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01 Feb 2026, 11:49
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51% (02:13) correct
49%
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Workers in all the 12 sectors of the state of DimDom are highly unionized. Companies across the sectors are worried about the rapidly rising bargaining power of the workers which the workers have used since the last 2 years for negotiating a hike in their wages. The Department of Commerce, while empathizing with the corporate, has refused to take up the issue with the union leaders, increasing the anxiety of the industry which expects another demand of raise in the offing.
Which of the following, if true, most strongly supports the stance of the Department of Commerce?
A. Workers generally resort to strikes if their demands are not met.
B. In 10 of 12 sectors, raises failed to keep up with the levels of annual price increases.
C. 8 of the 12 sectors were more capital intensive and less labor intensive.
D. Due to the continual demand for wage increases, corporate has been hiring very few workers.
E. The revenues of all end products in all 12 sectors have registered a significant increase over the past few years.
Which of the following, if true, most strongly supports the stance of the Department of Commerce?
A. Workers generally resort to strikes if their demands are not met.
B. In 10 of 12 sectors, raises failed to keep up with the levels of annual price increases.
C. 8 of the 12 sectors were more capital intensive and less labor intensive.
D. Due to the continual demand for wage increases, corporate has been hiring very few workers.
E. The revenues of all end products in all 12 sectors have registered a significant increase over the past few years.
01 Feb 2026, 13:07
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Workers in all the 12 sectors of the state of DimDom are highly unionized. Companies across the sectors are worried about the rapidly rising bargaining power of the workers which the workers have used since the last 2 years for negotiating a hike in their wages. The Department of Commerce, while empathizing with the corporate, has refused to take up the issue with the union leaders, increasing the anxiety of the industry which expects another demand of raise in the offing.
Which of the following, if true, most strongly supports the stance of the Department of Commerce?
Workers are highly unionized and have recently won wage hikes. Companies are worried and want the Department of Commerce to intervene with union leaders, but the Department refuses. The best support for that refusal is evidence that the workers’ wage demands are reasonable or justified, so government intervention on behalf of companies would be inappropriate.
A. Workers generally resort to strikes if their demands are not met.
This makes the situation riskier, but it does not justify the Department’s refusal. If anything, it could be a reason to get involved.
B. In 10 of 12 sectors, raises failed to keep up with the levels of annual price increases.
This supports the Department’s stance. If wages have not even kept up with inflation in most sectors, then workers are not getting real gains, so another raise demand is not obviously excessive. That makes it more reasonable for the Department to stay out.
C. 8 of the 12 sectors were more capital intensive and less labor intensive.
This does not speak to whether wage demands are justified or whether the Department should intervene. Mostly irrelevant.
D. Due to the continual demand for wage increases, corporate has been hiring very few workers.
This supports the companies’ worry, not the Department’s refusal to intervene.
E. The revenues of all end products in all 12 sectors have registered a significant increase over the past few years.
Higher revenues could suggest firms can afford higher wages, but it is less direct than B because revenue growth does not automatically mean higher profits or ability to raise wages across the board. B more cleanly shows wages lagging behind prices.
Answer: (B)
Which of the following, if true, most strongly supports the stance of the Department of Commerce?
Workers are highly unionized and have recently won wage hikes. Companies are worried and want the Department of Commerce to intervene with union leaders, but the Department refuses. The best support for that refusal is evidence that the workers’ wage demands are reasonable or justified, so government intervention on behalf of companies would be inappropriate.
A. Workers generally resort to strikes if their demands are not met.
This makes the situation riskier, but it does not justify the Department’s refusal. If anything, it could be a reason to get involved.
B. In 10 of 12 sectors, raises failed to keep up with the levels of annual price increases.
This supports the Department’s stance. If wages have not even kept up with inflation in most sectors, then workers are not getting real gains, so another raise demand is not obviously excessive. That makes it more reasonable for the Department to stay out.
C. 8 of the 12 sectors were more capital intensive and less labor intensive.
This does not speak to whether wage demands are justified or whether the Department should intervene. Mostly irrelevant.
D. Due to the continual demand for wage increases, corporate has been hiring very few workers.
This supports the companies’ worry, not the Department’s refusal to intervene.
E. The revenues of all end products in all 12 sectors have registered a significant increase over the past few years.
Higher revenues could suggest firms can afford higher wages, but it is less direct than B because revenue growth does not automatically mean higher profits or ability to raise wages across the board. B more cleanly shows wages lagging behind prices.
Answer: (B)
02 Feb 2026, 09:46
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Good question - requires a bit of reasoning, but here is my explanation.
We are looking for an option that helps explain why the Department of Commerce (DOC) refused to contact union leaders.
A. Workers generally resort to strikes if their demands are not met. WRONG.
There is no worker demand on the table currently. The measures taken by corporate are not a rebuttal to a possible plan of the workers/unions, they are preemptive measures. Even if this is true, it doesn't explain why the DOC leaders refuse to contact unions (for a discussion). There are no demands to reject here.
B. In 10 of 12 sectors, raises failed to keep up with the levels of annual price increases. CORRECTO.
This one looks decent - if the annual prices (of things in general) have increased more than the raises of the workers, it would make sense for the DOC to not act against the interest of the workers. Hence, rejecting any talks with the union heads.
C. 8 of the 12 sectors were more capital intensive and less labor intensive. WRONG.
If this were the case, it would make the situation a whole lot simpler. The companies would just fire workers since the industries aren't labour-intensive - essentially, the workers wouldn't have so much leverage. But this doesn't explain why the DOC rejected talks with the Union Leaders. I cannot find a meaningful implication for the rejection of talks based on this answer choice.
D. Due to the continual demand for wage increases, corporate has been hiring very few workers. WRONG.
If this were true, we probably would've seen the DOC leaders reach out to Union Leaders. "They are already hiring fewer of you because of wage increases, hold off on it this year otherwise the number of jobs will go down even more for you." Weakener.
E. The revenues of all end products in all 12 sectors have registered a significant increase over the past few years. WRONG.
If the revenues have increased for all 12 sectors in the past few years, the DOC not talking to the Union Leaders makes sense - because the workers deserve more money. Makes sense, right? WRONG. Because we cannot say that the increase in revenue was a direct impact of the workers' efforts - it is a major possibility that revenues have increased due to improvements at other stages of the sell side economics. Attributing the entire increase in revenue to the workers is a stretch, and therefore doesn't justify why the DOC refused to talk to the Union Leaders.
____________________________________________
Aakkash Singh
V90 | Verbal Expert
My Website : www.centprep.com
Book a free tutoring session : www.calendly.com/aakkashgmat
We are looking for an option that helps explain why the Department of Commerce (DOC) refused to contact union leaders.
A. Workers generally resort to strikes if their demands are not met. WRONG.
There is no worker demand on the table currently. The measures taken by corporate are not a rebuttal to a possible plan of the workers/unions, they are preemptive measures. Even if this is true, it doesn't explain why the DOC leaders refuse to contact unions (for a discussion). There are no demands to reject here.
B. In 10 of 12 sectors, raises failed to keep up with the levels of annual price increases. CORRECTO.
This one looks decent - if the annual prices (of things in general) have increased more than the raises of the workers, it would make sense for the DOC to not act against the interest of the workers. Hence, rejecting any talks with the union heads.
C. 8 of the 12 sectors were more capital intensive and less labor intensive. WRONG.
If this were the case, it would make the situation a whole lot simpler. The companies would just fire workers since the industries aren't labour-intensive - essentially, the workers wouldn't have so much leverage. But this doesn't explain why the DOC rejected talks with the Union Leaders. I cannot find a meaningful implication for the rejection of talks based on this answer choice.
D. Due to the continual demand for wage increases, corporate has been hiring very few workers. WRONG.
If this were true, we probably would've seen the DOC leaders reach out to Union Leaders. "They are already hiring fewer of you because of wage increases, hold off on it this year otherwise the number of jobs will go down even more for you." Weakener.
E. The revenues of all end products in all 12 sectors have registered a significant increase over the past few years. WRONG.
If the revenues have increased for all 12 sectors in the past few years, the DOC not talking to the Union Leaders makes sense - because the workers deserve more money. Makes sense, right? WRONG. Because we cannot say that the increase in revenue was a direct impact of the workers' efforts - it is a major possibility that revenues have increased due to improvements at other stages of the sell side economics. Attributing the entire increase in revenue to the workers is a stretch, and therefore doesn't justify why the DOC refused to talk to the Union Leaders.
____________________________________________
Aakkash Singh
V90 | Verbal Expert
My Website : www.centprep.com
Book a free tutoring session : www.calendly.com/aakkashgmat
