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emp vs automated equipment

Expert replies
by AIM GMAT » Sat Apr 02, 2011 9:24 pm
In many corporations, employees are being replaced by automated equipment in order to save money. However,many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

1. The author is arguing that
(A) higher taxes and unemployment insurance payments will discourage corporations from automating
(B) replacing people through automation to reduce production costs will result in increases of other costs to
corporations.
(C) many workers who lose their jobs to automation will have to be retrained for new jobs
(D) corporations that are laying people off will eventually rehire many of them
(E) corporations will not save money by automating because people will be needed to run the new machines

2.Which of the following, if true, most strengthens the author's argument?
a. Many workers who have already lost their jobs to automation have been unable to find new jobs.
b. Many corporations that have failed to automate have seen their profits decline.
c. Taxes and unemployment insurance are paid also by corporations that are not automating.
d. Most of the new jobs created by automation pay less than the jobs eliminated by automation did.
e. The initial investment in machinery for automation is often greater than the short-term savings in labor costs.
Thanks & Regards,
AIM GMAT
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Source: — Critical Reasoning |

by atulmangal » Sat Apr 02, 2011 10:58 pm
AIM GMAT wrote:In many corporations, employees are being replaced by automated equipment in order to save money. However,many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

1. The author is arguing that
(A) higher taxes and unemployment insurance payments will discourage corporations from automating
This statement is too broad, and imply result while argument doesn't indicate any result.
(B) replacing people through automation to reduce production costs will result in increases of other costs to corporations. CORRECT (see the reasoning below)
(C) many workers who lose their jobs to automation will have to be retrained for new jobs
Argument doesn't indicate this idea.
(D) corporations that are laying people off will eventually rehire many of them
Argument doesn't conclude this idea
(E) corporations will not save money by automating because people will be needed to run the new machines Argument doesn't conclude this idea

2.Which of the following, if true, most strengthens the author's argument?
a. Many workers who have already lost their jobs to automation have been unable to find new jobs.
CORRECT (See the reasoning below)
b. Many corporations that have failed to automate have seen their profits decline.IRRELEVANT
c. Taxes and unemployment insurance are paid also by corporations that are not automating. WEAKEN THE CONCLUSION
d. Most of the new jobs created by automation pay less than the jobs eliminated by automation did. Does'nt matter its about unemloyment
e. The initial investment in machinery for automation is often greater than the short-term savings in labor costs.IRRELEVANT
Question1:-

IMO B

Author talks about two type of cost (production cost and cost of taxes and insurance ), and the in his argument he shows the relation b/w them...Op B clearly represents this relationship hence B.

Question 2:-

IMO A

if the workers who lost their job because of automation get a new job then government will not put taxes etc...and thus companies will not pay extra money....A states that people are not getting job after loosing because of automation hence it strengthens the conclusion that companies has to pay taxes and insurance etc...
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by force5 » Sun Apr 03, 2011 2:14 pm
Q1- IMO-B

between A and B- argument doesn't talk about companies not automating.
b speaks about costing which is required

Q2- IMO-A
only then the companies will end up paying more... if the employees who lost job get a job .. then they wouldnt need any assistance.
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by mundasingh123 » Sun Apr 03, 2011 9:35 pm
I feel that c is a weakener.
Can someone explain the role played by C .Is this what a weakener should do ?
I Seek Explanations Not Answers
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