Economist: During a recession, a company can cut personnel costs either by laying off some employees without reducing the wages of remaining employees or by reducing the wages of all employees without laying off anyone. Both damage morale, but layoffs damage it less, since the aggrieved have, after costs during recessions, they are likely to lay off employees.
What this question is testing
Your task
Find the choice that makes the argument's conclusion more likely to be true.
Common trap
Answers that are consistent with the argument but add no real support, or that strengthen a claim the argument doesn't make.
Winning move
Locate the gap between evidence and conclusion, then pick the choice that closes it.
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