Economist: The increase in

Answer choices

1. A

   Weakens11% picked this

   The cost of a minimum-wage increase in Country X will be passed on to consumers in the form of significantly

   This hurts the connection between higher minimum wage and more purchases of consumer goods. Perhaps the people with higher wages will be eager to spend their extra money, but if the prices of consumer goods go up in general, that will have the effect of decreasing spending on consumer goods.

   11%
2. B

   Weakens9% picked this

   Most of the consumer goods sold in Country X are produced

   This weakens the connection between higher spending on consumer goods and more domestic jobs being created. Yes, spending on goods will line the pockets of the manufacturers of these goods, but if they're in other countries mostly, then the new jobs created will be in other countries and won't help to reduce the unemployment in Country X.

   9%
3. C

   Correct58% picked this

   In many factories in Country X, most workers are paid much more than the

   Why this is right

   This has no impact. Someone might think we can weaken the argument by saying, "since most workers make much more than minimum wage, they won't be affected by an increase in the minimum wage, so that weakens the idea that it will quickly lead to a decrease in unemployment." But this answer is very limited in scope, since it applies to many factories. It's saying that in at least five factories a majority of the workers make well above the current minimum wage. Okay, does that hurt any part of the story the author is trying to tell? Was she thinking that factory workers were paid at or near the current minimum wage? No, she's was saying "anyone who DOES make the current minimum wage will have more disposable income when the min wage increase happens, and that extra spending and consumer demand will lead to the creation of factory jobs (that might get paid at any rate, doesn't matter)." This answer is just kind of a word salad, because in the story the author is telling, the people who make minimum wage are responsible for driving up consumer demand, and the decrease in unemployment will come from the labor demand that creates for factory jobs. But whether factory jobs involve minimum wage is irrelevant.

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

   58%
4. D

   Weakens10% picked this

   The cost to employers of an increase in the minimum wage in Country X will be made up

   This gets at our common sense objection that if we raise minimum wage, some employers won't be able to afford all their employees anymore, so they will lay some off, thereby increasing unemployment.

   10%
5. E

   Weakens12% picked this

   Most factories that produce consumer goods in Country X have large surpluses of goods as a result

   This attacks the connection between "more consumer goods purchased" and "factories will need to hire more people to make more goods". It's saying, "Nah, they're good with goods. They've got a large surplus just sitting in a warehouse from years of overproduction."

   12%