MGMAT Test Question

[beatthegmatinsept]

The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.

Which of the following, if true, casts the most doubt on the validity of the argument above?

a) Major industry foresaw the drop in employment.
b) Some major industries had appreciable capital reserves.
c) An increase in labor costs could adversely affect the employment rate.
d) The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
e) The drop in the employment rate was more severe this year than last.

[SeemaSkl]

I think C

[FightWithGMAT]

The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.

Which of the following, if true, casts the most doubt on the validity of the argument above?

a) Major industry foresaw the drop in employment.
b) Some major industries had appreciable capital reserves.
c) An increase in labor costs could adversely affect the employment rate.
d) The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
e) The drop in the employment rate was more severe this year than last.

I think the best way to get max benefit is to first search the question with which you see many expert comments.
This question has been discussed many times.

This is a typical ALTERNATE CAUSE case of GMAT.

Ans is C