VERBAL REASONING

'As part of a government strategy The National Minimum Wage has been introduced in order to provide employees with civilized minimum standards and equality within the workplace. It applies to nearly all workers, and sets minimum hourly rates which must not decrease. The legislation also aids many businesses, as it allows them to compete with each other on the basis of their products and their services rather than on low prices which are primarily based on low rates of pay. The independent low rates commission have recommended the following: From October 2006, the National Minimum Wage increased for almost all employees (above compulsory school leaving age): For employees aged 22 years and over increased to 5.35 from 5.06 per an hour. Those between the ages of 18 and 21 years it increased to 4.45 from 4.25 per an hour, and finally for employees between the ages of 16 and 17 years it increased to 3.30 from 3.00 per hour.' A From October 2007 the National minimum wage for employees under 17 but above the compulsory school leaving age will be 3.30 per a hour. B Employees aged 18 and over will not have as much of an increase in their minimum wage in October 2007, as compared to employees aged 17 and under. C The National Minimum Wage applies to all employees. D Businesses used to compete by selling their products at a cheaper rate, and paying employees low rates of pay. Justification of Answers A: From October 2007 the National Minimum Wage for employees under 17 but above compulsory school leaving age will be 3.30 per a hour. Answer: Cant tell. Although there is information given about the minimum wage for those under the age of 17, we are not given information about the compulsory school leaving age (even though you may personally know what the compulsory leaving age is). Therefore we are unable to conclude the above statement, as there is insufficient information. B: Employees aged 18 and over will not have as much of an increase in their minimum wage in October 2007, as compared to employees aged 17 and under. Answer: True. The minimum wage for employees between the ages of 16 and 17 years will increase from 3.00 to 3.30 per an hour, which is an increase of 0.30. The minimum wage for employees aged 18 to 21 years will increase from 4.25 to 4.45 per hour, which is an increase of 0.20. The minimum wage for employees over the age of 22 will increase from 5.06 to 5.35 per an hour. This is an increase of 0.29. Although the minimum wage for those below the age of 17 is less then the other two groups, this group has in actual fact the highest increase (0.30) when compared to those who are 18 and over. C: The National Minimum Wage applies to all employees. Answer: False. In the passage it is stated that the minimum wage legislation applies to nearly all employees, therefore this means that it applies to almost all employees. Based on this reason the above statement is false D: Businesses used to compete by selling their products at a cheaper rate and paying employees low rates of pay. Answer: Cant tell. In the passage it states a hypothetical example. The passage contains no information regarding any evidence of what businesses used to do in the past to compete with each other. This means that there is not enough information to conclude the above statement.