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# Current farm policy is institutionalized penalization of

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SVP
Joined: 16 Jul 2009
Posts: 1535
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 44

Kudos [?]: 1199 [0], given: 2

Current farm policy is institutionalized penalization of [#permalink]

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25 Jul 2009, 08:17
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70% (02:05) correct 30% (01:33) wrong based on 68 sessions

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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 _________________ The sky is the limit 800 is the limit GMAT Club Premium Membership - big benefits and savings If you have any questions you can ask an expert New! Manager Joined: 10 Jul 2009 Posts: 165 Followers: 2 Kudos [?]: 106 [0], given: 8 Re: farm policy [#permalink] ### Show Tags 25 Jul 2009, 10:00 answer is 'D' (I and II only) SVP Joined: 16 Jul 2009 Posts: 1535 Schools: CBS WE 1: 4 years (Consulting) Followers: 44 Kudos [?]: 1199 [0], given: 2 Re: farm policy [#permalink] ### Show Tags 18 Aug 2009, 14:34 Aleehsgonji wrote: answer is 'D' (I and II only) And why is that? _________________ The sky is the limit 800 is the limit GMAT Club Premium Membership - big benefits and savings Senior Manager Joined: 17 Jul 2009 Posts: 291 Concentration: Nonprofit, Strategy GPA: 3.42 WE: Engineering (Computer Hardware) Followers: 1 Kudos [?]: 41 [0], given: 9 Re: farm policy [#permalink] ### Show Tags 18 Aug 2009, 14:55 would go with A, as 3 is not related and 2 does not say how much money in total is being subsidized or cost people.... edit: never mind, the argument by the author does not say how much, but rather just penalizes consumers, so 2 also works as it states consumers is being charged way more than farmers benefit. so, I and II both are right hence D. Senior Manager Joined: 26 Jul 2009 Posts: 350 Followers: 2 Kudos [?]: 82 [0], given: 32 Re: farm policy [#permalink] ### Show Tags 19 Aug 2009, 01:50 i go with D. SVP Joined: 16 Jul 2009 Posts: 1535 Schools: CBS WE 1: 4 years (Consulting) Followers: 44 Kudos [?]: 1199 [0], given: 2 Re: farm policy [#permalink] ### Show Tags 19 Aug 2009, 02:53 boeinz wrote: i go with D. can u explain that? thanks _________________ The sky is the limit 800 is the limit GMAT Club Premium Membership - big benefits and savings Senior Manager Joined: 26 Jul 2009 Posts: 350 Followers: 2 Kudos [?]: 82 [0], given: 32 Re: farm policy [#permalink] ### Show Tags 19 Aug 2009, 18:04 I. Farm subsidies amount to roughly$20 billion a year in federal payouts and $12 billion more in higher food prices. > Extracted: "It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year." > Indeed billions of dollars are committed. 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. > Extracted: "Current farm policy is institutionalized penalization of consumers." > Indeed, this policy is lousy because costs associated with the implementation far exceeds the benefits, hence consumers are penalized in a way. SVP Joined: 16 Jul 2009 Posts: 1535 Schools: CBS WE 1: 4 years (Consulting) Followers: 44 Kudos [?]: 1199 [0], given: 2 Re: farm policy [#permalink] ### Show Tags 20 Aug 2009, 12:14 boeinz wrote: I. Farm subsidies amount to roughly$20 billion a year in federal payouts and $12 billion more in higher food prices. > Extracted: "It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year." > Indeed billions of dollars are committed. 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. > Extracted: "Current farm policy is institutionalized penalization of consumers." > Indeed, this policy is lousy because costs associated with the implementation far exceeds the benefits, hence consumers are penalized in a way. Thanks _________________ The sky is the limit 800 is the limit GMAT Club Premium Membership - big benefits and savings Manager Status: Bunuel's fan! Joined: 08 Jul 2011 Posts: 233 Followers: 1 Kudos [?]: 47 [0], given: 55 Re: farm policy [#permalink] ### Show Tags 01 May 2012, 06:54 [quote="boeinz"]I. Farm subsidies amount to roughly$20 billion a year in federal payouts and \$12 billion more in higher food prices.
> Extracted: "It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year."
> Indeed billions of dollars are committed.

I agree with the "costs taxpayer billions of dollars". However, I dont see why the subsidies "iincreases food prices for middle- and low-income families"? Thanks.
Re: farm policy   [#permalink] 01 May 2012, 06:54
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