were still employed so it does not explain why the actual unemployment was not lower in 1881. So we Eliminate D

(E) help-wanted advertisements increased between 1881 and 1886
- If help -wanted ad increased between 1881 to 1886 ,that indicates actually more jobs availability .If more jobs requirements were created in 1886 how can the number of unemployed be lower than 1881. This is reverse statement and weakens the conclusion. so Eliminate E

ANS IS CHOICE B

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 22:15
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

we have to find an argument which enforces that no. of people unemployed decreased.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886

Doesnot say if there is a gap between jobs which is counting people as unemployed.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886

contradicts what we are looking for

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881

random data. not useful

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers

implies number of unemployed increased. contradicts what we are looking for.

(E) help-wanted advertisements increased between 1881 and 1886

Only option left. It also explains that no. of people unemployed is lesser as help wanted signs indicate a tight labor market.

E)
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 22:58
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Although the percentage of unemployment decreased between 1881 and 1886, the absolute value of unemployed people depends on the absolute total value, which might either increase or decrease during that time. Therefore, one of the reasons that can make the number of the unemployed in 1881 not higher than that in 1886 is that the absolute value of

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
—> irrelevant as the employed time does not affect the employed rate.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
—> correct because when the total available workforce increase and the ratio of unemployed/(unemployed + employed) or the unemployed rate decreases, the number of unemployed people can still be greater in 1881 than that in 1886 as long as the increase in total workforce is greater than the increase in the unemployed.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881.
—> out of scope. The situation in mid-western industrial states implies nothing about that in the text.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers.
—> well, this displacement may result in the moving of workers from higher to lower positions, so it doesn’t imply increasing in unemployed rate.

(E) help-wanted advertisements increased between 1881 and 1886
—> irrelevant. Advertisements have nothing to do with the problem here.

So, I think the answer is B

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 23:31
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886. Incorrect. How long employees will stay in their job is irrelevant.
(B) The total available work force, including those with and without employment, increased between 1881 and 1886. Incorrect. If this was indeed the case, then this would strengthen the fact that unemployment rate fell.
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881. Incorrect. Duration of unemployment is not relevant.
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers. Correct, if this is true, then atleast some highly paid industrial workers are now unemployed in 1886
(E) help-wanted advertisements increased between 1881 and 1886. Incorrect. Can't tell from the increase in advertisements.
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The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 00:21
1
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 - Duration doesn't tell us anything about what happens after the drop - the employess could had found another jor or stayed unemployed, out

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
This is best, among others, explanation: if a base increases, drop in rate might not offset marginal increase of one parts of the base. However, it still has weak points: we do not know how much shares of the unemployment base changed

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
Doesn't provide explanation as we are interested in situation throghout the country, out

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
Irrelevant because it cannot explain why rate fell but absolute number might not, out

(E) help-wanted advertisements increased between 1881 and 1886
Advertisements show increase in supply of job, but tell nothing about # of unemployed, out

Answer is B
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe   [#permalink] 20 Jul 2019, 00:21

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# The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe

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