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A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.
Q. Which of the following, if true, most helps to resolve the apparent paradox?
  • a)
    Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.
  • b)
    The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.
  • c)
    The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.
  • d)
    When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.
  • e)
    The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.
Correct answer is option 'B'. Can you explain this answer?
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A discount retailer of basic household necessities employs thousands o...
The question to be resolved is why the mandated wage increase, which increased operating costs, was accompanied by an increase in profits. By showing how the wage increase might have led to an increase in the retailer’s sales, choice B helps resolve this question, and thus is the best answer.
Choices A and E are incorrect, since they suggest that the wages that rose as a result of the mandated increase constituted a significant proportion of the retailer’s expenditures, which if anything adds to the seeming paradox. Choices C and D also contribute to the paradox, since they indicate that along with increases in the minimum wage there were increases in the retailer’s operating costs; so choices C and D are also incorrect.
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Most Upvoted Answer
A discount retailer of basic household necessities employs thousands o...
's labor costs, the retailer decides to cut jobs and reduce employee hours to compensate for the increased wage expenses. This action may improve the company's profitability in the short term, but it could also lead to negative consequences in the long term.

By cutting jobs and reducing employee hours, the retailer risks losing the loyalty and motivation of its remaining workers, who may be overworked and underpaid. This could lead to high employee turnover, reduced productivity, and decreased customer satisfaction. Moreover, the company may face public backlash and damage to its reputation as a result of its decision to prioritize profits over its employees' well-being.

In the long run, the retailer may find it harder to attract and retain talented workers who are willing to work for low wages and poor working conditions. This could lead to a decline in the company's overall performance and competitiveness. On the other hand, investing in employee training and development, offering competitive wages and benefits, and creating a positive work environment could help the retailer attract and retain top talent and improve its long-term profitability.
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Directions: Read the Passage carefully and answer the question as follow.The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations. Accordingly, therefore, as this produce, or what is purchased with it, bears a greater or smaller proportion to the number of those who are to consume it, the nation will be better or worse supplied with all the necessaries and conveniences for which it has occasion.But this proportion must in every nation be regulated by two different circumstances: first, by the skill, dexterity, and judgment with which its labour is generally applied; and, second, by the proportion of the number of people who are employed in useful labour to that of those who are not so employed. Whatever be the soil, climate, or extent of territory of any particular nation, the abundance or scantiness of its annual supply must, in that particular situation, depend upon these two circumstances.Moreover, the abundance or scantiness of this supply seems to depend more upon the former of those two circumstances than upon the latter. Among the savage nations of hunters and fishers, every individual who is able to work is more or less employed in useful labour, and endeavours to provide, as well as he can, the necessities and conveniences of life, for himself, and such of his family or tribe as are either too old, or too young, or too infirm to go hunting and fishing. Such nations, however, are so miserably poor, that, from mere want, they are frequently reduced, or at least think themselves reduced, to the necessity sometimes of directly destroying, and sometimes of abandoning their infants, their old people, and those afflicted with lingering diseases, to perish with hunger, or to be devoured by wild beasts. Among civilized and thriving nations, on the contrary, though a great number of people do not labour at all, many of whom consume the produce of ten times, frequently of a hundred times, more labour than the greater part of those who work; yet the produce of the whole labour of the society is so great, that all are often abundantly supplied and a workman, even of the lowest and poorest order, if he is frugal and industrious, may enjoy a greater share of the necessities and conveniences of life than is possible for any savage to acquire.Q.What is the connotation of the term ‘savage nations’ in context of the passage?

Directions: Read the Passage carefully and answer the question as follow.The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations. Accordingly, therefore, as this produce, or what is purchased with it, bears a greater or smaller proportion to the number of those who are to consume it, the nation will be better or worse supplied with all the necessaries and conveniences for which it has occasion.But this proportion must in every nation be regulated by two different circumstances: first, by the skill, dexterity, and judgment with which its labour is generally applied; and, second, by the proportion of the number of people who are employed in useful labour to that of those who are not so employed. Whatever be the soil, climate, or extent of territory of any particular nation, the abundance or scantiness of its annual supply must, in that particular situation, depend upon these two circumstances.Moreover, the abundance or scantiness of this supply seems to depend more upon the former of those two circumstances than upon the latter. Among the savage nations of hunters and fishers, every individual who is able to work is more or less employed in useful labour, and endeavours to provide, as well as he can, the necessities and conveniences of life, for himself, and such of his family or tribe as are either too old, or too young, or too infirm to go hunting and fishing. Such nations, however, are so miserably poor, that, from mere want, they are frequently reduced, or at least think themselves reduced, to the necessity sometimes of directly destroying, and sometimes of abandoning their infants, their old people, and those afflicted with lingering diseases, to perish with hunger, or to be devoured by wild beasts. Among civilized and thriving nations, on the contrary, though a great number of people do not labour at all, many of whom consume the produce of ten times, frequently of a hundred times, more labour than the greater part of those who work; yet the produce of the whole labour of the society is so great, that all are often abundantly supplied and a workman, even of the lowest and poorest order, if he is frugal and industrious, may enjoy a greater share of the necessities and conveniences of life than is possible for any savage to acquire.Q.Which of the following can most reasonably be inferred from the information in the passage?

Directions: Read the Passage carefully and answer the question as follow.The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations. Accordingly, therefore, as this produce, or what is purchased with it, bears a greater or smaller proportion to the number of those who are to consume it, the nation will be better or worse supplied with all the necessaries and conveniences for which it has occasion.But this proportion must in every nation be regulated by two different circumstances: first, by the skill, dexterity, and judgment with which its labour is generally applied; and, second, by the proportion of the number of people who are employed in useful labour to that of those who are not so employed. Whatever be the soil, climate, or extent of territory of any particular nation, the abundance or scantiness of its annual supply must, in that particular situation, depend upon these two circumstances.Moreover, the abundance or scantiness of this supply seems to depend more upon the former of those two circumstances than upon the latter. Among the savage nations of hunters and fishers, every individual who is able to work is more or less employed in useful labour, and endeavours to provide, as well as he can, the necessities and conveniences of life, for himself, and such of his family or tribe as are either too old, or too young, or too infirm to go hunting and fishing. Such nations, however, are so miserably poor, that, from mere want, they are frequently reduced, or at least think themselves reduced, to the necessity sometimes of directly destroying, and sometimes of abandoning their infants, their old people, and those afflicted with lingering diseases, to perish with hunger, or to be devoured by wild beasts. Among civilized and thriving nations, on the contrary, though a great number of people do not labour at all, many of whom consume the produce of ten times, frequently of a hundred times, more labour than the greater part of those who work; yet the produce of the whole labour of the society is so great, that all are often abundantly supplied and a workman, even of the lowest and poorest order, if he is frugal and industrious, may enjoy a greater share of the necessities and conveniences of life than is possible for any savage to acquire.Q.According to the information in the passage, each of the following could be a characteristic of a savage nation EXCEPT

Directions: Read the Passage carefully and answer the question as follow.The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations. Accordingly, therefore, as this produce, or what is purchased with it, bears a greater or smaller proportion to the number of those who are to consume it, the nation will be better or worse supplied with all the necessaries and conveniences for which it has occasion.But this proportion must in every nation be regulated by two different circumstances: first, by the skill, dexterity, and judgment with which its labour is generally applied; and, second, by the proportion of the number of people who are employed in useful labour to that of those who are not so employed. Whatever be the soil, climate, or extent of territory of any particular nation, the abundance or scantiness of its annual supply must, in that particular situation, depend upon these two circumstances.Moreover, the abundance or scantiness of this supply seems to depend more upon the former of those two circumstances than upon the latter. Among the savage nations of hunters and fishers, every individual who is able to work is more or less employed in useful labour, and endeavours to provide, as well as he can, the necessities and conveniences of life, for himself, and such of his family or tribe as are either too old, or too young, or too infirm to go hunting and fishing. Such nations, however, are so miserably poor, that, from mere want, they are frequently reduced, or at least think themselves reduced, to the necessity sometimes of directly destroying, and sometimes of abandoning their infants, their old people, and those afflicted with lingering diseases, to perish with hunger, or to be devoured by wild beasts. Among civilized and thriving nations, on the contrary, though a great number of people do not labour at all, many of whom consume the produce of ten times, frequently of a hundred times, more labour than the greater part of those who work; yet the produce of the whole labour of the society is so great, that all are often abundantly supplied and a workman, even of the lowest and poorest order, if he is frugal and industrious, may enjoy a greater share of the necessities and conveniences of life than is possible for any savage to acquire.Q.According to the information in the passage, under which of these hypothetical situations will a country be most prosperous?

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A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer?
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A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer?.
Solutions for A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
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Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A discount retailer of basic household necessities employs thousands of people and pays most of them at the minimum wage rate. Yet following a federally mandated increase of the minimum wage rate that increased the retailer’s operating costs considerably, the retailer’s profits increased markedly.Q. Which of the following, if true, most helps to resolve the apparent paradox?a)Over half of the retailer’s operating costs consist of payroll expenditures; yet only a small percentage of those expenditures go to pay management salaries.b)The retailer’s customer base is made up primarily of people who earn, or who depend on the earnings of others who earn, the minimum wage.c)The retailer’s operating costs, other than wages, increased substantially after the increase in the minimum wage rate went into effect.d)When the increase in the minimum wage rate went into effect, the retailer also raised the age rate for employees who had been earning just above minimum wage.e)The majority of the retailer’s employees work as cashiers, and most cashiers are paid the minimum wage.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice GMAT tests.
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