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!
[[snippet]]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.
[[snippet]]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.
[[snippet]]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.
[[snippet]]According to the passage, workers do not see a connection between their wages and the profits of the firm.
Incorrect.
[[snippet]]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.
In industry X, management cut wages by 20% even after profits increased by the same amount.
