[SAT] Cross-Text Connections Trap Dissection | AceThePrep

SATReading and WritingCross-Text Connections

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Text 1 Classical economic models predict that imposing a binding minimum wage above the market-clearing equilibrium wage inevitably reduces overall employment. In a competitive labor market, employers respond to artificially elevated labor costs by substituting capital for labor—automating routine positions—or by curtailing aggregate hiring, disproportionately harming low-skilled and teenage workers.

Text 2 Economists David Card and Alan Krueger analyzed employment changes across fast-food restaurants in New Jersey and Pennsylvania following New Jersey's 1992 minimum wage hike. Contrary to competitive market assumptions, they found that fast-food employment in New Jersey actually expanded slightly relative to adjacent Pennsylvania stores. Card and Krueger suggested that low-wage labor markets often exhibit monopsonistic competition, where employers possess market wage-setting power, meaning moderate minimum wage increases can reduce costly employee turnover and expand total labor supply without inducing job losses.

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How would the authors of Text 2 most likely view the assumption in Text 1 regarding 'competitive labor markets'?

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Practice More SAT Cross-Text Connections Questions

Take the interactive diagnostic drill with real-time distractor analysis, Desmos calculator, and SM-2 spaced repetition.

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Practice More SAT Cross-Text Connections Questions

More Cross-Text Connections Questions in SAT

Practice More SAT Cross-Text Connections Questions

More Cross-Text Connections Questions in SAT