Temporary-services firms supply trained workers to other companies on a temporary basis. Temporary-services firms lose business when the economy shows signs of beginning to weaken. They gain business when the economy begins to recover but often lose business again when the economy stabilizes. These firms have begun to gain business in the present weak economy. The economy therefore must be beginning to recover.
Which of the following is an assumption on which the above argument depends?
A. Temporary-services firms are more likely to regain old clients than to acquire new ones when the economy begins to recover
B. Temporary-services firms do not gain business when an already weak economy worsens
C. New companies do not often hire temporary help until they have been in business for some time
D. Companies that use workers from temporary-services firms seldom hire those workers to fill permanent positions
E. Temporary-services firms can most easily find qualified new workers when the economy is at its weakest
Solution
Passage Analysis:
| Text from Passage | Analysis |
| Temporary-services firms supply trained workers to other companies on a temporary basis. | What it says: Defines what temporary-services firms do – they provide workers to other companies for short periods What it does: Sets up the basic definition so we understand what type of business we’re talking about What it is: Author’s definition/background information |
| Temporary-services firms lose business when the economy shows signs of beginning to weaken. | What it says: These firms struggle when the economy starts going downhill What it does: Establishes the first pattern of how economic conditions affect these firms What it is: Author’s claim about economic relationshipVisualization: Economy weakening → Temp firms lose clients (fewer companies need temporary help) |
| They gain business when the economy begins to recover but often lose business again when the economy stabilizes. | What it says: These firms do better during recovery periods but struggle again once things settle down What it does: Completes the economic cycle pattern, showing these firms have a specific “sweet spot” What it is: Author’s claim about business cyclesVisualization: Economy recovering → Temp firms gain business → Economy stable → Temp firms lose business again |
| These firms have begun to gain business in the present weak economy. | What it says: Right now, even though the economy is weak, temp firms are getting more business What it does: Presents the current situation that seems to contradict the first pattern What it is: Author’s factual observation |
| The economy therefore must be beginning to recover. | What it says: Since temp firms are gaining business, the economy must be starting to get better What it does: Draws a conclusion by matching the current situation to the established pattern What it is: Author’s main conclusion |
Argument Flow:
The argument first establishes how temporary-services firms behave during different economic phases, then observes current behavior, and finally uses pattern-matching to conclude what economic phase we must be in.
Main Conclusion:
The economy must be beginning to recover.
Logical Structure:
The argument relies on the pattern that temp firms gain business during recovery periods. Since they’re gaining business now, we must be in a recovery period. This assumes the established pattern is the only explanation for their current success.
Prethinking:
Question type:
Assumption – We need to find what the argument must assume to be true for the conclusion to follow logically from the premises.
Precision of Claims
The argument makes specific claims about when temp firms gain/lose business (during weakening, recovery, and stable periods) and concludes the economy is beginning to recover based on current business gains.
Strategy
Since this is an assumption question, we need to identify ways the conclusion could be falsified while respecting the given facts. The argument assumes that if temp firms are gaining business now, it must mean we’re in a recovery phase. We need to think about what could make this reasoning fall apart – like other reasons why temp firms might be gaining business that have nothing to do with economic recovery.
Answer Choices Explained
A. Temporary-services firms are more likely to regain old clients than to acquire new ones when the economy begins to recover
‘Temporary-services firms are more likely to regain old clients than to acquire new ones when the economy begins to recover.’ This deals with the source of new business (old vs. new clients) but doesn’t affect the core logic of the argument. Whether temp firms get business from old or new clients doesn’t matter for concluding that business gains indicate economic recovery. The argument’s reasoning doesn’t depend on this distinction.
B. Temporary-services firms do not gain business when an already weak economy worsens
‘Temporary-services firms do not gain business when an already weak economy worsens.’ This is the correct assumption. The argument concludes that since temp firms are gaining business in the current weak economy, the economy must be recovering. But this reasoning only works if we assume temp firms don’t also gain business when a weak economy gets worse. If they did gain business during further economic decline, then current business gains wouldn’t necessarily signal recovery – they could signal further deterioration. This assumption is essential for the argument’s logic.
C. New companies do not often hire temporary help until they have been in business for some time
‘New companies do not often hire temporary help until they have been in business for some time.’ This focuses on the hiring practices of new companies specifically, but the argument is about overall patterns of temp service demand during different economic phases. Whether new companies specifically use temp services doesn’t affect the core reasoning about what current business gains indicate about economic direction.
D. Companies that use workers from temporary-services firms seldom hire those workers to fill permanent positions
‘Companies that use workers from temporary-services firms seldom hire those workers to fill permanent positions.’ This addresses what happens to individual temp workers after their assignments, but it’s irrelevant to the argument’s logic about business patterns indicating economic phases. The movement of workers from temp to permanent positions doesn’t affect whether business gains signal economic recovery.
E. Temporary-services firms can most easily find qualified new workers when the economy is at its weakest
‘Temporary-services firms can most easily find qualified new workers when the economy is at its weakest.’ This deals with the supply side (finding workers) rather than the demand side (client business) that drives the argument’s logic. The ease of finding workers doesn’t affect whether gaining client business indicates economic recovery versus further decline.
