It is currently 17 Oct 2017, 11:56

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Current farm policy is institutionalized penalization of

Author Message
Director
Joined: 05 Jan 2008
Posts: 685

Kudos [?]: 600 [0], given: 0

Current farm policy is institutionalized penalization of [#permalink]

### Show Tags

03 May 2008, 02:03
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

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 authors 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
_________________

Persistence+Patience+Persistence+Patience=G...O...A...L

Kudos [?]: 600 [0], given: 0

Director
Joined: 01 Jan 2008
Posts: 504

Kudos [?]: 54 [0], given: 0

### Show Tags

03 May 2008, 02:35
Only three answers apply here A, B & D . D is better as its inclusive; both choices mentioned are linked to foreign policy .. Whats the OA

Last edited by bhatiagp on 04 May 2008, 18:38, edited 1 time in total.

Kudos [?]: 54 [0], given: 0

CEO
Joined: 17 May 2007
Posts: 2947

Kudos [?]: 666 [0], given: 210

### Show Tags

04 May 2008, 00:36
I'd say A - thats the only one that demonstrates that billions of dollars are being paid out in subsidies (and thereby costing the taxpayer).

Kudos [?]: 666 [0], given: 210

Intern
Joined: 03 Oct 2007
Posts: 17

Kudos [?]: 7 [0], given: 0

### Show Tags

04 May 2008, 07:38
I'd say D.
III - is out of scope
I and II are both about higher prices and taxes. They seem good for me.

Kudos [?]: 7 [0], given: 0

Director
Joined: 26 Jul 2007
Posts: 535

Kudos [?]: 180 [0], given: 0

Schools: Stern, McCombs, Marshall, Wharton

### Show Tags

08 May 2008, 11:07
I say A

The claims seem to be focused on food prices and II seems to be talking about ethanol. III seems way out of scope so I'm left with just I.

Kudos [?]: 180 [0], given: 0

SVP
Joined: 28 Dec 2005
Posts: 1545

Kudos [?]: 178 [0], given: 2

### Show Tags

08 May 2008, 12:27
i think its D as well

Kudos [?]: 178 [0], given: 2

Manager
Joined: 26 Mar 2008
Posts: 63

Kudos [?]: 13 [0], given: 1

Schools: Duke '13

### Show Tags

08 May 2008, 15:07
A

Statement 1 notes the costs consumers \$12B in higher food costs

Statement 2 does not clealry result in higher costs to consumers. It is plausible the \$4 results in greater savings than the same amount. The statement only tells us the cost of the \$1 of benefits provided to farmers and not whether the subsidy increases food prices.

Statement 3 is irrelevant.

Kudos [?]: 13 [0], given: 1

Manager
Joined: 21 Mar 2008
Posts: 79

Kudos [?]: 16 [0], given: 0

### Show Tags

08 May 2008, 15:22
I will go with D.

Kudos [?]: 16 [0], given: 0

SVP
Joined: 11 Mar 2008
Posts: 1632

Kudos [?]: 213 [0], given: 0

Location: Southern California
Schools: Chicago (dinged), Tuck (November), Columbia (RD)

### Show Tags

08 May 2008, 15:25
D
_________________

Check out the new Career Forum
http://gmatclub.com/forum/133

Kudos [?]: 213 [0], given: 0

Manager
Joined: 22 Dec 2007
Posts: 146

Kudos [?]: 10 [0], given: 0

### Show Tags

08 May 2008, 18:32
A for me.
D seems to factor in ethanol which does not constitute food.

Kudos [?]: 10 [0], given: 0

SVP
Joined: 11 Mar 2008
Posts: 1632

Kudos [?]: 213 [0], given: 0

Location: Southern California
Schools: Chicago (dinged), Tuck (November), Columbia (RD)

### Show Tags

08 May 2008, 18:46
OA?
_________________

Check out the new Career Forum
http://gmatclub.com/forum/133

Kudos [?]: 213 [0], given: 0

Re: CR: Farm Subsidies   [#permalink] 08 May 2008, 18:46
Display posts from previous: Sort by