Understanding the argument -
The economy is in a dismal state, universities are suffering from cutbacks, and many students must turn to any source of funds available if they are to make ends meet. - Background information.
Faced with this situation, the university has terminated the employment of some of its more productive departmental workers. - Observation.
Why? University regulations prohibit a student’s receiving financial aid and then working for an auxiliary income that exceeds a specified limit. - Explains the logic behind termination.
Employees whose incomes had reached that limit were terminated. - Fact.
Now, the university must find other employees. - Obvious effect of the termination.
Unfortunately, though, the university’s choice of students to fill the positions will not be based upon their abilities to perform, or even upon their financial need, but upon how much money they have made. - This is the rebuke of this strategy. Even if they are productive or have financial needs, their services are terminated if they reach a certain predefined limit.
Which one of the following is the best statement or the primary point of the passage? - The primary purpose here is the author's conclusion, given the facts in the argument.
(A) Good student-employees should be able to obtain financial aid and, at the same time, earn auxiliary incomes without limits. - Yes. This is what the author intends to do.
(B) In the face of a declining economy, universities need to be more lenient in their financial aid policies. - It's more general and doesn't specifically focus on the scope of the argument, which is student-employees.
(C) University departments must adhere to the university’s regulations. - "adherence" is out of scope.
(D) Decisions about student employment should be based entirely upon each student’s financial need. - ability is also important. No.
(E) Due to the problems created by a dismal economy, some student-workers have lost their jobs. - Fact and not a conclusion.