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Q no.61

Contrary to the statements of labor leaders, the central economic problem facing America today is not the distribution of wealth. It is productivity. With the productivity of U.S. industry stagnant, or even declining slightly, the economic pie is no longer growing. Labor leaders, of course, point to what they consider an unfair distribution of the slices of pie to justify their demands for further increases in wages and benefits. And in the past, when the pie was still growing, management could afford to acquiesce. No longer. Until productivity resumes its growth, there can be no justification for further increases in the compensation of workers.

Which of the following statements by a labor leader focuses on the logical weakness in the argument above?

(A) Although the economic pie is no longer growing, the portion of the pie allocated to American workers remains unjustly small.

(B) If management fails to accommodate the demands of workers, labor leaders will be forced to call strikes that will cripple the operation of industry.

(C) Although productivity is stagnant, the U.S. population is growing, so that the absolute size of the economic pie continues to grow as well.

(D) As a labor leader, I can be concerned only with the needs of working people, not with the problems faced by management.

(E) The stagnation of U.S. industry has been caused largely by factors—such as foreign competition—beyond the control of American workers.

Official Answer : A

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