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# Pardon me if the post is duplicate. I am a new user in this

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Manager
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Pardon me if the post is duplicate. I am a new user in this [#permalink]

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15 Feb 2007, 15:39
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Pardon me if the post is duplicate. I am a new user in this forum.

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 authorâ€™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

Last edited by rdg on 16 Feb 2007, 10:50, edited 1 time in total.

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Intern
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15 Feb 2007, 15:55
D.

I believe I & II provides the support for " ... costs the taxpayer billions of dollars a year" ... although II doesn't necessary lead to billions ...

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Director
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15 Feb 2007, 20:49
D. As in 1, The subsidies are higher than what is required thi=us increasing the tax burden.
As in 2, The cost of production is higher thus makes things costlier.

Hence 1 & 2.

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Manager
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15 Feb 2007, 21:04
jpauksta wrote:
D.

I believe I & II provides the support for " ... costs the taxpayer billions of dollars a year" ... although II doesn't necessary lead to billions ...

But are all farmers using ethanol ?

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Director
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15 Feb 2007, 21:11
JainVineet has rightly pointed. But I think since the question says that if true, which means, whatever number of farmers use ethanol, it certainly contribute to the loss, however minuscile the loss is.

rdg, what is the OA ?

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Manager
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Re: CR - Farm Policy [#permalink]

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16 Feb 2007, 10:38
rdg wrote:
Pardon me if the post is duplicate. I am a new user in this forum.

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 authorâ€™s claims above?
I. Farm subsidies amount to roughly \$20 billion a year in federal payouts and \$12 billion more in higher food prices.
Only I address both highlighted concerns above.
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

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Director
Affiliations: FRM Charter holder
Joined: 02 Dec 2006
Posts: 726

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Schools: Stanford, Chicago Booth, Babson College
Re: CR - Farm Policy [#permalink]

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16 Feb 2007, 20:26
arj_singh1976 wrote:
rdg wrote:
Pardon me if the post is duplicate. I am a new user in this forum.

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 authorâ€™s claims above?
I. Farm subsidies amount to roughly \$20 billion a year in federal payouts and \$12 billion more in higher food prices.
Only I address both highlighted concerns above.
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

Arj, why do u think II is not valid?

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Manager
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19 Feb 2007, 23:10
OA is 'D'

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19 Feb 2007, 23:10
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# Pardon me if the post is duplicate. I am a new user in this

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