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10 Jan 2022, 03:30
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Difficulty:
95%
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Question Stats:
54% (02:32) correct
46%
(02:59)
wrong
based on 550
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In the nation of Malugia, the Secretary of Labor’s office released statistics indicating that last month, Malugia added 14,000 jobs in the tin refining industry, which in turn will supply many of Malugia’s manufacturing sectors. A large number of the new employees came from a variety of different service industries jobs that were lost over the past three years. The jobs growth came almost immediately after the national bond rate dropped, and the Secretary’s office attributes the new jobs directly to the lower bond rate: indeed, all three big tin refineries took out bonds to finance the new hirings. Economics professors at the national university, though, argue that the new bond rate was not the key reason that the new jobs were added.
Which of the following, if true, does most to help explain the economic professors’ doubt that the new bond rate was the primary cause of the new jobs?
A. Six months ago, the number one complaint among surveyed service industry workers was low wages, and employees in the tin refining industry earn much higher wages on average.
B. Two months ago, Malugia imposed new tariffs against Aplandia, blocking imports of cheaper Aplandian tin, which had been depressing the price of domestic tin.
C. Three members of the board that determines bond rates hold substantial holdings in the largest of the three tin refineries.
D. The Secretary of Labor’s office had been planning a number of stimulus packages to revive the tin refining industry, which had no substantial hires in the previous five years.
E. Over the past year, community colleges in Malugia offered people short-term, low-cost courses training people in all the necessary skills needed in the tin refining industry.
Which of the following, if true, does most to help explain the economic professors’ doubt that the new bond rate was the primary cause of the new jobs?
A. Six months ago, the number one complaint among surveyed service industry workers was low wages, and employees in the tin refining industry earn much higher wages on average.
B. Two months ago, Malugia imposed new tariffs against Aplandia, blocking imports of cheaper Aplandian tin, which had been depressing the price of domestic tin.
C. Three members of the board that determines bond rates hold substantial holdings in the largest of the three tin refineries.
D. The Secretary of Labor’s office had been planning a number of stimulus packages to revive the tin refining industry, which had no substantial hires in the previous five years.
E. Over the past year, community colleges in Malugia offered people short-term, low-cost courses training people in all the necessary skills needed in the tin refining industry.
mavelous
Joined: 10 Mar 2013
Last visit: 02 Jan 2026
Posts: 42
Given Kudos: 184
Location: Turkmenistan
Schools: McCombs '23 INSEAD Jan'23 intake
GMAT 1: 730 Q45 V44
10 Jan 2022, 19:58
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Bunuel
Having trained people is well and all, but it doesn't explain the production rise, nor does it mean that people took up the cheap classes necessarily
05 Feb 2023, 03:09
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A) This is irrelevant. The passage is not worried about the service industry wage vs the refinement industry wage.
B) Good choice. If this is the case, then the new jobs could have been created to help restore the tin supply which has been lowered because of the tariffs. This provides an alternative reasoning to the change in bonds, so it is a likely choice. Keep.
C) Not relevant to the argument. So what if the people who determine the bond rate are stakeholders in the refinement?
D) This is not even a plan that was enacted. This is just telling us what someone was planning. Does not help the economists at all. If anything, it weakens
E) This is close, but not quite correct. Sure, If people were to take those classes that would lead to a situation where more people now have skills to work in the refinement center, but this does not guarantee that those people will get jobs, or that jobs will be created for those people. For E to work, we need the additional assumption that at least some jobs were created to accommodate the larger number of people with the skill set and that people actually took those classes.
E is a much weaker choice than B, so B wins.
B) Good choice. If this is the case, then the new jobs could have been created to help restore the tin supply which has been lowered because of the tariffs. This provides an alternative reasoning to the change in bonds, so it is a likely choice. Keep.
C) Not relevant to the argument. So what if the people who determine the bond rate are stakeholders in the refinement?
D) This is not even a plan that was enacted. This is just telling us what someone was planning. Does not help the economists at all. If anything, it weakens
E) This is close, but not quite correct. Sure, If people were to take those classes that would lead to a situation where more people now have skills to work in the refinement center, but this does not guarantee that those people will get jobs, or that jobs will be created for those people. For E to work, we need the additional assumption that at least some jobs were created to accommodate the larger number of people with the skill set and that people actually took those classes.
E is a much weaker choice than B, so B wins.
