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Farmers in developing countries claim that the United States governmen

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

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New post 04 Aug 2015, 19:08
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How come "D" is an answer?
D says: Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.

We do not know how much the current production stats of Canada and Russia. It might be possible, United States is currently producing 80 pc of global market and combined Canada and Russia is 2 pc. Even if Canada and Russia would doubled the wheat production (4 pc) wouldn't suffice the criteria and need.
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 29 Jan 2016, 04:02
souvik101990 wrote:
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?

A. Wheat that is not processed for consumption is often used for certain industrial applications.

B. Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C. The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

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

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




The objective here is to show that even if American farmers reduce their output yield of wheat crop the global price of wheat crop must not drop

Option D - says the output yield will remain the same even if American farmers reduce their output yield of wheat crop.

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

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New post 13 Jul 2016, 12:11
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goodyear2013 wrote:
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?

A) Wheat that is not processed for consumption can be used for certain industrial applications.
B) Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
C) The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.
D) Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.
E) The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.



Argument implies that more quantity of wheat is the reason for low price.

We have to find a claim that shows that even if government does not control the amount of wheat, price will not reduce.

Price will not reduce if the quantity of wheat remains the same. Option D is stating the same that if USA reduces the quantity, other countries will increase it, and hence, the quantity will remain the same, not increasing the price.
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 06 Aug 2016, 23:05
Amit0507 wrote:
I still believe the answer is C. Our assumption is, its the Subsidy which is causing the price control. If we can prove that in spite of offering a subsidy, a crop's price can be left to global demand, we have weakened the argument.



The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.
This is about whose global prices higher. This doesn't mean that soybean global price would be lower if subsidies are not offered. if subsidies are not offered, in that case global price of soybeans could me more higher than that we are talking about.

For example

wheat global price 100

soybean global price 120 (in case subsidies offered)
soybean global price 130 (in case subsidies not offered) : In this case we can still say that the global price of soybean is kept low because of subsidies (difference of 10) but in both cases soybean higher to wheat.

In this statement is rephrased such as : The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than soybean global prices when subsidies not offered. Then, it's a weakener.
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 14 Dec 2016, 16:15
I got to D too. If other countries produce more - then US farmers will not be able to sell...
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 04 Jan 2017, 11:08
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?

A) Wheat that is not processed for consumption can be used for certain industrial applications.
(Out Of Scope)
B) Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
(Out Of Scope)
C) The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.
The choice weakens the argument by giving an example of the may not be true condition ,that is the choice says that US subsidies are not the only factor to determine the price of the product,also the price of soybean is independent to that of wheat.
D) Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.
this is most appropriate weakening choice as it says that even if the US would stop producing exccess other countries would start producing more and still the proces of the product(wheat) will be low due to the over production by other countries.
E) The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.
(Of scope since the price of sorghum is not in the argument,it may give an example to show that the US subsidy may or may not impact the prices of a product)
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 31 Jan 2017, 06:09
souvik101990 wrote:
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?

A. Wheat that is not processed for consumption is often used for certain industrial applications.

B. Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.

C. The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.

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

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


Farmers in developing countries claim that the global price of wheat is low because American farmers produce too much of the grain. They also claim that American farmers produce too much wheat because they have no incentive to manage their crops, since the U.S. government will buy whatever wheat American farmers cannot sell on the open market. We are asked to find a choice that weakens the claims of the farmers in developing countries that removing the American subsidy would cause the price of wheat to rise.
(A) That there are uses for wheat that is not eaten is irrelevant here. This does not address any aspect of the farmers' claims.
(B) The fact that buyers of wheat can predict their needs in advance is irrelevant here, because the text indicates that American farmers do not pay attention to actual demand for wheat.
(C) In this argument, the global market for soybeans is irrelevant to the global market for wheat, which is a different commodity with different demand, supply, and pricing structures.
(D) CORRECT. The farmers assume that the sole cause of the wheat surplus is the United States. This answer choice suggests that other countries would modify their output to counterbalance any reduction on the part of the United States, keeping prices constant instead of allowing them to rise.
(E) The price of another crop is largely irrelevant. Moreover, the fact that the price of sorghum, a non-subsidized crop, is lower tends to support, rather than weaken, the claims of the farmers.
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New post 04 Apr 2017, 16:52
While solving this:
Claim: First sentence where it says that government is responsible for lower wheat price.
We need to find option which weakens this, that it is not government.
I don't understand how option D does that?
I selected B thinking non government can make the decision by knowing in future.
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 12 Apr 2017, 21:13
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Conclusion is ''Wheat price would rise in global market if U S govt stop subsidies''.

Weaken :- "Wheat price would not rise in global market if US govt stop subsidies".

Why?

As per option D, if U S reduces production of wheat then other countries(such as Canada and Russia) are likely to produce more. So the less production in U S will be compensated by more production in other countries, so there would be no effect on price of wheat. It clearly weakens the argument.
Hence option D is correct.
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Re: Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 13 Apr 2017, 21:01
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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.
Type - weaken
Boil it down - Without government subsidies, the 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.
Pre-thinking - Without the subsidy , the supply of wheat produced by American farmers will decrease and the price will rise if the demand is constant. But what if other producers of wheat increase their production ?


A.Wheat that is not processed for consumption can be used for certain industrial applications. - Irrelevant
B.Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance. - Out of scope
C.The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat. - mild strengthener ; also the other factors of soybean might differ significantly from wheat
D.Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output. - Correct
E.The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat. - this weakens to a certain extent but we don't know whether the other factors for sorghum market is comparable to wheat market

Answer D
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New post 14 Apr 2017, 07:47
i picked "C" b/c it shows that subsidies offered by the US are not directly correlated to the global price of agriculture...i'm not sold on "D"
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Farmers in developing countries claim that the United States governmen  [#permalink]

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New post 27 Jul 2018, 18:49

Official explanation:



Farmers in developing countries claim that the global price of wheat is low because American farmers produce too much of the grain. They also claim that American farmers produce too much wheat because they have no incentive to manage their crops, since the U.S. government will buy whatever wheat American farmers cannot sell on the open market. We are asked to find a choice that weakens the claims of the farmers in developing countries that removing the American subsidy would cause the price of wheat to rise.

(A) That there are uses for wheat that is not eaten is irrelevant here. This does not address any aspect of the farmers' claims.

(B) The fact that buyers of wheat can predict their needs in advance is irrelevant here, because the text indicates that American farmers do not pay attention to actual demand for wheat.

(C) In this argument, the global market for soybeans is irrelevant to the global market for wheat, which is a different commodity with different demand, supply, and pricing structures.

(D) CORRECT. The farmers assume that the sole cause of the wheat surplus is the United States. This answer choice suggests that other countries would modify their output to counterbalance any reduction on the part of the United States, keeping prices constant instead of allowing them to rise.

(E) The price of another crop is largely irrelevant. Moreover, the fact that the price of sorghum, a non-subsidized crop, is lower tends to support, rather than weaken, the claims of the farmers.

Ans:D
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