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# Kernland imposes a high tariff on the export of unprocessed

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Director
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Kernland imposes a high tariff on the export of unprocessed [#permalink]

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15 Jun 2008, 18:35
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Kernland imposes a high tariff on the export of unprocessed cashew nuts in order to ensure that the nuts are sold to domestic processing plants. If the tariff were lifted and unprocessed cashews were sold at world market prices, more farmers could profit by growing cashews. However, since all the processing plants are in urban areas, removing the tariff would seriously hamper the govt's effort to reduce urban unemployment over the next five years.

Which of the following, if true, most seriously weakens the argument?

A. Some of the by-products of processing cashews are used for manufacturing paints and plastics.
B. Other countries in which cashews are processed subsidize their processing plants.
C. More people in Kernland are engaed in farming cashews than in processing them.
d. Buying unprcessed cashews at lower than world market prices enables cashew processors in Kerland to sell processed nuts at competitive prices.
e. A lack of profitable crops is driving an increasing number of small farmers in Kernland off their land and into the cities.
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Director
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15 Jun 2008, 18:48
E
Director
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15 Jun 2008, 18:52
Hey Gmatnub, could you help me understand this one with some explaination. Thanks
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CEO
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16 Jun 2008, 00:44
I agree its E - cause and effect scenario. The tariffs are actually increasing unemployment by driving people into cities.
Director
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16 Jun 2008, 01:35
if Govt removes the tariffs -> cashew farming becomes more profitable -> farmers wont move to cities in search of employment -> urban employmemnt will improve.
Manager
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18 Jun 2008, 12:46
Good one..agree with E - cause and effect
Manager
Joined: 21 Mar 2008
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Kudos [?]: 30 [0], given: 0

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18 Jun 2008, 15:09
whats the OA?
Re: CR - Kernland   [#permalink] 18 Jun 2008, 15:09
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