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QOTD: In two months, the legal minimum wage in the country

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QOTD: In two months, the legal minimum wage in the country [#permalink]

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Verbal Question of The Day: Day 175: Critical Reasoning


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In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars (KD5.00) per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation

(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees.

(D) The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage.

(E) The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.


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Re: QOTD: In two months, the legal minimum wage in the country [#permalink]

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New post 11 Dec 2017, 09:18
In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars (KD5.00) per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year -- not relevant

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation -- specific issue - not enough info. --firms may continue to pay less

(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees. -- everyone's pay will be impacted

(D) The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage. --- specific information -- does not impact argument

(E) The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job. -- specific issue -- does not impact argument
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Re: QOTD: In two months, the legal minimum wage in the country [#permalink]

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New post 11 Dec 2017, 09:28
In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars (KD5.00) per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year -Time frame of employment is out of scope

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation -Some firms will always exist. Besides, this will strengthen the argument because if the firms have violated the law there is no reason as to why these firms won't violate the law again

(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees. -Correct. If the pay of existing skilled workers will increase greater than KD5.5 then the inflation might go up

(D) The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage. -Sectors in which growth has been maximum are out of scope

(E) The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job. -Clearly out of scope
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Re: QOTD: In two months, the legal minimum wage in the country [#permalink]

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New post 11 Dec 2017, 10:32
i am not getting this question can someone explain this to me....
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Re: QOTD: In two months, the legal minimum wage in the country [#permalink]

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New post 12 Dec 2017, 03:40
+1 for C. My take :

This is a weaken type question.

Premise :

1) In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic dollars (KD5.00) per hour to KD5.50 per hour.
2) Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up.

Conclusion :

The impact will be negligible as the fraction of employees with wage below minimum is small.

Pre-thought :

Since there is a linkage between net increase in wage and inflation, we need to find a case wherein the fraction will increase. What if the increase is because of greater number of non- permanent employees ? The argument falls apart in such a case.

Only option C fits the bill. Hence the answer is C. All other choices are irrelevant or out of scope.
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Re: QOTD: In two months, the legal minimum wage in the country [#permalink]

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New post 15 Dec 2017, 09:05
sananoor wrote:
i am not getting this question can someone explain this to me....


Try to help, though I'm not an expert.

Conclusion : the increase in wage will be USELESS, since it just boosts the inflation while the real workers that get the rise just "very small proportion".

We need to WEAKEN, means that we must find the answer that say that IT IS NOT USELESS or maybe the proportion of the workers who gets the benefits is bigger than expected.

Which of the following, if true, most seriously weakens the argument?

(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year - Irrelevant

(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation - These firms will always violate the regulation.

(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees. -
Before : trainees were given 4.9/hour and the trained workers were given 5.5/hour.
After : trainees will be given 5.4/hour and the trained workers will be given 6/hour.
As you may see, this phenomenon creates a ripple effect; thus the real proportion of the workers who get the benefit will increase.


(D) The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage. - Irrelevant


(E) The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job. - Irrelevant

Wdyt?
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Re: QOTD: In two months, the legal minimum wage in the country [#permalink]

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Kirlandia makes me think of kir royales. Ten phantom bonus points for anybody who knows how to make a kir royale without googling it.

And if you prefer your explanations in video form, check out this YouTube CR webinar. And if you prefer written explanations, let's start with the conclusion: according to the author, the impact of the minimum wage increase (from KD5.00 to KD5.50) on wages in Kirlandia will probably be negligible. In other words, overall, wages in Kirlandia will not change much as a result of the increase.

Why not? Well, only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour. So when the minimum wage is increased, only that small proportion will be immediately affected and see an increase in their wages. If only that small proportion sees an increase in their wages, then it seems reasonable to conclude that the overall impact will be small.

Which of the answer choices most seriously weakens this train of thought?

Quote:
(A) Most people in Kirlandia who are currently earning the minimum wage have been employed at their current jobs for less than a year

The author argues that the impact will be minimal since the change will only directly affect a small proportion of Kirlandic workers. This argument is the same regardless of how long those workers have been employed at their current jobs. Choice (A) does not impact the author's argument and can be eliminated.

Quote:
(B) Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of kirlandic employment regulation

We are specifically told that "only a very small proportion of all Kirlandic workers are currently receiving less than KD5.50 per hour." If SOME firms are paying considerably less than KD5.00, then the change might have a greater effect than the author anticipates. Then again, if those firms were violating the employment regulations before, why should we expect them to comply when the new law is passed? Choice (B) would only affect the argument if those firms were suddenly compelled to comply with the minimum wage laws. Even if they did, the impact should not be that great, since this situation only applies to SOME of an already SMALL proportion of workers. (B) doesn't look great, but hang on to it if you aren't convinced.

Quote:
(C) Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their pay levels above the pay level of trainees.

We know that the change will direct affect only a small proportion of workers. But what if the change indirectly affects other people BESIDES those included in the small proportion? The wages of those in the small proportion (i.e. trainees) will go up. But now the trainees might be making just as much as the TRAINED workers. In order to reward the trained workers, many businesses would have to raise the wages of their trained workers (to ensure that trained workers are paid more than trainees).

If this is true, then the change will affect not only the small proportion but also any trained workers whose pay levels must be kept above those of the trainees. Choice (C) clearly expands the impact of the change beyond the negligible outcome described by the author. Thus, unlike choice (B), choice (C) directly hurts the author's argument without any additional leaps or assumptions. Hang on to this one.

Quote:
(D) The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers earn wages that tend to be much higher than the minimum wage.

Again, the author reasons that the impact will be minimal since the change will only increase the wages of a small proportion of workers. If sectors where workers earn wages that tend to be much HIGHER than the minimum are experiencing the most growth, this is further evidence that the minimum wage law will be largely inconsequential. If, on the other hand, we were told that the greatest growth has been in sectors where workers earn the minimum wage, then perhaps choice (D) would work against the author's argument (by suggesting that the NUMBER of employees earning the minimum wage is steadily growing, thus expanding the impact of the new law). As written, choice (D) does not impact the author's argument and can be eliminated.

Quote:
(E) The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job

The author (who's perhaps a heartless sociopath?) is not concerned with whether the current minimum wage (or the new minimum wage, for that matter) is sufficient to support a family. In fact, choice (E) might even suggest that some of the workers included in the small proportion currently have to work multiple jobs and/or overtime in order to support their families. Once the minimum wage is increased, those workers could earn the same total amount working a smaller number of hours. If that were the case, this would be further evidence that inflation is unlikely (since the total amount earned by those workers would not change much, if at all). Regardless, choice (E) gives us no reason to expect that the new law will impact anyone aside from the small proportion of workers currently earning less than KD5.50. Thus, choice (E) does not affect the author's argument and can be eliminated.

Choice (C) directly weakens the author's reasoning, so it is the best answer.
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Re: QOTD: In two months, the legal minimum wage in the country   [#permalink] 17 Dec 2017, 23:16
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