In 1860 in the United States, of all employees, only state judges in s

Question

In 1860 in the United States, of all employees, only state judges in some states were forced to retire because of advancing age. Although the 1828 edition of Noah Webster's  American Dictionary  lists the word “retirement” in the sense of ceasing work, it does not suggest any special applicability to older people. Unencumbered by laws requiring that they cease work, older people in the early- and mid-nineteenth-century United States apparently labored until they chose to stop.

Some explain this absence of mandatory retirement by asserting that forced retirement was inappropriate to the economic institutions of that era. Most businesses were not yet large; the few dozen employees in a sawmill or shoe factory were not enough to share the financial burdens of a pension program, while the close, personal relations of employer and employee in such enterprises perhaps made involuntary retirement without a pension (firing older workers) uncomfortable and infrequent.

Others argue that there were pools of labor sufficiently large to invite the development of mandatory retirement, but that such a system was unnecessary because older workers were retiring voluntarily. The labor pools in the textile industries and the railroads at least would qualify, they assert, and had smaller firms (ironworks, for example) wanted to retire their older workers, insurance companies would surely have moved in to combine the smaller firms' labor forces into a pool large enough to support a pension program.

Data from the United States census are useful to test the first explanation but not the second. In 1840, about 70 percent of white men over 65 were gainfully employed; fifty years later, when economic institutions had grown in size dramatically, that percentage was roughly the same. Regarding the second explanation, the census data, whether for 1840 or 1890, are not helpful because they are silent on how many of those not employed were physically incapable of working, how many could not find work, and how many had voluntarily retired. Thus, the conclusion that workers retired voluntarily cannot be proved from the census data, but neither can it be disproved.
   1 
 1. The passage suggests that in order to operate a pension program, it is necessary that

A. the majority of workers retire voluntarily
B. the typical employee work for the same firm for most of his or her life
C. employers be prevented from firing older employees who do not have pensions
D. a large number of employees participate in the pension program
E. insurance companies be employed to combine a business' labor force with others into a pension program pool

2 
 2. The passage asserts that the United States censuses of 1840 and 1890 do  not  provide information on which of the following?

A. The employment status of women over 65
B. The employment status of African Americans over 65
C. The reasons why unemployed white men over 65 were not working
D. The percentage of unemployed white men over 65 who had retired with pensions
E. The size of the firms in which unemployed white men over 65 had most recently worked

3 
 3. According to the passage, the United States census is not useful in testing the second explanation because

A. the census data do not reflect how many white men under 65 were gainfully employed
B. the census data do not reflect significant changes between 1840 and 1890 in the percentage of white men gainfully employed
C. nineteenth-century censuses did not use the word “retirement” in questions posed to respondents
D. the percentage of the population responding to the census was not large enough to provide an accurate sample of retired workers
E. the census does not provide the specific reasons why unemployed white men over 65 were not part of the labor force

4 
 4. The passage suggests that mandatory retirement is more likely to exist when

A. most employees participate in pension programs
B. most employees who are forced to retire can find new jobs
C. most employees over 65 would like to retire
D. a large number of employees retire voluntarily before the mandatory retirement age
E. the relationship between employer and employee is close and personal

Sajjad1994 · Answer

Explanation

1. The passage suggests that in order to operate a pension program, it is necessary that

Explanation

The passage primarily discusses the absence of mandatory retirement in the United States in the mid-19th century and explores possible explanations. The two main explanations presented are:
 
 Forced retirement was inappropriate to the economic institutions of the era, as most businesses were not large enough to support a pension program financially. 
 There were labor pools large enough to support a pension program, but such a system was unnecessary because older workers were retiring voluntarily.

A. The majority of workers retire voluntarily. 
 
 This aligns with the second explanation presented in the passage, suggesting that if a significant number of workers retire voluntarily, a pension program may not need to be enforced. However, the passage does not explicitly state that this is necessary for a pension program to operate.

B. The typical employee works for the same firm for most of his or her life. 
 
 The passage does not make this assertion, and the absence of mandatory retirement is attributed to factors like the size of businesses and the personal relations between employers and employees.

C. Employers be prevented from firing older employees who do not have pensions. 
 
 This option is not explicitly discussed in the passage. The absence of mandatory retirement is explained in terms of economic institutions and the voluntary retirement of older workers.

D. A large number of employees participate in the pension program.  
 
 This option is consistent with the notion that for a pension program to be viable, a large number of employees need to participate. The passage mentions that in smaller businesses, financial burdens prevented the implementation of pension programs.

E. Insurance companies be employed to combine a business' labor force with others into a pension program pool. 
 
 While the passage does mention that insurance companies might have moved in to combine smaller firms' labor forces into a pension program pool, it does not explicitly state that this is a necessary condition for operating a pension program.

In summary, option D aligns with the financial challenges faced by smaller businesses and the need for a large number of employees to participate in a pension program for it to be viable. Therefore,  option D  is the most plausible choice based on the information provided in the passage.

Answer: D

Sajjad1994 · Answer

Explanation

2. The passage asserts that the United States censuses of 1840 and 1890 do not provide information on which of the following?

Explanation

A.  The passage explicitly focuses on white men over 65 and does not provide information about the employment status of women over 65. Therefore, the census data is not expected to cover this aspect.

B.  Similar to choice A, the passage focuses on white men over 65, and there is no information about the employment status of African Americans over 65. The census data is not expected to cover this aspect.

C.  This is the correct answer. The passage mentions that the census data are silent on how many of the unemployed white men over 65 were physically incapable of working, how many could not find work, and how many had voluntarily retired. Therefore, the reasons behind the unemployment are not provided by the census data.

D.  The passage indicates that the census data do not provide information on whether unemployed white men over 65 had voluntarily retired or the reasons for their unemployment, including whether they had retired with pensions. Therefore, this aspect is also not addressed in the census data.

E.  The passage discusses the size of businesses but does not explicitly state that the census data do not provide information on the size of the firms where unemployed white men over 65 had most recently worked. Therefore, this aspect is not directly addressed in the passage.

In summary, the correct answer is  (C)  - The reasons why unemployed white men over 65 were not working. The passage clearly states that the census data are silent on the reasons behind the unemployment of white men over 65, including whether they were physically incapable of working, unable to find work, or had voluntarily retired.

Anwer: C

Sajjad1994 · Answer

Explanation

3. According to the passage, the United States census is not useful in testing the second explanation because

Explanation

A.  The passage focuses on the employment status of white men over 65, so the statement about men under 65 is not relevant to the reasons the census is not useful for testing the second explanation.

B.  This statement is inaccurate. The passage mentions that in 1840, about 70 percent of white men over 65 were gainfully employed, and fifty years later, the percentage was roughly the same. There is a clear discussion of changes in the percentage of gainfully employed white men over 65.

C.  This statement is not explicitly mentioned in the passage. The passage discusses the silence of census data on specific details related to the reasons for unemployment among white men over 65 but does not specify the absence of the word "retirement" in census questions.

D.  The passage does not mention any issues with the percentage of the population responding to the census. The primary issue is that the data are silent on specific details related to the reasons for unemployment among white men over 65.

E.  This is the correct answer. The passage explicitly states that the census data are not helpful in testing the second explanation because they are silent on how many of those not employed were physically incapable of working, how many could not find work, and how many had voluntarily retired. The census does not provide specific reasons for the unemployment status of white men over 65.

In summary, the correct answer is  (E)  - The census does not provide the specific reasons why unemployed white men over 65 were not part of the labor force. The passage emphasizes the lack of information on specific reasons for unemployment among older workers in the census data.

Answer: E

Sajjad1994 · Answer

Explanation

4. The passage suggests that mandatory retirement is more likely to exist when

Explanation

A.  This is the correct answer. The passage suggests that the absence of mandatory retirement during that era was due, in part, to the economic institutions' inability to support pension programs. It mentions that most businesses were not yet large enough to share the financial burdens of a pension program. The lack of widespread pension programs contributes to the absence of mandatory retirement.

B.  The passage does not provide information on the ability of employees who are forced to retire to find new jobs. The reasons discussed in the passage are related to the economic institutions and the size of businesses, not the reemployment prospects of those forced to retire.

C.  The passage does not address the desires of employees over 65 to retire. The absence of mandatory retirement is explained by economic factors and the lack of large businesses to support pension programs, not the preferences of older employees.

D.  This is not explicitly mentioned in the passage. While the second explanation suggests that older workers were retiring voluntarily, the passage also states that census data do not provide conclusive evidence on whether workers were retiring voluntarily.

E.  While the passage mentions that close and personal relations between employer and employee might have made involuntary retirement uncomfortable and infrequent in smaller enterprises, it is not the primary focus of the explanation for the absence of mandatory retirement. The economic factors are emphasized more.

In summary, the correct answer is  (A)  - The passage suggests that the absence of mandatory retirement is linked to the economic institutions' inability to support pension programs, and most businesses were not yet large enough to share the financial burdens of such programs.

Answer: A

GMATNinja · Answer

Question 1  
 
Here are a couple of highlights from the passage:

Paragraph 2: "... the few dozen employees in a sawmill or shoe factory were not enough to share the financial burdens of a pension program..."
 
 Paragraph 3: "... had smaller firms (ironworks, for example) wanted to retire their older workers, insurance companies would surely have moved in to combine the smaller firms' labor forces into a pool large enough to support a pension program."

So we know that a business can't have a pension program if it has a small labor force, but we're also told that smaller firms' labor forces could be combined into a pool large enough to support a pension program. All of this supports choice (D) -- you NEED a large number of employees participate to have a pension program.

And the passage does indeed tell us that this necessarily pooling COULD have been accomplished by insurance companies. But what if there were other options? Maybe the companies themselves could have pooled their labor forces, without the help of insurance companies? Or maybe other types of businesses (banks, perhaps?) could have played that role instead of insurance companies.

The passage tells us that insurance companies COULD have done the pooling, but that doesn't mean that the insurance companies were NECESSARY in order to have pension plans. The pooling could have happened by other means, so (E) is out.

I hope that helps!

tuyaras · Answer

I don't understand on question 2 "The passage asserts that the United States censuses of 1840 and 1890  do not  provide information on which of the following?"

All Choices A,B,C are also not in the passage and the passage only said that

"about 70 percent of white men over 65 were gainfully employed;" &
"because they are silent on how many of those not employed were physically incapable of working, how many could not find work, and how many had voluntarily retired."

which is about "How many" only, not "Reason" or "Why" at all. So why the answer is C ?

GMATNinja · Answer

Question 2 
 
Be careful with the wording of the question: "The passage  asserts  that the United States censuses of 1840 and 1890 do not provide information on which of the following?" In other words, the correct answer must be something that passage specifically describes as NOT being included in the census data.

(A) and (B) weren't mentioned at all, so it would be INCORRECT to say that the passage asserts anything about those two. (To be clear: for all we know, that information IS in the census data. But the passage simply didn't talk about it, so these can't be the right answer.)

The passage does, however, make assertions about choice (C). The final paragraph starts by telling us that the data are NOT useful to test the second explanation (that older workers were retiring voluntarily). This point is explained later in the paragraph:

In other words, we know that about 70 percent of white men over 65 were gainfully employed in both 1840 and 1890, but we do NOT know  why  those people were not working. So choice (C) works.

I hope that helps!

VerbalBot · Answer

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In 1860 in the United States, of all employees, only state judges in s

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In 1860 in the United States, of all employees, only state judges in s

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