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Last year, the US government spent $500B on enhancing employment, leading to creation of 10M jobs. An average job in US saves the government $10K in social security benefits and provides $15K in taxes. Based on this, the government claims that the payback on the investment would be less than 3 years.
The government’s claim is based on which of the following assumption?
  • a)
    A significant number of the jobs that have been created are comparable to or better than an average job.
  • b)
    Most of the jobs that have been created through this program will last 5 years or more.
  • c)
    People employed through this program are doing work that will help the Gross exports of the nation.
  • d)
    The excessive money spent to create these jobs will not raise the inflation in the country.
  • e)
    All jobs are created equal with similar pay and benefits.
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Last year, the US government spent $500B on enhancing employment, lead...
To evaluate the government's claim about the payback on the investment being less than 3 years, let's consider the information provided:
  1. The government spent $500 billion on enhancing employment, resulting in the creation of 10 million jobs.
  2. An average job in the US saves the government $10,000 in social security benefits and provides $15,000 in taxes.
The government's claim suggests that the cumulative benefits from these jobs will exceed the initial investment of $500 billion within a timeframe of less than 3 years. This claim is based on the following reasoning:
If a significant number of the jobs created are comparable to or better than an average job, it means that these jobs would generate similar or higher benefits to what is described as an average job. In this scenario, the average job saves the government $10,000 in social security benefits and provides $15,000 in taxes.
Therefore, if a significant portion of the 10 million jobs created can be assumed to have similar benefits as the average job, the cumulative benefits from these jobs would be substantial. Consequently, it is possible for the cumulative benefits to exceed the initial investment of $500 billion within a period of less than 3 years.
This assumption is critical because if a majority of the jobs created do not meet the criteria of being comparable to or better than an average job, their benefits may be lower than those used in the government's calculations. In such a case, the payback period may be longer than 3 years or may not be achieved at all.
Therefore, the government's claim about the payback on the investment being less than 3 years is based on the assumption that a significant number of the jobs created are comparable to or better than an average job.
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Most Upvoted Answer
Last year, the US government spent $500B on enhancing employment, lead...
To evaluate the government's claim about the payback on the investment being less than 3 years, let's consider the information provided:
  1. The government spent $500 billion on enhancing employment, resulting in the creation of 10 million jobs.
  2. An average job in the US saves the government $10,000 in social security benefits and provides $15,000 in taxes.
The government's claim suggests that the cumulative benefits from these jobs will exceed the initial investment of $500 billion within a timeframe of less than 3 years. This claim is based on the following reasoning:
If a significant number of the jobs created are comparable to or better than an average job, it means that these jobs would generate similar or higher benefits to what is described as an average job. In this scenario, the average job saves the government $10,000 in social security benefits and provides $15,000 in taxes.
Therefore, if a significant portion of the 10 million jobs created can be assumed to have similar benefits as the average job, the cumulative benefits from these jobs would be substantial. Consequently, it is possible for the cumulative benefits to exceed the initial investment of $500 billion within a period of less than 3 years.
This assumption is critical because if a majority of the jobs created do not meet the criteria of being comparable to or better than an average job, their benefits may be lower than those used in the government's calculations. In such a case, the payback period may be longer than 3 years or may not be achieved at all.
Therefore, the government's claim about the payback on the investment being less than 3 years is based on the assumption that a significant number of the jobs created are comparable to or better than an average job.
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Community Answer
Last year, the US government spent $500B on enhancing employment, lead...
Calculates the payback period by dividing the total investment by the annual savings generated.

Total investment = $500B
Annual savings = 10M jobs * ($10K social security benefits + $15K taxes) = $250B

Payback period = Total investment / Annual savings = $500B / $250B = 2 years

Therefore, the government claims that the payback on the investment would be less than 3 years.
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Comparable worth, as a standard applied to eliminate inequities in pay, insists that the values of certain tasks performed in dissimilar jobs can be compared. In the last decade, this approach has become a critical social policy issue, as large numbers of private-sector firms and industries as well as federal, state, and local governmental entities have adopted comparable worth policies or begun to consider doing so.This widespread institutional awareness of comparable worth indicates increased public awareness that pay inequities—that is, situations in which pay is not "fair" because it does not reflect the true value of a job—exist in the labor market. However, the question still remains: have the gains already made in pay equity under comparable worth principles been of a precedent-setting nature or are they mostly transitory, a function of concessions made by employers to mislead female employees into believing that they have made long-term pay equity gains?Comparable worth pay adjustments are indeed precedent-setting. Because of the principles driving them, other mandates that can be applied to reduce or eliminate unjustified pay gaps between male and female workers have not remedied perceived pay inequities satisfactorily for the litigants in cases in which men and women hold different jobs. But whenever comparable worth principles are applied to pay schedules, perceived unjustified pay differences are eliminated. In this sense then, comparable worth is more comprehensive than other mandates, such as the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. Neither compares tasks in dissimilar jobs (that is, jobs across occupational categories) in an effort to determine whether or not what is necessary to perform these tasks—know-how, problem-solving, and accountability—can be quantified in terms of its dollar value to the employer. Comparable worth, on the other hand, takes as its premise that certain tasks in dissimilar jobs may require a similar amount of training, effort, and skill; may carry similar responsibility; may be carried on in an environment having a similar impact upon the worker; and may have a similar dollar value to the employer.Which of the following best describes an application of the principles of comparable worth as they are described in the passage?

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Last year, the US government spent $500B on enhancing employment, leading to creation of 10M jobs. An average job in US saves the government $10K in social security benefits and provides $15K in taxes. Based on this, the government claims that the payback on the investment would be less than 3 years.The government’s claim is based on which of the following assumption?a)A significant number of the jobs that have been created are comparable to or better than an average job.b)Most of the jobs that have been created through this program will last 5 years or more.c)People employed through this program are doing work that will help the Gross exports of the nation.d)The excessive money spent to create these jobs will not raise the inflation in the country.e)All jobs are created equal with similar pay and benefits.Correct answer is option 'A'. Can you explain this answer?
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Last year, the US government spent $500B on enhancing employment, leading to creation of 10M jobs. An average job in US saves the government $10K in social security benefits and provides $15K in taxes. Based on this, the government claims that the payback on the investment would be less than 3 years.The government’s claim is based on which of the following assumption?a)A significant number of the jobs that have been created are comparable to or better than an average job.b)Most of the jobs that have been created through this program will last 5 years or more.c)People employed through this program are doing work that will help the Gross exports of the nation.d)The excessive money spent to create these jobs will not raise the inflation in the country.e)All jobs are created equal with similar pay and benefits.Correct answer is option 'A'. 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 Last year, the US government spent $500B on enhancing employment, leading to creation of 10M jobs. An average job in US saves the government $10K in social security benefits and provides $15K in taxes. Based on this, the government claims that the payback on the investment would be less than 3 years.The government’s claim is based on which of the following assumption?a)A significant number of the jobs that have been created are comparable to or better than an average job.b)Most of the jobs that have been created through this program will last 5 years or more.c)People employed through this program are doing work that will help the Gross exports of the nation.d)The excessive money spent to create these jobs will not raise the inflation in the country.e)All jobs are created equal with similar pay and benefits.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Last year, the US government spent $500B on enhancing employment, leading to creation of 10M jobs. An average job in US saves the government $10K in social security benefits and provides $15K in taxes. Based on this, the government claims that the payback on the investment would be less than 3 years.The government’s claim is based on which of the following assumption?a)A significant number of the jobs that have been created are comparable to or better than an average job.b)Most of the jobs that have been created through this program will last 5 years or more.c)People employed through this program are doing work that will help the Gross exports of the nation.d)The excessive money spent to create these jobs will not raise the inflation in the country.e)All jobs are created equal with similar pay and benefits.Correct answer is option 'A'. Can you explain this answer?.
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