|
Author |
Message |
|
TAGS:
|
|
|
Senior Manager
Joined: 10 Mar 2008
Posts: 378
Followers: 3
Kudos [?]:
18
[0], given: 0
|
Crops can be traded on the futures market before they are [#permalink]
 18 Jul 2008, 02:16
Question Stats:
100% (01:00) correct
0% (00:00) wrong based on 3 sessions
Crops can be traded on the futures market before they are harvested. If a poor corn harvest is predicted, prices
of corn futures rise; if a bountiful corn harvest is predicted, prices of corn futures fall. This morning meteorologists
are predicting much-needed rain for the corn-growing region starting tomorrow. Therefore, since adequate moisture
is essential for the current crop’s survival, prices of corn futures will fall sharply today.
Which of the following, if true, most weakens the argument above?
(A) Corn that does not receive adequate moisture during its critical pollination stage will not produce a
bountiful harvest.
(B) Futures prices for corn have been fluctuating more dramatically this season than last season.
(C) The rain that meteorologists predicted for tomorrow is expected to extend well beyond the corn-growing
region.
(D) Agriculture experts announced today that a disease that has devastated some of the corn crop will spread
widely before the end of the growing season.
(E) Most people who trade in corn futures rarely take physical possession of the corn they trade.
|
|
|
|
|
|
|
Senior Manager
Joined: 14 Mar 2007
Posts: 320
Location: Hungary
Followers: 1
Kudos [?]:
16
[0], given: 3
|
I think D is the answer.
|
|
|
|
|
|
SVP
Joined: 28 Dec 2005
Posts: 1612
Followers: 1
Kudos [?]:
53
[0], given: 2
|
stuck btwn A and D , but chose A
|
|
|
|
|
|
SVP
Joined: 30 Apr 2008
Posts: 1900
Location: Oklahoma City
Schools: Hard Knocks
Followers: 25
Kudos [?]:
339
[0], given: 32
|
D vksunder wrote: Crops can be traded on the futures market before they are harvested. If a poor corn harvest is predicted, prices
of corn futures rise; if a bountiful corn harvest is predicted, prices of corn futures fall. This morning meteorologists
are predicting much-needed rain for the corn-growing region starting tomorrow. Therefore, since adequate moisture
is essential for the current crop’s survival, prices of corn futures will fall sharply today.
Which of the following, if true, most weakens the argument above?
(A) Corn that does not receive adequate moisture during its critical pollination stage will not produce a bountiful harvest.
Actually seems to strengthen the stem even though we don't know which growth stage the corn is currently in. This means it is also out of scope.
(B) Futures prices for corn have been fluctuating more dramatically this season than last season.
This has nothing to do with supporting or refuting the conclusion in the stem that prices will fall.
(C) The rain that meteorologists predicted for tomorrow is expected to extend well beyond the corn-growing region.
It doesn't matter if the rain goes beyond the corn-growing area because we need only that which affects the corn growth. Out of Scope.
(D) Agriculture experts announced today that a disease that has devastated some of the corn crop will spread widely before the end of the growing season.
This gives us a reason the prices will rise (disease kills crop, cuts supply, demand remains) even though the rain appears to be something that will make a good harvest and prices should fall.
(E) Most people who trade in corn futures rarely take physical possession of the corn they trade.
So?
_________________
------------------------------------
J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.
Find out what's new at GMAT Club - latest features and updates
|
|
|
|
|
|
Manager
Joined: 28 Sep 2011
Posts: 206
Followers: 1
Kudos [?]:
14
[0], given: 5
|
Re: Crops can be traded on the futures market before they are [#permalink]
23 Mar 2012, 16:03
I have chosen D as the answer choice:
The conclusion is: [highlight]Prices of corn futures will fall sharply today.[/highlight]
A. This answer choice describes when the best time for rain is. However, it does not describe whether the prices will rise or fall today. Therefore, this is an incorrect answer.
B. Although prices have been fluctuating, this answer choice does not help us understand what will happen to corn futures today.
C. We are only concerned with rain in the corn growing region.
D. This is the correct answer. This statement explains why the prices of corn futures may increase - a disease could counteract any benefit that the rain may give.
E. This is irrelevant.
|
|
|
|
|
|
|
Re: Crops can be traded on the futures market before they are
[#permalink]
23 Mar 2012, 16:03
|
|
|
|
|
|
|
|
|
|
Moderators:
metallicafan, rajeevrks27, souvik101990, PTK, MacFauz, noboru, kissthegmat, carcass, willigetmylifeback, mikemcgarry, doe007, Vercules, Legendaddy, tuanquang269, RaviChandra, Marcab, Narenn
|
close
