MGMAT

This topic has expert replies
Legendary Member
Posts: 891
Joined: Sat Aug 16, 2008 4:21 am
Thanked: 27 times
Followed by:1 members
GMAT Score:660(

MGMAT

by 4meonly » Sat Jan 31, 2009 2:23 am
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?

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

OA C
Source: — Critical Reasoning |

Legendary Member
Posts: 727
Joined: Sun Jun 08, 2008 9:32 pm
Thanked: 8 times
Followed by:1 members

by umaa » Sat Jan 31, 2009 8:40 am
I'm little confused between B and C.

Senior | Next Rank: 100 Posts
Posts: 64
Joined: Sat Oct 18, 2008 10:32 am
Location: Phoenix
Thanked: 1 times

by gkammaje » Sat Jan 31, 2009 9:25 am
I think C is the only one that makes sense

The argument states that the employment rate is effected by the lack of capital reserves.
What else would effect the employment rate? An increase is labor costs could result is job loss...hence C

Junior | Next Rank: 30 Posts
Posts: 29
Joined: Thu Jan 22, 2009 10:19 am
Thanked: 1 times

by frizo » Sun Feb 01, 2009 4:47 am
C has to be the answer.
B says that SOME INDUSTRIES had reserves which means SOME OTHERS may not have had. This makes the ans. choice half wrong. HALF WRONG IS ALWAYS FULLY WRONG. :wink:

Master | Next Rank: 500 Posts
Posts: 100
Joined: Tue Aug 05, 2014 11:14 am

by Brad.C » Fri May 13, 2016 2:24 pm
I also think about answer C