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