Logic Breakdown

Passage Summary: A columnist argues that raising the minimum wage is actually bad for poor people because the businesses they buy from will just raise prices to cover the higher labor costs.

Conclusion: Increasing the minimum wage to the proposed level will result in a net negative impact on low-income workers.

Reasoning: Higher wages force businesses to raise prices on essential goods and services that low-income individuals already struggle to afford.

Analysis: The columnist assumes that the price hikes will be so significant that they effectively cancel out or exceed the benefit of the higher wages. It is a classic economic trade-off argument, but it relies on the 'Necessary Assumption' that the workers' increased purchasing power won't stay ahead of the rising costs. Look for an answer that confirms the wage increase won't be enough to overcome the higher cost of living. If the workers ended up with more 'real' money despite the price hikes, the columnist's gloomy prediction would fail.

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10.

Which one of the following is an assumption on which the columnist's argument depends?

Correct Answer
C
The argument depends on low-income workers not being fully compensated by the wage increase for the price hikes. Negation test: if the proposed increase would wholly compensate them for the resulting price increases, then raising the minimum wage would not hurt them (and could help), destroying the columnist’s conclusion. So C is necessary.
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