gmatnmein2010 wrote: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?

Cause >>>>>> Lack of capital reserves
Effect >>>>>> Decline in employment rate

a. Major industry foresaw the drop in employment.
Incorrect : Whether major industries foresaw the drop in employment is not relevant.

b. Some major industries had appreciable capital reserves.
Incorrect : Argument talks about major industries in general not SOME major industries. Eliminated !

c. An increase in labor costs could adversely affect the employment rate.
Correct : This show an alternate cause (increase in labor costs) for the stated effect (drop in employment rate). Hence this weakens the argument.

d. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
Incorrect : This does nothing to weaken the argument above.

e. The drop in the employment rate was more severe this year than last.
Incorrect : How does it effect the conclusion of the argument? Eliminated !