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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
(A) Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads: Wrong, this option does not talks about the gap b/w market price & target price. Only target price is increased, nothing has been mentioned about market price (we don't know if it would increased, decrease or stayed constant)

(B) Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year: Wrong, Argument has nothing to do with the 'exports'

(C) Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year: Bingo, correct one

(D) Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983: 1984?? we are talking about 1983, Chuck it

(E) Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983: Wrong, No mention of difference b/w target price and retail/ market price


Please give kudos if this solution helps!!
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
I just failed to understand what the question stem was trying to convey. How the government gave the aid, the difference between the preset and the market price, etc. This all just went way above my head after reading the question stem. I even tried re-reading it, but just could not totally grasp what the question stem was trying to convey here.
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A severe drought can actually lessen the total amount of government ai [#permalink]
nikhilongc wrote:
I just failed to understand what the question stem was trying to convey. How the government gave the aid, the difference between the preset and the market price, etc. This all just went way above my head after reading the question stem. I even tried re-reading it, but just could not totally grasp what the question stem was trying to convey here.


Basically we need to find a reason why this year government doesn't need to pay to farmers.

In Normal scenarios: government pays when farmers couldn't get the market price

Draught year: What in general may happen? Price may be much higher due to shortage of supply

So which option says that in draught years government doesn't need to pay?
You will find option C suits well

I hope you can crack it now

Originally posted by mSKR on 06 May 2021, 14:41.
Last edited by mSKR on 11 May 2021, 23:26, edited 1 time in total.
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
mSKR wrote:
nikhilongc wrote:
I just failed to understand what the question stem was trying to convey. How the government gave the aid, the difference between the preset and the market price, etc. This all just went way above my head after reading the question stem. I even tried re-reading it, but just could not totally grasp what the question stem was trying to convey here.


Basically we need to find a reason why this year government doesn't need to pay to farmers.

In Normal scenarios: government pays when farmers couldn't get the market price

Draught year: What in general may happen? Price may be much higher due to shortage of supply

So which option says that in draught years government doesn't need to pay?
You will find option D suits well

I hope you can crack it now


Thanks man. But I think there's a typo error. You meant Option C not D, right?
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
nikhilongc wrote:
mSKR wrote:
nikhilongc wrote:
I just failed to understand what the question stem was trying to convey. How the government gave the aid, the difference between the preset and the market price, etc. This all just went way above my head after reading the question stem. I even tried re-reading it, but just could not totally grasp what the question stem was trying to convey here.


Basically we need to find a reason why this year government doesn't need to pay to farmers.

In Normal scenarios: government pays when farmers couldn't get the market price

Draught year: What in general may happen? Price may be much higher due to shortage of supply

So which option says that in draught years government doesn't need to pay?
You will find option D suits well

I hope you can crack it now


Thanks man. But I think there's a typo error. You meant Option C not D, right?



yup! I have updated. :D :D
thanks!
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
(C) Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.

Acc to the statement the gap between market price and target prices increase, then why the govt aid was decreased?

Can someone please explain?
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
Sneha2021 wrote:
(C) Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.

Acc to the statement the gap between market price and target prices increase, then why the govt aid was decreased?

Can someone please explain?



A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group.
>> It means government needs to pay less when drought happens.
Why in 1983 , government paid less?
because : prices increased, farmers get more money, and government needs to pay less
( key point = government support farmers to get money to some threshold .The threshold decreased during drought )

I hope it is clear
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
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Re: A severe drought can actually lessen the total amount of government ai [#permalink]
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