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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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20 Jul 2019, 00:31
1
Premise: Unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886
Conclusion: 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
Question: Why???

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
In this situation, employees would not be considered unemployed if they change jobs

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
8% Of say 100 = 8 are unemployed
available workforce increased to 1000
7% of 1000 = 70

Thus it cannot be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
When talking about a country as a whole, there would definitely be areas with different rates, but would average 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
High paying or low wage service jobs would not make a difference in unemployment numbers, displacement if it happened around the same country , would not make a difference,

help wanted advertisements would not necessarily mean there would be no unemployment... skill gap could be an issue
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 01:18
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 ________.

Note: Rate fell from 8% to 7%. But, we are talking about "number of unemployed people".

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886.
Completely irrelevant to the question....................Can be eliminated.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
Bases on the amount by which work-force increased, number of unemployed people can be more or less than before....................Correct choice.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
The argument talks about other states. So, Irrelevant for the question.....................Can be eliminated.

(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.
Completely irrelevant to the question......................Can be eliminated.

Does not make sense & bit irrelevant......................Can be eliminated.

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

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20 Jul 2019, 01:33
1
this question is based on common misconception
---Decreasing percentage leads to decreasing number

suppose total worforce, including those with and without employment,in 1881 = 100
unemployment rate = 8% of 100 ---8 persons are unemployed

total worforce, including those with and without employment,in 1886 = 1000
unemployment rate = 7% of 1000---70 persons are unemployed

so decrease in percentage doesn't lead to a decreasing number
that's why we cant conclude safely from the given statistics

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
we are concerned about providing the reason why we cant conclude from the decrease in the unemployment rate that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 ..... how much time employee spend in the job doesn't provide reason SO (OUT)

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
yes this is the correct answer for the reason discussed above (CORRECT)

(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 unemployment of other states .....comparing unemployment rate from other state doesn't provide a reason why the given statistics is not the true indicator that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 (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
high paying jobs are replaced by low paying jobs this doesn't lead to loss of job maybe people are still emplyoed in low paying job....this answer choice is irrelevant to our concern it doesnt provide reason why we cant conclude from given statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 (IRRELEVANT)

this answer choice doesnt provide reason why the given statistics is not the true indicator that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 (OUT)
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 01:34
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 ____.

(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

Given unemployment rate 8% in 1881, 7% in 1886. According to statistics, unemployment decreased but this does not need to be true because ____
This paradox situation (question type is not paradox) can be explained only if total number of work force increased. Think of 1000 workers in 1881, 80 jobless. 10,000 workers in 1886 and 700 jobless. Percent of unemployed decreased but number of jobless increased.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 01:42
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. There is no co-relation given between time in a job with unemployment rate.

(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 --> Incorrect. The unemployment rate in certain regions may have been higher in 1986 but in all other parts of the country it may have been drasticaly lower in 1986. Hence this information is inconclusive.

(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 --> Incorrect. Lack of exact statistics does not help make this information useful. It is very vague to say hundreds of thousands of workers when we do not know the total population of the country.

(E) help-wanted advertisements increased between 1881 and 1886 --> Incorrect. No co-relation between advertisements and unemployment directly can be concluded here to make this information useful.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 01:52
A. The average time that employees stay in any one job is irrelevant

B. Let total population of Prelandia in 1881=1000
Unemployed in 1881= 80

According to B option total population (E+UE) in 1886 increased.
In 1886, If population =1200, then unemployed workers= 84>80
In 1886, If population = 1100, then unemployed workers= 77<80

Hence it justifies our conclusion.

C. Option C is talking about some mid-western industrial states. Out of context

D. D is irrelevant. We are not interested jn average salary. We are only interested in number of unemployed people.

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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20 Jul 2019, 02:05
In the first sentence, it was stated that unemployment rate dropped from 8% in 1881 to 7% in 1886. The drop in unemployment rate can be due to the fact that more jobs became available after 1881 such that by 1886, more people who are qualified and available to work can be engaged leading to the drop. In one vein, we can say that the total people available to work in 1881 remained the same till in 1886, in which case a drop in unemployment rate will result in reduction of the total number of people qualified and willing to work that are unemployed. However, should the number of people who are qualified and willing to work increase after 1881 to 1886, we can witness the availability of more jobs in 1886 than were available in 1881 but a drop in the rate of unemployment from 8% to 7% will not necessarily mean that the number of people who are unemployed in 1886 are less compared with 1881. So, yes there are more jobs in 1886, but there are equally more people without employment. When the total of those employed is calculated as a fraction of the total available for employment, we can get a rate which suggests that more people available for employment find themselves in employment in 1886 compared to 1881, but we cannot make a statement that there are lesser unemployed in 1886 compared to 1881.

B is the answer. It clearly shows that total available workforce, including unemployed and employed, has increased from 1881 to 1886. This can explain why although we lesser rate in 1886 compared to 1881, we cannot conclude that total number unemployed in 1886 is less than in 1881.

All other options do not provide adequate information which suggests that unemployed workforce could be more in 1886 compared to 1881 although the rate of unemployment has dropped to 7% from 8% respectively in 1886 and 1881.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 03:14
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The premise says that there was a fall in unemployment rate

Unemployment Rate=number of unemployed people/total workforce

If the unemployment rate fell, it could be because the numerator reduced or denominator increased

Now we have to find a reason why the fall in unemployment rate may not have been because the numerator reduced.

The only other option is that denominator increased.

This is exactly what is presented in 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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20 Jul 2019, 03:41
The correct answer is B. If the percentage went down but the number of employed people did not decrease, it is likely that the total employable population increased, essentially increasing the denominator but holding the numerator constant to result in a lower percentage. B conveys this perfectly!
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 04:11
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We need to find the answer choice that strengthens the conclusion.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 - we are not bothered about how long an employee stays with any job. It could well be the case that these people moved to other jobs.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886 - If the number of persons increased between 1881 and 1886, it could well be that the number of unemployed persons went up. For example, say the no. of persons in the workforce during 1881 and 1886 were 80 and 100 respectively. So no. of unemployed persons in 1881 and 1886 would be 64 and 70 respectively. Hence, this option is correct.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 - Even if some states had higher unemployment rate, the unemployment rate of Prelandia as a whole was lower. So, this doesn't help the conclusion.

(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 doesn't state how the no. of unemployed people could have gone up as the people with higher wages could have switched to lower wages (but still they were employed).

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

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20 Jul 2019, 04:39
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-correct, as it accurately states the reason behind the statistics not showing the true picture.
(B) The total available work force, including those with and without employment, increased between 1881 and 1886-out, increasing both employed and unemployed people doesn't provide any conclusive evidence
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881-out, information about other states doesn't shows the condition of prelandia.
(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-out, as statistics show that employment has risen. it doesn't bridge gap.
(E) help-wanted advertisements increased between 1881 and 1886--out, as what kind of help is not stated.

So, the correct answer choice is (A)
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 04:44
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he 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 ________.
Conclusion:

Even when the statistics shows that the employment rate has decreased, it cannot be concluded that total unemployed population has gone down. We need something that will explain this paradox

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886- Incorrect. They may be not staying in one job but might be be shifting jobs hastily. this does not affect the unemployment rate, even if we assume that they leave work completely and stay unemployed, the percentage must have gone up
(B) The total available work force, including those with and without employment, increased between 1881 and 1886- Correct. If the total work force(employed + employed has gone up), then even if the rate has gone down, The number of people can be same or lower. Hence the statistics could be wrong
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881- Out of scope.We are not concerned about other states
(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-Incorrect . If this was the case, it could have been reflected in the percentages above
(E) help-wanted advertisements increased between 1881 and 1886- Irrelevant. Increase in just advertisements doesn't necessarily they have all been posted by unemployed people and their corresponding number has also increased.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 05:33
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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 ________.

Pre-think: So there is a percentage change, but what about the total number? If the total number rises more than the influence of percentage change, that can be the answer on the question. 8%*total number ago > 7%*total number now?

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886. WRONG. Don't have a straight influence on the quantity of people that have a job.
(B) The total available work force, including those with and without employment, increased between 1881 and 1886. RIGHT. That's about the total number of people.
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881. WRONG. Don't influence on the quantity of people that have a job at all.
(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. WRONG. Displacement doesn't mean change in total number.
(E) help-wanted advertisements increased between 1881 and 1886. WRONG. We can't say that it is influenced by raise of total number of people.

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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, 06:42
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.This statement doesn't give any clues as to why the number of unemployed people in 1986 had not
been lower than it had been in 1981.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886.Correct.This indicates towards increment in workforce both of employed and unemployed and hence clearly points out the reason that number of unemployed people was lower than as compared to 1881.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881.Incorrect.This data is of some particular area by which we cannot have a broader view about unemployment.

(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.Incorrect.Even if high paying jobs were replaced by low wage jobs resulting in displacement but this does not indicate creation of unemployment.

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

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20 Jul 2019, 06:58
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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 ________.

Pre-thought
because --- is the reason we have to give for the inference
employment rate decreased from 8 to 7 --> cannot conclude the number of unemployed people in 1886 was lower than 1881

lets say 1000 people are eligible for employment in 1881---> 8*1000 = 80 are unemployed

in 1886 --> 7*(1000+x) =70+7*x ---> where x is the rise in total population of eligible for employment
So we don't know x so we can't infer there is a rise or drop in the unemployed men

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886--Incorrect
the time employee stay in a job is not necessarily the reason as one might get a job in hand and changed

(B) The total available work force, including those with and without employment, increased between 1881 and 1886-Correct
exactly as per our pre though --> total increase then the no.of unemployed may remain same decrease or increase --This is the conclusion of the argument

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881-Incorrect
No comparison is in the context of the argument ,this so comparison cannot be the conclusion of the argument

(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-Incorrect
high pay jobs were replaced by low pay resulting movement of workers with in Prelandia or outside is not mentioned--so more confusion cannot be the reason for conclusion

advertisement for employment increased doesn't mean no.of job increased , one could repeatedly do many
and this doesn't mean unemployed decrease
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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20 Jul 2019, 07:35
Let's look at the "The Unemployment Rate" formula,

Unemployment Rate=(No. of Unemployed Workers)/(No. of Working and Non-working individuals)

Well, Reducing the Unemployment rate depends not only the number of unemployed workers, but also Total labor force.
if Total Labor force increase, it will affect the rate too.

We need to pick the answer which is talking about Total labor force.

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

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
--> Correct. Increasing the total work force give opportunities the unemployed people to get a job.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
--> Incorrect. we know already the rates clearly.

(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.
--> Incorrect. It talks about total workforce partially, not the wholly.

--> Incorrect. No any sense.

Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe   [#permalink] 20 Jul 2019, 07:35

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