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Reading Comprehension: Application Questions

Which of the following, if true, would best support the author's view regarding the connection between profits and wages?

Good job!

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This study shows that workers demand higher wages when profits have decreased and when prices are higher. This strengthens the author's view that workers fight for their wages based on a livable income rather than the firm's profits.

Incorrect.

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The passage states that workers care more about livable income, or cost of living, than their firm's profits, so they are more likely to struggle for wage when the cost of living rises. This answer choice, if true, would show the opposite.

Incorrect.

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The passage tells us that management presumes that profits and wages are connected. The fact that management cut wages when profits increase would disprove this contention.

Incorrect.

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According to the passage, workers do not see a connection between their wages and the profits of the firm.

Incorrect.

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The passage tells us that management links profits to wages, not the cost of living. Moreover, it is workers who are concerned about the cost of living, not management.

According to a recent study, workers are more likely to strike in demand for higher wages in economies with declining profit rates and higher prices.
When the cost of living rises, management will increase wages accordingly.
According to opinion polls, a large majority of workers would agree to a pay cut to stop their firm from going bankrupt.

In industry X, management cut wages by 20% even after profits increased by the same amount.

When the cost of living rises, fewer wage struggles occur in firms with higher profit rates.