Bunuel wrote:
To avoid the appearance of conflicts of interest, the board of a major U.S. stock exchange is considering a new policy that would ban former top executives of the exchange from taking positions at publicly traded companies for a period of two years after leaving the stock exchange. Critics of the plan say the policy is unfair because it would likely prevent former top executives of the exchange from earning a decent living.
Which of the following statements, if true, would most strengthen the prediction made by the critics of the proposed company policy?
(A)The labor union that represents most of the stock exchange’s employees has made public statements that threaten a strike if the policy is adopted.
(B) Former employees of the exchange most often work for publicly traded companies after leaving the exchange.
(C) Low-level managers at the exchange have an average tenure of 13 years, one of the longest in the industry.
(D) Low-level managers at the exchange most often leave their jobs for positions with the state or federal government.
(E) Former top executives of the exchange have a particular set of skills such that they are usually only able to find work with publicly traded companies.
KAPLAN OFFICIAL EXPLANATION
STEP 1: IDENTIFY THE QUESTION TYPEYou’re looking to strengthen the argument here—specifically the prediction made by the critics of a policy. So as you examine the stimulus, the critics’ argument will be most helpful.
STEP 2: UNTANGLE THE STIMULUSA new policy would ban former top executives of a major stock exchange from working for publicly traded companies for two years after leaving the exchange. Critics of the policy contend that the policy will prevent the top executives from earning a decent living.
STEP 3: PREDICT THE ANSWERSince you’re strengthening the prediction, look for an answer choice that makes it more likely that the former top execs can’t earn a decent living. A good prediction is something that explains why top executives must work at publicly traded companies in order to make a decent living
STEP 4: EVALUATE THE CHOICESChoose (E), which states that former top executives of the firm can usually only find work at publicly traded companies because of their particular skill set. If this were true, then a two-year ban on working for publicly traded companies would mean no work for most former top executives (and by extension, no decent living), thus strengthening the prediction stated by critics of the plan. Whether or not the union strikes has no bearing on the effect the new policy would have on the former executives if enacted; thus, (A) is incorrect. (B) simply states that most former employees of the exchange work for publicly traded companies; it does not tell you that they could not make a decent living elsewhere if need be. (C) and (D) refer to low-level managers, and the prediction only discusses top executives; thus, both choices are irrelevant and incorrect.