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# Current farm policy is institutionalized penalization of

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Current farm policy is institutionalized penalization of [#permalink]

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28 Feb 2009, 00:06
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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 [Reveal] Spoiler: OA If you have any questions you can ask an expert New! Senior Manager Joined: 21 Apr 2008 Posts: 489 Schools: Kellogg, MIT, Michigan, Berkeley, Marshall, Mellon Followers: 9 Kudos [?]: 52 [0], given: 13 Re: CR: Farm policy [#permalink] ### Show Tags 28 Feb 2009, 09:28 ritula wrote: 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

Hi mates,

IMO A

I've chosen A thanks to eliminating others.

II out because it talks about ethanol production costs and the question is wider.

III out because it talks about just full-time farmers and alse because the net worth doesn't add any special thing

and because "None" is not among answers, I must be correct

OA and Source?

Cheers
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Re: CR: Farm policy [#permalink]

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28 Feb 2009, 11:35
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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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Re: CR: Farm policy [#permalink]

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28 Feb 2009, 12:18
agreed I and II both
+1 to you
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Re: CR: Farm policy [#permalink]

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28 Feb 2009, 17:39
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.
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Re: CR: Farm policy [#permalink]

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28 Feb 2009, 23:29
OA is D. thanks Technext for the explanation
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Re: CR: Farm policy [#permalink]

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01 Mar 2009, 12:24
ritula wrote:
OA is D. thanks Technext for the explanation

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.
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Re: CR: Farm policy [#permalink]

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02 Feb 2010, 06:55
Quote:
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.
ritula wrote:
OA is D. thanks Technext for the explanation

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.

I second that....the logic behind II being a supporting statement is not convincing.
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Re: CR: Farm policy [#permalink]

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02 Feb 2010, 07:30
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.
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Re: CR: Farm policy [#permalink]

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02 Feb 2010, 12:31
I agree I and II so answer D is correct
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Re: CR: Farm policy [#permalink]

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02 Feb 2010, 22:26
1
KUDOS
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 Manager Joined: 27 Aug 2009 Posts: 138 Followers: 2 Kudos [?]: 31 [0], given: 1 Re: CR: Farm policy [#permalink] ### Show Tags 02 Feb 2010, 23:50 Wow! that's a confusing one! Thanks for posting! Intern Joined: 12 Jul 2009 Posts: 12 Followers: 0 Kudos [?]: 3 [0], given: 2 Re: CR: Farm policy [#permalink] ### Show Tags 11 Feb 2010, 10:26 Clearly D as III is completely irrelevant. Manager Joined: 10 Feb 2010 Posts: 192 Followers: 2 Kudos [?]: 118 [0], given: 6 Re: CR: Farm policy [#permalink] ### Show Tags 11 Feb 2010, 14:00 D Intern Joined: 14 Sep 2010 Posts: 7 Followers: 0 Kudos [?]: 1 [0], given: 6 Re: CR: Farm policy [#permalink] ### Show Tags 07 Feb 2011, 08:52 silasaaa2 wrote: 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

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?
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Re: CR: Farm policy [#permalink]

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07 Feb 2011, 10:22
Easy D
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Re: CR: Farm policy [#permalink]

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07 Feb 2011, 10:50
Thanks guys, but i still agree with sanjay_gmat. how can u know it will cost millions?

thanks.
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Re: CR: Farm policy [#permalink]

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07 Feb 2011, 13:14
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Re: CR: Farm policy [#permalink]

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07 Feb 2011, 14:18
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.
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Re: CR: Farm policy [#permalink]

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07 Feb 2011, 14:22
yea - same problem for me...
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Re: CR: Farm policy   [#permalink] 07 Feb 2011, 14:22

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