Suppose that labour costs were the only part of the total cost of producing goods to have risen since the mid—1960s. What is the relevance of this information to the passage?

Question

Option 1: It supports the author's claim that labour demands have hurt American corporations.

Option 2: It supports the author's claim that workers' wages have made American goods uncompetitive.

Option 3: It weakens the author's claim that American corporations have had trouble retaining skilled workers.

Option 4: It weakens the author's claim that management was wrong to blame labor costs for driving up prices.

AfterBoards · Accepted Answer

The author argues management wrongly blamed labour costs, since wages are under 15% of total cost. If labour costs alone rose, that fact would lend some justification to blaming them, thereby weakening the author's claim that management was wrong to do so. Hence option D.

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