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Question #19: Resolve. The correct answer choice is (B).

The stimulus describes an apparent paradox. On one hand, the average hourly wage for full-time jobs has increased in each region of a given country. Over the same period of time, however, the average hourly wage for full-time jobs in the country as a whole has decreased. The question asks us to explain why. The key to this apparent paradox can be found in the first sentence: the average hourly wages vary considerably between different regions! If they do, then it is entirely possible that all regions saw an increase in their average hourly wages, but that enough people moved from regions with high-paying jobs to regions with low-paying jobs to drive the overall average down. Consider the following example:

In 2015:
  • Region A has 100 jobs that pay $10/hr
  • Region B has 400 jobs that pay $20/hr
  • Region C has 500 jobs that pay $40/hr
Overall, the average wage in 2015 for the country as a whole stands at $29/hr.

Now, let’s imagine that in each of these regions, the average wages went up:

In 2016:
  • Region A has 500 jobs that pay $15/hr
  • Region B has 400 jobs that pay $25/hr
  • Region C has 100 jobs that pay $45/hr
Despite the wage increases in each region, if enough people relocated from Region C to Region A, the overall wage average for the country as a whole goes down to $22/hr.

This question tests your understanding of statistical measurements, such as averages. While understanding the problem ahead of time would have been incredibly helpful, answering the question by the process of elimination could also be an effective—albeit less efficient—fallback option.

Answer choice (A): The fact that the average hourly wage has been decreasing for awhile tells us nothing about why it decreased last year, especially given the average wage increases seen across all regions.

Answer choice (B): This is the correct answer choice. See explanation above.

Answer choice (C): Unemployment has nothing to do with the observed discrepancy in average wages. The author cares about those who have jobs, not about those who do not.

Answer choice (D): How quickly the average hourly wage for full-time jobs increased in different regions is irrelevant.

Answer choice (E): Regardless of which sectors saw an increase in their average wages and which sectors did not, the fact remains that all regions saw an increase. This is still at odds with the observation that the country as a whole saw a decrease in average hourly wages for full-time jobs.

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