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The cotton farms of Country Q became so productive that the market cou

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 13 May 2008, 21:28
thanks ...got it

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 20 Jun 2008, 13:14
OA is A! Use money (that may be lost if lost in tax) to buy cotton.
Well, we call "one arrow shoots two birds" : Our ancient idiom

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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The cotton farms of Country Q became so productive that the market could not absorb all that they
produced. Consequently, cotton prices fell. The government tried to boost cotton prices by offering farmers who took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per farm.

The government’s program, if successful, will not be a net burden on the budget. Which of the following, if
true, is the best basis for an explanation of how this could be so?

(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from
taxes on farm profits.
(B) Cotton production in several counties other than Q declined slightly the year that the support-payment
program went into effect in Q.
(C) The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level
in the base year for the program.
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less
per acre for those acres that were withdrawn from production than they were for smaller farms.
(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn from production to grow any other crop.

Got this wrong as well....!! Questions to kill your self confidence :(

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 30 Jun 2008, 18:51
IMO A.
Because if this add more revenue to add to government kitty then government is not at loss.

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New post 30 Jun 2008, 19:02
IMO A. The only way the gov does not loose is by makign money on taxes.

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 30 Jun 2008, 19:16
Conclusion: Govt prog if successful - not cause burden on budget


To Strengthen this, from the premises show that, other one causes more harm to govt budget than support program.

A - says that govt is loosing revenue becoz of the depressed price. So support program will atleast fill some of the gap for this budget loss.

all other choices are irrelevent.

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 10 Jul 2009, 00:10
The cotton farms of Country Q became so productive that the market could not absorb all that they produced. Consequently, cotton prices fell. The government tried to boost cotton prices by offering farmers who took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per farm.
The government's program, if successful, will not be a net burden on the budget. Which of the following, if true, is the best basis for an explanation of how this could be so?
Which of the following, if true, most weakens the argument above?
(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from taxes on farm profits.
(B) Cotton production in several countries other than Q declined slightly the year that the support-payment program went into effect in Q.
(C) The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level in the base year for the program.
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less per acre for those acres that were withdrawn from production than they were for smaller farms.
(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn from production to grow any other crop.


Oa is
[Reveal] Spoiler:
a
.

Can somebody pl explain why even after losing revenue budget will not change?[code][/code]

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 10 Jul 2009, 01:57
You have to search for that option which weakens the argument,means search for that option which has a net burden on the budget.

(A) is the one.

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 10 Jul 2009, 02:41
Your post contains two different questions:

1. The government's program, if successful, will not be a net burden on the budget. Which of the following, if true, is the best basis for an explanation of how this could be so?

2. Which of the following, if true, most weakens the argument above?

For question 1, the answer should be A
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New post 23 Jul 2009, 00:52
Yup A it should be.

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 18 Oct 2009, 12:31
This is a GMATPrep question. And the questions is - The government's program, if successful, will not be a net burden on the budget. Which of the following, if true, is the best basis for an explanation of how this could be so?

Can someone please explain the approach of solving this question.

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New post 29 Oct 2009, 17:38
The cotton farms of Country Q became so productive that the market could not absorb all that they
produced. Consequently, cotton prices fell. The government tried to boost cotton prices by offering farmers who
took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per
farm.
The government’s program, if successful, will not be a net burden on the budget. Which of the following, if
true, is the best basis for an explanation of how this could be so?
(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from
taxes on farm profits.
(B) Cotton production in several counties other than Q declined slightly the year that the support-payment
program went into effect in Q.
(C) The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level
in the base year for the program.
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less
per acre for those acres that were withdrawn from production than they were for smaller farms.
(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn
from production to grow any other crop.

[Reveal] Spoiler:
a

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 30 Oct 2009, 07:08
We know that if the country has outlays and the net effect is not negative then the answer must mention or affect tax revenue. If A is true then the money they outlayed would have offset the lost revenue from the year before and would have benefited the farmers who were much better off economically.
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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 16 Apr 2010, 09:32
This is a tricky question. I feel that after doing so many CR questions we have been trained to focus in on the Conclusion. But I think for this question we need to look a few steps before the conclusion. Choice A looks at what is happening before the government provides direct support. Lower prices lead to lower profits lead to lower government taxes. So the government is already not doing to great. And after the government provides the direct support, prices should rise, higher profits, higher taxes but money spent on direct support... so the government still not doing to great. No net change.

I know this is more of an explanation after the answer is known. I struggled a bit even after finding the answer and this is how I could justify.
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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 04 Jun 2010, 05:04
I am confused b/w A and D.

Can someone explain on this?
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New post 07 Jun 2010, 09:59
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my pick is (B)

Can someone explain how the correct option is A.

It cannot be D because the option says "The specified maximum per farm meant that for very large cotton farms the support payments were less than they were for smaller farms." But we dont know how many farms in Country Q were very large or small and so it does not explain anything about how the program will not be a net burden on the budget.

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 30 Jun 2010, 08:23
The question is more like a strengthening one. If depressed cotton prices meant more revenue
for govt., then the basis of the plan is negated. No need to offer incentives for farmers to take
25% of acreage out of stock.

If, on the other hand, over production results to depressed cotton prices, resulting to a deficit to govt budget, then any plan that will reduce the amount of stock is a plausible one.

I think that is what option A says.
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New post 03 Jul 2010, 16:46
A is good.

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New post 16 Jul 2010, 03:14
149. The cotton farms of Country Q became so productive that the market could not absorb all that they
produced. Consequently, cotton prices fell. The government tried to boost cotton prices by offering farmers who
took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per
farm.
The government’s program, if successful, will not be a net burden on the budget. Which of the following, if
true, is the best basis for an explanation of how this could be so?
(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from
taxes on farm profits.
(B) Cotton production in several counties other than Q declined slightly the year that the support-payment
program went into effect in Q.
(C) The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level
in the base year for the program.
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less
per acre for those acres that were withdrawn from production than they were for smaller farms.
(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn
from production to grow any other crop.


Guys I completely didnt get this one and there is no conclusion, someone help pleas !

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Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

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New post 16 Jul 2010, 05:05
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Dissecting the argument into premises.
P1 : market could not absorb all that they produced
P2 : cotton prices fell
P3 : government tried to boost cotton prices
P4 : government’s program is NOT a burden on the budget(This is not actually a premise)

The government’s program, if successful, will not be a net burden on the budget. Which of the following, if
true, is the best basis for an explanation of how this could be so?
(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from taxes on farm profits. >> So govt doesn't want to loose the revenue on the sales taxes. Makes sense to boost cotton prices. and explains WHY the program will NOT be a burden. Answer
(B) Cotton production in several counties other than Q declined slightly the year that the support-payment program went into effect in Q. >> Irrelevant. What happens in countries other than Q has no bearing
(C) The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level in the base year for the program. >> Irrelevant. How does this explain the govt intervention??
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less per acre for those acres that were withdrawn from production than they were for smaller farms. >> Take this pattern and write it. One of the favorite tricks of GMAT. When the stimulus doesn't even talk about the comparison, answer choice links a comparison to the argument.

Payments for Very large cotton farms Vs smaller farms is Irrelevant and does NOT explain Govt intervention.

(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn from production to grow any other crop. >> Grow any other crop????. Are you serious. Another way to digress. Be wary of scope shifts. We are ONLY concerned with cotton.

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Re: The cotton farms of Country Q became so productive that the market cou   [#permalink] 16 Jul 2010, 05:05

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