V10-12

Official Solution:


Over the past 2 years, the population of the Rugian Republic, which is directly correlated to its labour force, has declined from 117.6 million to 115.4 million, and the country’s GDP has remained steady. A country’s GDP is determined by two factors: the size of its labor force and the productivity of its labor force. Therefore, if the Rugian population trend continues, the country’s GDP will soon decline as well.

Which of the following most strengthens the argument?


A. There have been no technological developments that would increase the productivity of the labor force
B. Automation has allowed some manufacturing companies to increase their output
C. The country economy’s is shifting from goods to services, and services create a higher level of output per worker
D. The level of immigration to the Rugian Republic has increased, and this trend is expected to continue
E. There has been an increase in the number of young people entering the workforce, and older workers are delaying their retirement longer


(A) Correct. The passage states that GDP is determine by size of the labor force and productivity of the labor force. The passage states that the size of the labor force has decreased. If productivity remained the same because there were no technological advances, then GDP will decline.

(B) This answer choice suggests that productivity has increased; this could offset the decrease in the labor force.

(C) This answer choice suggests that productivity will increase; this could offset the decrease in the labor force.

(D) If level of legal immigration to the Rugian Republic keeps increasing, then the declining population trend should reverse, and GDP should go up as the labor force increases.

(E) This answer choices suggests that the size of the labor force will increase, which may offset the population decline.


Answer: A