Historically, Relations Between Workers and Employers in the United States have Often Been Characterized GMAT Reading Comprehension

Reading Passage Question

Historically, relations between workers and employers in the United States have often been characterized by the employment-at-will doctrine, according to which the duration of employment is determined by the employer and the grounds for termination are limited only by the provisions of contracts and specific statutes. Many state courts and legislatures have reevaluated this doctrine and have modified it by expanding the concept of wrongful termination, thereby increasing employer liability. Some economic theorists suggest that such changes tend to reduce employment in states that enact them, because protecting workers against wrongful termination raises the cost of labor to employers: firms will tend to spend more time and money screening potential employees, be reluctant to terminate less-productive workers, and incur greater legal expenses. In a study that took into account differences among states, researchers Dertouzos and Karoly concluded that states with wrongful-termination laws experienced a two percent to five percent drop in their employment rate as a result of adopting these laws. They also found that the impact on employment appears to be smallest in manufacturing, where unions have already institutionalized similar protection, and in small firms, perhaps because those firms' lesser ability to pay damages makes it less profitable for employees to file wrongful-termination lawsuits against them.

“Historically, relations between workers and employers in the United States have often been characterized.”- is a GMAT reading comprehension passage with answers. Candidates need a strong knowledge of English GMAT reading comprehension.

This GMAT Reading Comprehension consists of 3 comprehension questions. The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analyzing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.

Solution and Explanation

1. The passage suggests which of the following regarding wrongful-termination lawsuits?

A)States that do not implement wrongful-termination laws will probably see an increase in wrongful-termination lawsuits.
B)It is less profitable to file wrongful-termination lawsuits against unionized companies than against companies without unions.
C)A wrongful-termination lawsuit is less costly to a company than continuing the employment of an unproductive worker.
D)Obtaining financial compensation is an important motivation for filing wrongful-termination lawsuits.
E)Those who file wrongful-termination lawsuits are likely to be awarded larger settlements under the employment-at-will doctrine than under wrongful-termination laws.

2. The primary purpose of the passage is to

A)explore the legal consequences of terminating a worker's employment
B)define the employment-at-will doctrine and chronicle its historical evolution
C)examine reasons underlying a trend away from the employment-at-will doctrine
D)advocate increased protection for workers against wrongful termination by employers
E)discuss a possible drawback of state laws intended to protect workers against wrongful termination

3. Which of the following best describes the organization of the passage?

A)An idea is proposed and arguments against it are examined and then refuted.
B)A doctrine is defined and reasons for favoring its adoption are listed.
C)A doctrine is criticized, several possible alternatives are outlined, and one is endorsed.
D)An idea is described, its antithesis is presented, and a synthesis of the two is proposed.
E)A doctrine is defined, a revision to it is described, and the implications of that revision are discussed.

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