Kirlandia's economy

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Kirlandia's economy

by Dean Jones » Thu Jul 14, 2011 11:13 am
Hi Friends, I am having dificulty in answering the following question. Please help.


In two months, the legal minimum wage in the country of Kirlandia will increase from five Kirlandic
dollars(KD5.00) Per hour to KD5.50 per hour. Opponents of this increase have argued that the resulting rise in wages will drive the inflation rate up. In fact its impact on wages will probably be negligible, since only a very small proportion of all Kirfandic workers are currently receiving less than KD5.50 per hour.

Which of the following, if true, most seriously weakens the argument?

A. Most people in kirlandia who are currently earning the minimum wage have been employed at their
current jobs for less than a year.

B. Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of
kirlandic employment regulations.

C. Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their paylevels above the pay level of trainees.

D. The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers
earn wages that tend to be much higher than the minimum wage.

E The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.


OA after some discussions.

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by rob338 » Thu Jul 14, 2011 10:52 pm
IMO c

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by sandeeptalla450 » Fri Jul 15, 2011 1:20 pm
The argument concludes that "the change in the legal minimum wage will affect only a very small proportion of all Kirfandic workers".

Consider the options:

A. Most people in kirlandia who are currently earning the minimum wage have been employed at their
current jobs for less than a year.
- The duration for which people are employed does not help in weakening the question, as we do not know how the wages of these workers will be affected with greater work experience.
B. Some firms in Kirlandia have paid workers considerably less than KD5.00 per hour, in violation of
kirlandic employment regulations.
- These firms may/may not continue doing so. The new law is not affecting these firms.
C. Many businesses hire trainees at or near the minimum wage but must reward trained workers by keeping their paylevels above the pay level of trainees.
- CORRECT. In addition to paid workers, the trainees will also be affected by the minimum wage. Hence, a greater portion of the workers are now affected by the wage change. This weakens the author's argument that only a very small portion of all the workers are affected by the wage change.
D. The greatest growth in Kirlandia's economy in recent years has been in those sectors where workers
earn wages that tend to be much higher than the minimum wage.
- The wage change does not affect this category of people.
E The current minimum wage is insufficient for a worker holding only one job to earn enough to support a family, even when working full time at that job.
- Irrelevant.