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Domestic agriculture is struggling because agriculture from overseas i

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Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 29 Aug 2019, 23:03
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Domestic agriculture is struggling because agriculture from overseas is available at lower prices. Since improved agrarian technology would enable domestic farmers to produce agriculture at more competitive costs, to improve the competitiveness of domestic agriculture, the government plans to subsidize domestic farmers, because as it pays subsidies directly to these domestic farmers, the farmers will have the funds they need to invest in technology.

Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to improve the competitiveness of domestic agriculture?


A. The cost benefits of investing in agrarian technology could take several years to manifest.

B. Overseas farmers might have some competitive advantage over domestic farmers other than price competitiveness.

C. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology.

D. The technological enhancement will be valid only for two years, after which competitors in other countries would have outpaced the capabilities of domestic agriculture.

E. The subsidies paid to domestic farmers will come out of national tax funds that would be better spent in other ways.


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Re: Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 30 Aug 2019, 01:12
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A. The cost benefits of investing in agrarian technology could take several years to manifest.- still says that it will benefit. When is not a question. No.

B. Overseas farmers might have some competitive advantage over domestic farmers other than price competitiveness.- argument says that if they bring in technology,they can be competitive. What advantage others have doesn't matter.

C. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology.- if they don't invest the subsidy in technology, there is no point of giving subsidy at all. Hence our answer.

D. The technological enhancement will be valid only for two years, after which competitors in other countries would have outpaced the capabilities of domestic agriculture.- timefreme isn't the concern.

E. The subsidies paid to domestic farmers will come out of national tax funds that would be better spent in other ways.- doesn't matter.

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Re: Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 30 Aug 2019, 04:32
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Bunuel wrote:
Domestic agriculture is struggling because agriculture from overseas is available at lower prices. Since improved agrarian technology would enable domestic farmers to produce agriculture at more competitive costs, to improve the competitiveness of domestic agriculture, the government plans to subsidize domestic farmers, because as it pays subsidies directly to these domestic farmers, the farmers will have the funds they need to invest in technology.

Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to improve the competitiveness of domestic agriculture?


Break it down:

Govt $ -> Tech Investment -> Competitive

Prethink: What if the farmers will use the money for something else?

A. The cost benefits of investing in agrarian technology could take several years to manifest.
This doesn't weaken the argument. The subsidy could still workout for the better and lead to competitiveness.

B. Overseas farmers might have some competitive advantage over domestic farmers other than price competitiveness.
Irrelevant. The passage is only concerned with price competition.

C. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology.
Good.

D. The technological enhancement will be valid only for two years, after which competitors in other countries would have outpaced the capabilities of domestic
agriculture.

Doesn't weaken the argument + is too specific about timeline, which opens up a can of worms.

E. The subsidies paid to domestic farmers will come out of national tax funds that would be better spent in other ways.
Irrelevant. Doesn't matter where the money comes from, we're only evaluating the plan.
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Re: Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 31 Aug 2019, 16:50
C. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology.- shows producers may or may not help plan be successful hence weakens
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Re: Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 01 Sep 2019, 03:14
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Bunuel wrote:
Domestic agriculture is struggling because agriculture from overseas is available at lower prices. Since improved agrarian technology would enable domestic farmers to produce agriculture at more competitive costs, to improve the competitiveness of domestic agriculture, the government plans to subsidize domestic farmers, because as it pays subsidies directly to these domestic farmers, the farmers will have the funds they need to invest in technology.

Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to improve the competitiveness of domestic agriculture?


A. The cost benefits of investing in agrarian technology could take several years to manifest.

B. Overseas farmers might have some competitive advantage over domestic farmers other than price competitiveness.

C. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology.

D. The technological enhancement will be valid only for two years, after which competitors in other countries would have outpaced the capabilities of domestic agriculture.

E. The subsidies paid to domestic farmers will come out of national tax funds that would be better spent in other ways.


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Official Explanation



Reading the question: the prompt gives a plan, and the question stem asks us to cast doubt on the plan. We care about whether or not domestic agriculture improves in competitiveness. So we can use that as a basic filter and ask of each answer choice, "does or could domestic agriculture still improve in competitiveness?"

Applying the filter: choice (A) is irrelevant, because the domestic agriculture could still improve in competitiveness; the plan doesn't have a deadline. Choice (B) tells us that competitors might still have an advantage. But even then, the domestic agriculture may be in a better relative position that it was before; the gap has narrowed; it has improved. So (B) is out. Choice (C) looks promising; if domestic farmers pocket the money, domestic agriculture does not become more competitive. So choice (C) stays in. (D) is hardly great news, but the domestic agriculture could still improve in competitiveness. So (D) is out. We eliminate (E), also, since (E) raises considerations immaterial to whether the plan will work. We're left with (C).

Logical proof: we can apply the negation test to (C). If we negate (C), domestic producers of agriculture have lots of incentive to use the subsidies to invest in agrarian technology. In that case, the expectation that domestic agriculture would improve in competitiveness is strengthened. The fact that the negated (C) is a strengthener confirms that non-negated (C) is a weakener.

The correct answer is (C).
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Re: Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 03 Sep 2019, 11:35
I picked answer C.

While the argument claims that the government plans to subsidize farmers so that they can have enough funds to invest in the technology, which would help them to gain a competitive advantage with regards to price with their oversea competitors. It would mean that the plan is unlikely to be successful if the farmer would use the subsidies for other purposes rather than investment in the technology.
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Re: Domestic agriculture is struggling because agriculture from overseas i  [#permalink]

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New post 17 Nov 2019, 05:04
Bunuel wrote:
Domestic agriculture is struggling because agriculture from overseas is available at lower prices. Since improved agrarian technology would enable domestic farmers to produce agriculture at more competitive costs, to improve the competitiveness of domestic agriculture, the government plans to subsidize domestic farmers, because as it pays subsidies directly to these domestic farmers, the farmers will have the funds they need to invest in technology
The government plans to subsidize domestic farmers in an attempt to provide these farmers with spare cash which the government expects that these farmers will invest in competitive technology


Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to improve the competitiveness of domestic agriculture?

A. The cost benefits of investing in agrarian technology could take several years to manifest.
It is fine if it takes sometime, as it is better to reach the goal in say 2 years than continue making losses for ever just because the initial runway is long. Plus, the government has nowhere mentioned that the subsidies will be provided for a certain number of years only.

B. Overseas farmers might have some competitive advantage over domestic farmers other than price competitiveness.
The government has already analyzed all the advantages that overseas farmers have and, based on its analysis, concluded that it is competitive technology that will help bridge the gap (price competitiveness) for domestic farmers

C. Domestic producers of agriculture have some incentive not use the subsidies to invest in agrarian technology.
This option states that domestic farmers have an incentive to pocket-in the funds received through subsidies, and they will not invest the funds into technology. This statement goes against the government's expectation that the domestic farmers will invest these funds into competitive technology, and hence weakens the argument

D. The technological enhancement will be valid only for two years, after which competitors in other countries would have outpaced the capabilities of domestic agriculture.
The government has nowhere mentioned that the subsidies will be stopped after 2 years, and hence the farmers will be able to continue their investment into competitive technology

E. The subsidies paid to domestic farmers will come out of national tax funds that would be better spent in other ways.
1. We are concerned with the success of the plan and not concerned about where those funds will come from
2. There might be n other initiatives to invest the funds, but at this moment the government has prioritized the funding to domestic farmers (the government plans to subsidize domestic farmers)
3. Both the above points make this option irrelevant


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Correct Ans - C
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Re: Domestic agriculture is struggling because agriculture from overseas i   [#permalink] 17 Nov 2019, 05:04
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