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Re: Tom: The unemployment rate has dropped below five percent [#permalink]
rohan2345 wrote:
Tom: The unemployment rate has dropped below five percent, and that is good news for America. A lower unemployment rate is better for almost everyone.

Shelly: Actually, a low unemployment rate is good for most workers but not for everyone. Workers are certainly happy to have jobs, but many businesses are negatively affected by a low unemployment rate because they have fewer applicants for jobs, and to expand their workforce, they have to hire workers they would not usually hire. The wealthiest Americans also privately complain about the inability to get good gardeners, house cleaners, and nannies when most Americans are already employed. So a low unemployment rate is not, in fact, good for America.

Which of the following, if true, would most weaken the argument that a low unemployment rate is bad for business?

(A) Businesses must pay skilled or experienced workers higher salaries when the unemployment rate is low.
(B) The states don’t have to pay unemployment compensation to as many workers when unemployment is low.
(C) Higher unemployment generally means higher enrollment levels in college and graduate school.
(D) Inflation can increase with low unemployment, making capital more expensive for any business seeking to expand.
(E) Low unemployment rates generally mean that Americans have more money to spend on the goods and services created by American businesses.


A - bad for business
B - good for states - irrelvant for business
C - out of scope
D - bad for busines

E - good for business
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Re: Tom: The unemployment rate has dropped below five percent [#permalink]
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rohan2345 wrote:
Tom: The unemployment rate has dropped below five percent, and that is good news for America. A lower unemployment rate is better for almost everyone.

Shelly: Actually, a low unemployment rate is good for most workers but not for everyone. Workers are certainly happy to have jobs, but many businesses are negatively affected by a low unemployment rate because they have fewer applicants for jobs, and to expand their workforce, they have to hire workers they would not usually hire. The wealthiest Americans also privately complain about the inability to get good gardeners, house cleaners, and nannies when most Americans are already employed. So a low unemployment rate is not, in fact, good for America.

Which of the following, if true, would most weaken the argument that a low unemployment rate is bad for business?

(A) Businesses must pay skilled or experienced workers higher salaries when the unemployment rate is low.
(B) The states don’t have to pay unemployment compensation to as many workers when unemployment is low.
(C) Higher unemployment generally means higher enrollment levels in college and graduate school.
(D) Inflation can increase with low unemployment, making capital more expensive for any business seeking to expand.
(E) Low unemployment rates generally mean that Americans have more money to spend on the goods and services created by American businesses.


OFFICIAL EXPLANATION



E.

This critical-reasoning question requires you to weaken Shelly’s argument that a low unemployment rate is bad for business. Choices (A) and (D) give two examples of how low unemployment hurts businesses, so they actually strengthen the argument instead of weaken it. Eliminate them along with Choices (B) and (C), because these statements are basically off topic; they deal with government and universities, not businesses. Choice (E) is the correct answer, because employed American workers’ buying more American products provides a significant advantage for businesses.
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Re: Tom: The unemployment rate has dropped below five percent [#permalink]
We have to weaken the fact that low unemployment rate is bad for America, i.e., we have to strengthen the fact that low unemployment rate is good for America. In other words, we have to weaken what Shelly said

Pre thinking: anything that tells us that low unemployment is good for America is our answer

A. Strengthens Shelly's stand
B. Helpful for the states but doesn't tell us how is this helpful for the business
C. Out of Scope
D. Out of scope since no information linking to workforce and people present. Strengthens Shelly's stand as it says that businesses don't have the capital (money) to expand which is bad for any business.
E. Correct Choice. This choice tells that low unemployment -> more money people have to spend -> they can afford the services provided by American Businesses -> Businesses provide service and get money in return and grow. Hence, low unemployment is good for business
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Re: Tom: The unemployment rate has dropped below five percent [#permalink]
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