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29 Aug 2026, 03:43
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Difficulty:
65%
(hard)
Question Stats:
56% (01:58) correct
44%
(02:01)
wrong
based on 77
sessions
History
Date
Time
Result
Not Attempted Yet
Economist: The increase in the minimum wage in Country X will quickly lead to a decrease in Country X's rate of unemployment. Raising the minimum wage will lead to more disposable income for a large segment of the working population. Much of this increased income will be spent on consumer goods. Surely this increase in demand for consumer goods will lead to an increase in the number of factory jobs necessary to meet production.
Each of the following, if true, would weaken the economist's argument EXCEPT:
(A) The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly higher prices for consumer goods.
(B) Most of the consumer goods sold in Country X are produced outside the country.
(C) In many factories in Country X, most workers are paid much more than the current minimum wage.
(D) The cost to employers of an increase in the minimum wage in Country X will be made up by reductions in the workforce.
(E) Most factories that produce consumer goods in Country X have large surpluses of goods as a result of years of overproduction.
Each of the following, if true, would weaken the economist's argument EXCEPT:
(A) The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly higher prices for consumer goods.
(B) Most of the consumer goods sold in Country X are produced outside the country.
(C) In many factories in Country X, most workers are paid much more than the current minimum wage.
(D) The cost to employers of an increase in the minimum wage in Country X will be made up by reductions in the workforce.
(E) Most factories that produce consumer goods in Country X have large surpluses of goods as a result of years of overproduction.
29 Aug 2026, 13:45
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Economist: The increase in the minimum wage in Country X will quickly lead to a decrease in Country X's rate of unemployment. Raising the minimum wage will lead to more disposable income for a large segment of the working population. Much of this increased income will be spent on consumer goods. Surely this increase in demand for consumer goods will lead to an increase in the number of factory jobs necessary to meet production.
Each of the following, if true, would weaken the economist's argument EXCEPT:
The economist argues that a higher minimum wage will increase disposable income, which will increase demand for consumer goods, which will create more factory jobs and reduce unemployment. We need the choice that does not weaken this chain.
(A) The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly higher prices for consumer goods.
Incorrect. Higher prices could reduce the additional purchasing power created by the wage increase, weakening the expected increase in demand.
(B) Most of the consumer goods sold in Country X are produced outside the country.
Incorrect. If increased demand is mainly satisfied by foreign producers, it may not create many factory jobs in Country X.
(C) In many factories in Country X, most workers are paid much more than the current minimum wage.
Correct. The argument does not require current factory workers to receive the minimum-wage increase. What matters is that a large segment of consumers receives more disposable income and spends more, potentially creating demand for additional factory workers. So this does not weaken the argument.
(D) The cost to employers of an increase in the minimum wage in Country X will be made up by reductions in the workforce.
Incorrect. If employers respond by eliminating jobs, the minimum-wage increase could raise unemployment rather than reduce it.
(E) Most factories that produce consumer goods in Country X have large surpluses of goods as a result of years of overproduction.
Incorrect. If factories already have large inventories, they could meet increased demand by selling existing goods rather than increasing production and hiring more workers.
Answer: (C)
Each of the following, if true, would weaken the economist's argument EXCEPT:
The economist argues that a higher minimum wage will increase disposable income, which will increase demand for consumer goods, which will create more factory jobs and reduce unemployment. We need the choice that does not weaken this chain.
(A) The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly higher prices for consumer goods.
Incorrect. Higher prices could reduce the additional purchasing power created by the wage increase, weakening the expected increase in demand.
(B) Most of the consumer goods sold in Country X are produced outside the country.
Incorrect. If increased demand is mainly satisfied by foreign producers, it may not create many factory jobs in Country X.
(C) In many factories in Country X, most workers are paid much more than the current minimum wage.
Correct. The argument does not require current factory workers to receive the minimum-wage increase. What matters is that a large segment of consumers receives more disposable income and spends more, potentially creating demand for additional factory workers. So this does not weaken the argument.
(D) The cost to employers of an increase in the minimum wage in Country X will be made up by reductions in the workforce.
Incorrect. If employers respond by eliminating jobs, the minimum-wage increase could raise unemployment rather than reduce it.
(E) Most factories that produce consumer goods in Country X have large surpluses of goods as a result of years of overproduction.
Incorrect. If factories already have large inventories, they could meet increased demand by selling existing goods rather than increasing production and hiring more workers.
Answer: (C)
29 Aug 2026, 21:19
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Economist: The increase in the minimum wage in Country X will quickly lead to a decrease in Country X's rate of unemployment. Raising the minimum wage will lead to more disposable income for a large segment of the working population. Much of this increased income will be spent on consumer goods. Surely this increase in demand for consumer goods will lead to an increase in the number of factory jobs necessary to meet production.
Conclusion of Economist: Increase in minimum wages =>>> quick reduction in unemplyment.
How??
Increased wages >>>> More disposable income(1) >>>> Increased Demand of consumer goods(2) >>>> Increase in production(3) >>>> New workers employed(4) >>>> Decrease in unemplyment.
Each of the following, if true, would weaken the economist's argument EXCEPT:
So we look for a break in the flow of events (1 to 4)
(A) The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly higher prices for consumer goods.
Higher prices would mean the higher disposable income goes in the increased prices. Thus, the demand does not go up.
The chain breaks at (2)
(B) Most of the consumer goods sold in Country X are produced outside the country.
The chain remains intact overall but point C is no more in Country X.
So, the chain breaks at (4) for country X.
(C) In many factories in Country X, most workers are paid much more than the current minimum wage.
All the steps remain valid.
Although now we have reason to believe that there will be many factory workers who would not be contributing to this increased demand. But..
(i) Even few factory workers would have higher disposable income and would lead to ultimate conclusion. Note that we are not giving any % to the decrease. Even 1% decrease in employment will validate the argument.
(ii) The argument is about all workers and not limited to factory worker.
Thus, this does not weaken the argument.
(D) The cost to employers of an increase in the minimum wage in Country X will be made up by reductions in the workforce.
The chain breaks at (4). The increase in new workers in factories to produce additional goods is offset by layoff at factories/firms where the minimum wages have been increased.
(E) Most factories that produce consumer goods in Country X have large surpluses of goods as a result of years of overproduction.
Here, the chain breaks at (3) itself.
Answer (C)
Conclusion of Economist: Increase in minimum wages =>>> quick reduction in unemplyment.
How??
Increased wages >>>> More disposable income(1) >>>> Increased Demand of consumer goods(2) >>>> Increase in production(3) >>>> New workers employed(4) >>>> Decrease in unemplyment.
Each of the following, if true, would weaken the economist's argument EXCEPT:
So we look for a break in the flow of events (1 to 4)
(A) The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly higher prices for consumer goods.
Higher prices would mean the higher disposable income goes in the increased prices. Thus, the demand does not go up.
The chain breaks at (2)
(B) Most of the consumer goods sold in Country X are produced outside the country.
The chain remains intact overall but point C is no more in Country X.
So, the chain breaks at (4) for country X.
(C) In many factories in Country X, most workers are paid much more than the current minimum wage.
All the steps remain valid.
Although now we have reason to believe that there will be many factory workers who would not be contributing to this increased demand. But..
(i) Even few factory workers would have higher disposable income and would lead to ultimate conclusion. Note that we are not giving any % to the decrease. Even 1% decrease in employment will validate the argument.
(ii) The argument is about all workers and not limited to factory worker.
Thus, this does not weaken the argument.
(D) The cost to employers of an increase in the minimum wage in Country X will be made up by reductions in the workforce.
The chain breaks at (4). The increase in new workers in factories to produce additional goods is offset by layoff at factories/firms where the minimum wages have been increased.
(E) Most factories that produce consumer goods in Country X have large surpluses of goods as a result of years of overproduction.
Here, the chain breaks at (3) itself.
Answer (C)
