dan
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Atticus Finch
Atticus Finch
 
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PT50, S2, Q8 When companies' profits would otherwise be

by dan Wed Jul 28, 2010 3:58 pm

8. (A)
Question type: Explain a Result

A rise in costs due to increases in minimum wage generally leads to a reduction of employees, but this has not been the case in the fast-food industry. We must explain this result. Most likely, the explain will involve a reason why the minimum wage change didn’t increase costs, or another way to offset increased costs, or another reason why the work force couldn’t be reduced.

(A) helps explain this unexpected result _ the companies were able to offset increased costs with lower recruiting costs, and therefore didn’t need to cut staff.

(B) does not explain the unexpected result _ in fact, it seems to lead to an opposite conclusion _that more jobs will be cut.
(C) is outside the scope of the argument.
(D) does not explain the unexpected result.
(E) is outside the scope of the argument.