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hard · GMAT Verbal Reasoning

**A recent economic report argues that the increase in the national minimum wage will lead to a decrease in the total number of entry-level jobs.** However, this prediction is likely to be incorrect. **Historical data from neighboring countries shows that higher wages often lead to increased consumer spending**, which in turn creates a higher demand for services and sustains employment levels. In the argument given,

In the argument, the two portions in boldface play which of the following roles?

  1. The first is a premise that supports the argument’s conclusion; the second is the argument’s main conclusion.
  2. The first is a position the argument opposes; the second is evidence for the argument's main conclusion.
  3. The first is a claim for which no evidence is provided; the second is a generalization that the author rejects.
  4. The first is the argument’s main conclusion; the second is a premise that contradicts that conclusion.
  5. The first is background information; the second is an intermediate conclusion that leads to the final claim.

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