Logical Reasoning

PT129 · S1 · Q8 When companies' profits would otherwise

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When companies' profits would otherwise be reduced by an increase in the minimum wage (a wage rate set by the government as the lowest that companies are allowed to pay), the companies often reduce the number of workers they employ.

Apparent Paradox

When companies’ profits would otherwise be reduced by an increase in the minimum wage, the companies often reduce the number of workers they employ. Yet a recent increase in the minimum wage did not result in job cutbacks in the fast-food industry, where most workers are paid the minimum wage.

Evaluate

The recent case appears to be a counterexample. But to what? It’s a counterexample to the notion that when there’s an increase in the minimum wage, companies often reduce the number of workers they employ. Spot the difference between that and the first sentence? The latter includes something else in the trigger about reduced profits.

8.

Which one of the following, if true, most helps to explain why the increase in the minimum wage did not affect the number of jobs in the fast-food industry?

  1. Correct

    After the recent increase in

    Why this is right

    This makes sure that the rule does not apply to the case at hand and resolves the apparent contradiction.

    Skill tested: Paradox · how this choice captures the argument's function is the move to repeat next time.

    83% picked this

  2. If, in any industry, an

    Half Scope

    This does not apply to the counterexample.

    2% picked this

  3. With respect to its response

    Out of Scope

    Those other industries are not relevant to the apparent contradiction.

    2% picked this

  4. A few employees in the

    Too Weak

    A few employees could be so few that their impact on the counterexample is negligible.

    11% picked this

  5. Sales of fast food to

    Enhances the Paradox

    This makes it more puzzling that there were not job cutbacks, since this takes away at least one way in which companies could make up the new cost.

    2% picked this

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