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Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.
Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?
Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?
- a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.
- b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.
- c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.
- d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.
- e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Firms adopting “profit-related-pay” (PRP) contracts pay wa...
According to choice D, many firms with PRP contracts also have modernized equipment. Since the cause of their improved productivity might be the modernized equipment, not the PRP contracts, this weakens the argument, so D is the best answer.
Choice A does not weaken the argument: it is merely more evidence of the sort already being used. Choice B is incorrect because it is a natural consequence of increased worker productivity if other costs remain stable. Choice C is incorrect because it explains why introducing PRP contracts is difficult, but says nothing about the results of doing so. Choice E is incorrect because it is not implausible that workers’ pay should roughly correspond to their productivity.
Choice A does not weaken the argument: it is merely more evidence of the sort already being used. Choice B is incorrect because it is a natural consequence of increased worker productivity if other costs remain stable. Choice C is incorrect because it explains why introducing PRP contracts is difficult, but says nothing about the results of doing so. Choice E is incorrect because it is not implausible that workers’ pay should roughly correspond to their productivity.
Most Upvoted Answer
Firms adopting “profit-related-pay” (PRP) contracts pay wa...
Understanding the Argument
The argument suggests that PRP contracts enhance worker productivity, illustrated by a 13% productivity increase in the metalworking industry. To weaken this conclusion, we need evidence that challenges the direct link between PRP contracts and productivity.
Why Option D Weakens the Argument
Option D states that many firms in the metalworking industry have modernized production equipment in the last five years, coinciding with the introduction of PRP contracts. This information is critical because:
- Alternative Explanation: The productivity increase could be attributed to the modernization of production equipment rather than the PRP contracts themselves. If firms are investing in new technology, it’s plausible that this investment is the primary driver of increased productivity.
- Confounding Factors: The simultaneous implementation of PRP contracts and equipment upgrades creates a confounding factor. Without isolating the effects of each change, it’s difficult to conclude that PRP contracts are the sole reason for higher productivity.
- Implications for Future Studies: If future studies show that firms with both modern equipment and PRP contracts experience similar productivity gains, it becomes challenging to establish a causal relationship between PRP contracts and productivity.
Conclusion
In summary, option D introduces an alternative explanation for the observed productivity increase, thereby weakening the assertion that PRP contracts are the primary cause of enhanced worker performance in the metalworking industry. This highlights the importance of considering all variables when evaluating the effectiveness of compensation strategies.
The argument suggests that PRP contracts enhance worker productivity, illustrated by a 13% productivity increase in the metalworking industry. To weaken this conclusion, we need evidence that challenges the direct link between PRP contracts and productivity.
Why Option D Weakens the Argument
Option D states that many firms in the metalworking industry have modernized production equipment in the last five years, coinciding with the introduction of PRP contracts. This information is critical because:
- Alternative Explanation: The productivity increase could be attributed to the modernization of production equipment rather than the PRP contracts themselves. If firms are investing in new technology, it’s plausible that this investment is the primary driver of increased productivity.
- Confounding Factors: The simultaneous implementation of PRP contracts and equipment upgrades creates a confounding factor. Without isolating the effects of each change, it’s difficult to conclude that PRP contracts are the sole reason for higher productivity.
- Implications for Future Studies: If future studies show that firms with both modern equipment and PRP contracts experience similar productivity gains, it becomes challenging to establish a causal relationship between PRP contracts and productivity.
Conclusion
In summary, option D introduces an alternative explanation for the observed productivity increase, thereby weakening the assertion that PRP contracts are the primary cause of enhanced worker performance in the metalworking industry. This highlights the importance of considering all variables when evaluating the effectiveness of compensation strategies.
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Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer?.
Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
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Here you can find the meaning of Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Firms adopting “profit-related-pay” (PRP) contracts pay wages at levels that vary with the firm’s profits. In the metalworking industry last year, firms with PRP contracts in place showed productivity per worker on average 13 percent higher than that of their competitors who used more traditional contracts.Q. If, on the basis of the evidence above, it is argued that PRP contracts increase worker productivity, which of the following, if true, would most seriously weaken that argument?a)Results similar to those cited for the metal-working industry have been found in other industries where PRP contracts are used.b)Under PRP contracts costs other than labor costs, such as plant, machinery, and energy, make up an increased proportion of the total cost of each unit of output.c)Because introducing PRP contracts greatly changes individual workers’ relationships to the firm, negotiating the introduction of PRP contracts in complex and time consuming.d)Many firms in the metalworking industry have modernized production equipment in the last five years, and most of these introduced PRP contracts at the same time.e)In firms in the metalworking industry where PRP contracts are in place, the average take-home pay is 15 percent higher than it is in those firms where workers have more traditional contracts.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
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