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# Farmers in developing countries claim that the United States

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Manager
Joined: 02 Nov 2009
Posts: 139
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Kudos [?]: 178 [1] , given: 97

Farmers in developing countries claim that the United States [#permalink]

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21 Jul 2012, 10:18
1
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35% (medium)

Question Stats:

68% (02:23) correct 32% (01:47) wrong based on 138 sessions

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This is a vveaken question I need an approach to ensure that the ansvver is righ
2) VVHy is C and E irrelavnt to the ansvver
3) Hovv can D be the ansvver

Please explain the assumption here - need help from an expert here please

Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers
are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market.

As a result, American farmers routinely produce more wheat than the
global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on
the open market and the global price of wheat would rise. Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

• Wheat that is not processed for consumption is often used for certain industrial applications.
• Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
• The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

• Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

• The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.
[Reveal] Spoiler: OA
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Manager
Joined: 10 May 2012
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GMAT Date: 09-10-2012
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Kudos [?]: 17 [2] , given: 14

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22 Jul 2012, 14:50
2
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venmic wrote:
This is a vveaken question I need an approach to ensure that the ansvver is righ
2) VVHy is C and E irrelavnt to the ansvver
3) Hovv can D be the ansvver

Please explain the assumption here - need help from an expert here please

Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers
are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market.

As a result, American farmers routinely produce more wheat than the
global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on
the open market and the global price of wheat would rise. Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

• Wheat that is not processed for consumption is often used for certain industrial applications.
• Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
• The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

• Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

• The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.

Hi Venmic,

I'm not an expert, still giving it a shot...you can skip reading if you dont agree with explanation

Conclusion of farmers in developing countries regarding the price of wheat is "United States government, through farm subsidies, is responsible for the artificially low global price of wheat"
We have to weaken this conclusion.

Choice C and E doesnt help addressing issue anyways. Does it? (How would Soy and Sorghum price would effect Global wheat price?)
Choice D says "Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output".
So even if US govt stop giving subsidy to the farmers, even if the farmers stop growing that excess quantity of wheat, the GLOBAL PRICE of wheat will not go up because Canada & Russia will produce more wheat and thus cover up the gap created by US farmers and hence wheat price will not go up again.

This clearly weakens the conclusion.

HTH
Manager
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22 Jul 2012, 15:49
Kudos
VP
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Re: Farmers in developing countries claim that the United States [#permalink]

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01 Nov 2012, 04:52
But here you are assuming that amount of wheat produced by US farmers is equal to that of Russian farmers and Canadian farmers. But in the question it just states that Russia and Canada are likely to produce more wheat if US were to reduce its output. What if Russia and Canada together produced just 1 kg and now they produce 1.1 kg.
From where did you infer that this growth will the gap created by US farmers.
Terrific question by the way.
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Re: Farmers in developing countries claim that the United States [#permalink]

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01 Nov 2012, 05:11
Marcab wrote:
But here you are assuming that amount of wheat produced by US farmers is equal to that of Russian farmers and Canadian farmers. But in the question it just states that Russia and Canada are likely to produce more wheat if US were to reduce its output. What if Russia and Canada together produced just 1 kg and now they produce 1.1 kg.
From where did you infer that this growth will the gap created by US farmers.
Terrific question by the way.

It need not fill the gap created by US farmers. we are looking for an answer choice that "most" weakens the claims of the farmers in developing countries regarding the price of wheat and not one that statistically proves it wrong.
The important logic used in this claim is - because of heavy supply prices are low and if u reduce the supply prices should go up. Ans D says,supply would still be high because if US stops Canada and russia would start supplying. It does weaken the claim.

Hope it helps.
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Black Friday Debrief

Manager
Joined: 10 Jan 2011
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GMAT Date: 07-16-2012
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Kudos [?]: 59 [0], given: 25

Re: Farmers in developing countries claim that the United States [#permalink]

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01 Nov 2012, 05:32
venmic wrote:
This is a vveaken question I need an approach to ensure that the ansvver is righ
2) VVHy is C and E irrelavnt to the ansvver
3) Hovv can D be the ansvver

Please explain the assumption here - need help from an expert here please

Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers
are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market.

As a result, American farmers routinely produce more wheat than the
global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on
the open market and the global price of wheat would rise. Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?

• Wheat that is not processed for consumption is often used for certain industrial applications.
• Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
• The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

• Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

• The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.

Venmic,

This is a causal argument. causality is maintained in the conclusion.

Conclusion: because US Gov is buying excess wheat produce by farmers, the global prices of wheat are very low.

The remaining argument provides the information about the mechanism.

typically, assumption to such a argument are reverse causality is not true (because wheat prices are low US Gov buying it- not true) or no other reason is affecting the wheat prices.

option D provides the alternative to US and hence weakens
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-------Analyze why option A in SC wrong-------

VP
Status: Been a long time guys...
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Re: Farmers in developing countries claim that the United States [#permalink]

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01 Nov 2012, 05:41
So do you think that even if Russia and Canada slightly improve their output, they can alter the global rice. I don't think so.
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Re: Farmers in developing countries claim that the United States [#permalink]

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16 Mar 2014, 03:58
Someone please edit the question to a better format
Re: Farmers in developing countries claim that the United States   [#permalink] 16 Mar 2014, 03:58
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