Last visit was: 26 Apr 2024, 14:34 It is currently 26 Apr 2024, 14:34

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.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Kudos
Tags:
Show Tags
Hide Tags
User avatar
Manager
Manager
Joined: 20 Jan 2010
Status:Not afraid of failures, disappointments, and falls.
Posts: 217
Own Kudos [?]: 447 [4]
Given Kudos: 260
Concentration: Technology, Entrepreneurship
WE:Operations (Telecommunications)
Send PM
User avatar
Manhattan Prep Instructor
Joined: 21 Jan 2010
Affiliations: ManhattanGMAT
Posts: 323
Own Kudos [?]: 7018 [3]
Given Kudos: 11
Location: San Francisco
Concentration: Journalism
 Q47  V47 GMAT 2: 770  Q49  V48
Send PM
Senior Manager
Senior Manager
Joined: 18 Sep 2009
Status:Yeah well whatever.
Posts: 252
Own Kudos [?]: 246 [1]
Given Kudos: 17
Location: United States
GMAT 1: 660 Q42 V39
GMAT 2: 730 Q48 V42
GPA: 3.49
WE:Analyst (Insurance)
Send PM
Board of Directors
Joined: 17 Jul 2014
Posts: 2163
Own Kudos [?]: 1180 [1]
Given Kudos: 236
Location: United States (IL)
Concentration: Finance, Economics
GMAT 1: 650 Q49 V30
GPA: 3.92
WE:General Management (Transportation)
Send PM
Re: Canadian wheat farmers produced so much wheat over the last season tha [#permalink]
1
Kudos
this is a paradox type question.

the correct answer should provide new information, so that when to have it in our "magic formula", the paradox would be explained.
first of all, there are 3 types of correct answer that would help solve the paradox => showing that the ineffective implementation of the plan; => alternate explanation; => or improper comparison.

Now, the government would pay $, yet the plan would not cause any losses.
clearly, the answer choice should present an alternate explanation why it is so!

now, let's get back to the magic formula:

Because (answer choice), the government would not have $$ loss, although it would give $$ to farmers.


A If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.
clearly, the assumption here must be that the $$ given would not be > than the $$ received from taxes.

B Wheat production in several countries declined the year that the compensation program went into effect in Canada.
does not help to solve the paradox.

C The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.
still doesn't help to solve the issue.

D The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farms.
while it might be true, this answer choice does not help us to explain why would the gvt not lose $$ even though they would offer $ to farmers.

E Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.
irrelevant and does not explain the paradox.

A thus is the best.
User avatar
Non-Human User
Joined: 01 Oct 2013
Posts: 17226
Own Kudos [?]: 848 [0]
Given Kudos: 0
Send PM
Re: Canadian wheat farmers produced so much wheat over the last season tha [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Bot
Re: Canadian wheat farmers produced so much wheat over the last season tha [#permalink]
Moderators:
GMAT Club Verbal Expert
6923 posts
GMAT Club Verbal Expert
238 posts
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne