Current farm policy is institutionalized penalization of consumers. It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year.

Which of the following statements, if true, would provide support for the author’s claims above?

I. Farm subsidies amount to roughly $20 billion a year in federal payouts and $12 billion more in higher food prices.
II. According to a study by the Department of Agriculture, each $1 of benefits provided to farmers for ethanol production costs consumers and taxpayers $4.
III. The average full-time farmers have an average net worth of over $300,000.

(A) I only
(B) II only
(C) III only
(D) I and II only
(E) I, II, and III

Current farm policy is institutionalized penalization of consumers. It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year.

Which of the following statements, if true, would provide support for the author’s claims above?

Explanation:
----------------------
I. Farm subsidies amount to roughly $20 billion a year in federal payouts and $12 billion more in higher food prices. ---> Correct. This option just looks like a restatement of the premise (the only difference is that they have added numbers instead of words).

II. According to a study by the Department of Agriculture, each $1 of benefits provided to farmers for ethanol production costs consumers and taxpayers $4. ---> Clearly provides support for author's claim. Benefit ($1) provided to the farmers is not going to come from money plant; it will come from the taxpayers. Also, increase in production cost will be reflected in increased food prices, which will affect consumers.

III. The average full-time farmers have an average net worth of over $300,000. ---> Irrelevant. How does it show that the farm policy is penalizing consumers and taxpayers?

(A) I only
(B) II only
(C) III only
(D) I and II only
(E) I, II, and III
----------------------

Clearly, option D.

Hope that helps.


Regards,
Technext
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Very confusing question. Initially, I thought options I and II are correct. But, I will go only with I because, II does not support the fact that each year, the policy costs billions of dollars to tax payers.

What's the source of this question?

consider the second given statement :

According to a study by the Department of Agriculture, each $1 of benefits provided to farmers for ethanol production costs consumers and taxpayers $4.

How would one deduce a multiple of billion for the costs? this statement only talks about the proportions.

Without using outside knowledge that ethanol costs drive up food costs, I don't see how II increases food costs for low/middle income people.

Current farm policy is institutionalized penalization of consumers. It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year.
Which of the following statements, if true, would provide support for the author’s claims above?


I. Farm subsidies amount to roughly $20 billion a year in federal payouts and $12 billion more in higher food prices. affects consumer since food prices increases due to farm subsidies
II. According to a study by the Department of Agriculture, each $1 of benefits provided to farmers for ethanol production costs consumers and taxpayers $4.
benefits given to farmers affects taxpayers
III. The average full-time farmers have an average net worth of over $300,000. networth of farmers doesn't affect tax payers and consumers so irrelavant

only option I and II support authors claim

so my choice is D

Clearly D as III is completely irrelevant.

hw would farm subsidies increase food prices and tat too for middle- and low-income families and costs the taxpayer billions of dollars a year. It might cost taxpayers billions of dollars. bt fud price increase - i couldnt gt tat. plz explain?

Thanks guys, but i still agree with sanjay_gmat. how can u know it will cost millions?

thanks.
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can you please post the source of this question? i don't see anything in statement 2 that supports costing the taxpayer billions of dollars per year.