medium · GMAT Verbal Reasoning
An analyst claims that increasing the minimum wage leads to higher overall consumer spending because low-wage workers tend to spend a higher percentage of their income.
Which of the following, if true, most strengthens the analyst's conclusion?
- Most low-wage workers currently save less than five percent of their take-home income, meaning that they already spend nearly all of what they earn during a typical month.
- The federal minimum wage in the country has not been adjusted upward to keep pace with inflation at any point during the past several years.
- Some businesses that are faced with higher labor costs may well respond by raising the prices of at least some of the goods and services that they sell to consumers.
- Studies confirm that added spending by low-wage workers is not cancelled out by reduced spending from other groups affected by the wage increase.
- The low-wage workers who were surveyed report that they personally would feel noticeably more financially secure if they were paid a somewhat higher hourly wage.
Sign up free to see the explanation and track your rank →
More GMAT Verbal Reasoning practice
- A gardener says: 'All roses in this garden require daily… What is the role of the…
- What is the conclusion?
- What logical role does the first sentence play in the researcher's argument?
- What logical role do the first two statements play?
- Which of the following is the conclusion?
- What is the conclusion?
- Which statement is the conclusion?
- What is the conclusion?
All Verbal Reasoning questions · GMAT study guide · GMAT glossary · GMAT flashcards