Find all School-related info fast with the new School-Specific MBA Forum

It is currently 25 Oct 2014, 06:35

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Farmers in developing countries claim that the United States

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
User avatar
Joined: 02 Jan 2008
Posts: 194
Location: Toronto
Followers: 1

Kudos [?]: 29 [0], given: 0

Farmers in developing countries claim that the United States [#permalink] New post 19 Mar 2008, 00:38
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (03:46) correct 0% (00:00) wrong based on 1 sessions
Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.

Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

A Wheat that is not processed for consumption is often used for certain industrial applications.
B Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

D Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

E The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.
SVP
SVP
avatar
Joined: 04 May 2006
Posts: 1941
Schools: CBS, Kellogg
Followers: 18

Kudos [?]: 323 [0], given: 1

Premium Member
Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 01:15
maverick101 wrote:
Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.

Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

A Wheat that is not processed for consumption is often used for certain industrial applications.
B Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

D Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

E The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.


I think E, correct me if I am wrong!
E means that NO SUBSIDIES, THE PRICE IS STILL LOW, EVEN LOWER THAN..."
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Manager
Manager
avatar
Joined: 11 Apr 2007
Posts: 144
Followers: 1

Kudos [?]: 19 [0], given: 0

Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 06:27
Yes I think it's E for the same reason. To weaken the claim that without subsidies the price will rise, we have to show that without the subsidies the price will not rise or is lower. That's exactely what E says.
Expert Post
CEO
CEO
User avatar
Joined: 17 Nov 2007
Posts: 3573
Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Followers: 367

Kudos [?]: 1856 [0], given: 359

GMAT ToolKit User Premium Member
Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 06:45
Expert's post
D

...Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.

Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

We need to find a factor that decrease the price of wheat.

D. Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output. - more wheat - less price.

Guys, can you explain how we can compare in E the price of sorghum and the price of wheat??? If you exchange sorghum for computers, for instance, the option E is definitely out of scope. Moreover, we have lower/higher rather than decrease/increase in E.
_________________

HOT! GMAT TOOLKIT 2 (iOS) / GMAT TOOLKIT (Android) - The OFFICIAL GMAT CLUB PREP APP, a must-have app especially if you aim at 700+ | PrepGame

CEO
CEO
User avatar
Joined: 29 Aug 2007
Posts: 2500
Followers: 54

Kudos [?]: 512 [0], given: 19

Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 08:46
maverick101 wrote:
Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.

Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

A Wheat that is not processed for consumption is often used for certain industrial applications.
B Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

D Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

E The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.


I guess D makes sense. they are arguing that the low price is because of over production that is because of subsidies.
So D directly says the same thing.
_________________

Verbal: new-to-the-verbal-forum-please-read-this-first-77546.html
Math: new-to-the-math-forum-please-read-this-first-77764.html
Gmat: everything-you-need-to-prepare-for-the-gmat-revised-77983.html


GT

SVP
SVP
avatar
Joined: 28 Dec 2005
Posts: 1593
Followers: 2

Kudos [?]: 75 [0], given: 2

Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 16:46
i went for D
Director
Director
avatar
Joined: 01 May 2007
Posts: 795
Followers: 1

Kudos [?]: 79 [0], given: 0

Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 19:03
D for me as well.
SVP
SVP
avatar
Joined: 04 May 2006
Posts: 1941
Schools: CBS, Kellogg
Followers: 18

Kudos [?]: 323 [0], given: 1

Premium Member
Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 19:31
GMAT TIGER wrote:
maverick101 wrote:
Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.

Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

A Wheat that is not processed for consumption is often used for certain industrial applications.
B Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

D Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

E The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.


I guess D makes sense. they are arguing that the low price is because of over production that is because of subsidies.
So D directly says the same thing.


@Gmattiger, I will attack your reasoning to show that D strengthens the claim rather than weakens it. hi hi :lol:

Your reasoning can be restated as: susidies --> over production --> low price
From this chain, you can strenthen it by showing that either over production --> low price , or susidies ---> low price. :

@Walker, It is Ok as long as you can show that NO SUBSIDIES, THE PRICE STILL LOW.
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Expert Post
CEO
CEO
User avatar
Joined: 17 Nov 2007
Posts: 3573
Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Followers: 367

Kudos [?]: 1856 [0], given: 359

GMAT ToolKit User Premium Member
Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 20:46
Expert's post
sondenso wrote:
@Walker, It is Ok as long as you can show that NO SUBSIDIES, THE PRICE STILL LOW.


The passage: no [subsidies] --> (Assumption: all other suppliers will keep their supply at constant rate and demand is constant) ---> decline [supply] --> rise [price]

D actually weakens the assumption.
_________________

HOT! GMAT TOOLKIT 2 (iOS) / GMAT TOOLKIT (Android) - The OFFICIAL GMAT CLUB PREP APP, a must-have app especially if you aim at 700+ | PrepGame

CEO
CEO
User avatar
Joined: 29 Aug 2007
Posts: 2500
Followers: 54

Kudos [?]: 512 [0], given: 19

Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 20:56
sondenso wrote:
GMAT TIGER wrote:
maverick101 wrote:
Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.

Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

A Wheat that is not processed for consumption is often used for certain industrial applications.
B Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

D Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

E The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.


I guess D makes sense. they are arguing that the low price is because of over production that is because of subsidies.
So D directly says the same thing.


@Gmattiger, I will attack your reasoning to show that D strengthens the claim rather than weakens it. hi hi :lol:

Your reasoning can be restated as: susidies --> over production --> low price
From this chain, you can strenthen it by showing that either over production --> low price , or susidies ---> low price. :

@Walker, It is Ok as long as you can show that NO SUBSIDIES, THE PRICE STILL LOW.


i do not understand how does that weakens.

overproduction in the US - world wide wheat price low.

if US stops subsidies - US production reduces but the reduction is complimented by Canadian and Russian production - so the world-wide supply of wheat remains unaffected - then no increase in the wheat price.


C and D are traps because they are comparing the prices --- so they are out of scope.
_________________

Verbal: new-to-the-verbal-forum-please-read-this-first-77546.html
Math: new-to-the-math-forum-please-read-this-first-77764.html
Gmat: everything-you-need-to-prepare-for-the-gmat-revised-77983.html


GT

Expert Post
CEO
CEO
User avatar
Joined: 17 Nov 2007
Posts: 3573
Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Followers: 367

Kudos [?]: 1856 [0], given: 359

GMAT ToolKit User Premium Member
Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 21:21
Expert's post
GMAT TIGER wrote:
C and D are traps because they are comparing the prices --- so they are out of scope.


I guess you'd like to say "C and E" :)
_________________

HOT! GMAT TOOLKIT 2 (iOS) / GMAT TOOLKIT (Android) - The OFFICIAL GMAT CLUB PREP APP, a must-have app especially if you aim at 700+ | PrepGame

CEO
CEO
User avatar
Joined: 29 Aug 2007
Posts: 2500
Followers: 54

Kudos [?]: 512 [0], given: 19

Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 22:37
walker wrote:
GMAT TIGER wrote:
C and D are traps because they are comparing the prices --- so they are out of scope.


I guess you'd like to say "C and E" :)


oh yeah obviously

thanks... :cool
_________________

Verbal: new-to-the-verbal-forum-please-read-this-first-77546.html
Math: new-to-the-math-forum-please-read-this-first-77764.html
Gmat: everything-you-need-to-prepare-for-the-gmat-revised-77983.html


GT

SVP
SVP
avatar
Joined: 04 May 2006
Posts: 1941
Schools: CBS, Kellogg
Followers: 18

Kudos [?]: 323 [0], given: 1

Premium Member
Re: CR - Wheat Subsidy [#permalink] New post 19 Mar 2008, 23:37
@Gmattiger and Walker, thanks all of you. Although OA is still not be shown, I think I am convinced! :roll:

C.U in the next CRs
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Manager
Manager
User avatar
Joined: 02 Jan 2008
Posts: 194
Location: Toronto
Followers: 1

Kudos [?]: 29 [0], given: 0

Re: CR - Wheat Subsidy [#permalink] New post 20 Mar 2008, 11:39
Just to close the discussion. D was it.
Re: CR - Wheat Subsidy   [#permalink] 20 Mar 2008, 11:39
    Similar topics Author Replies Last post
Similar
Topics:
4 Farmers in developing countries claim that the United States goodyear2013 5 23 Mar 2014, 08:25
3 Experts publish their posts in the topic Farmers in developing countries claim that the United States venmic 7 21 Jul 2012, 09:18
Experts publish their posts in the topic vveaken -Farmers in developing countries claim that the Unit venmic 4 21 Jul 2012, 09:17
In developed countries, such as the United States, the x97agarwal 6 12 Jul 2008, 19:56
1 Farmers in developing countries claim that the United States karlfurt 15 21 Nov 2006, 09:27
Display posts from previous: Sort by

Farmers in developing countries claim that the United States

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.