It is currently 18 Jan 2018, 12:04

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Senior Manager
Senior Manager
User avatar
Joined: 25 Feb 2010
Posts: 445

Kudos [?]: 116 [0], given: 10

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

Show Tags

New post 16 Jul 2010, 07:03
seekmba wrote:
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.



A

Please see the below demonstration:

Paraphrasing;
Gov will fund the farmers who will produce only on 75% of their land to boost the cotton prices.

Fact:
1) cotton production is very high so cotton prices falling.

We have to balance this:

Budget - fund == Budget + ??

Either we can prove fund --> 0
or some other factor might be added to budget,so that it will not be a burden on gov.

I found only A and D were appealing. A is much more stronger explanation than D.
_________________

GGG (Gym / GMAT / Girl) -- Be Serious

Its your duty to post OA afterwards; some one must be waiting for that...

Kudos [?]: 116 [0], given: 10

Senior Manager
Senior Manager
User avatar
Joined: 25 Feb 2010
Posts: 445

Kudos [?]: 116 [0], given: 10

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

Show Tags

New post 16 Jul 2010, 07:04
Refer:

the-cotton-farms-of-country-q-became-so-productive-that-the-86030.html#p750188
_________________

GGG (Gym / GMAT / Girl) -- Be Serious

Its your duty to post OA afterwards; some one must be waiting for that...

Kudos [?]: 116 [0], given: 10

Manager
Manager
avatar
Joined: 09 Jul 2010
Posts: 140

Kudos [?]: 34 [0], given: 3

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

Show Tags

New post 17 Jul 2010, 01:25
A it is
rightly explained by nusmavrik
_________________

consider cudos if you like my post

Kudos [?]: 34 [0], given: 3

Manager
Manager
avatar
Joined: 09 Jul 2010
Posts: 140

Kudos [?]: 34 [0], given: 3

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

Show Tags

New post 17 Jul 2010, 01:32
A makes clear why govt tried 2 boost prices.
there4 A it is
_________________

consider cudos if you like my post

Kudos [?]: 34 [0], given: 3

Senior Manager
Senior Manager
avatar
Status: Yeah well whatever.
Joined: 18 Sep 2009
Posts: 340

Kudos [?]: 83 [0], given: 17

Location: United States
GMAT 1: 660 Q42 V39
GMAT 2: 730 Q48 V42
GPA: 3.49
WE: Analyst (Insurance)
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 17 Jul 2010, 07:00
I'm glad we agree.
_________________

He that is in me > he that is in the world. - source 1 John 4:4

Kudos [?]: 83 [0], given: 17

Director
Director
User avatar
Joined: 21 Dec 2010
Posts: 618

Kudos [?]: 297 [0], given: 51

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

Show Tags

New post 29 Apr 2011, 07:01
yes A is in fact strong . but only under constraints. D is weaker and less clear than A
_________________

What is of supreme importance in war is to attack the enemy's strategy.

Kudos [?]: 297 [0], given: 51

Manager
Manager
avatar
Joined: 07 Dec 2010
Posts: 110

Kudos [?]: 42 [0], given: 12

Concentration: Marketing, General Management
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 08 Jun 2011, 20:06
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.

Kudos [?]: 42 [0], given: 12

Senior Manager
Senior Manager
User avatar
Status: 750+ or Burst !
Joined: 01 May 2011
Posts: 384

Kudos [?]: 139 [0], given: 26

Location: India
Concentration: General Management, Strategy
GMAT 1: 670 Q48 V35
GPA: 3.5
GMAT ToolKit User
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 08 Jun 2011, 20:57
ruturaj wrote:
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.
First of all piece of advice, DONOT EVER doubt the OG explanations and answers. OG is the bible and we do not question the bible!

The question is Resolve the paradox

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. Resolves the paradox by saying that when the prices increase the tax revenue of the gov. will also increase covering up in the budget
(B) Cotton production in several counties other than Q declined slightly the year that the support-payment program went into effect in Q.Out of scope
(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.Doesnt resolve the paradox
(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. Even if it were less, doesnt explain how gov. will be able to adjust
(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.

_________________

GMAT done - a mediocre score but I still have a lot of grit in me

The last 20 days of my GMAT journey

Kudos [?]: 139 [0], given: 26

Manager
Manager
avatar
Joined: 07 Dec 2010
Posts: 110

Kudos [?]: 42 [0], given: 12

Concentration: Marketing, General Management
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 09 Jun 2011, 10:34
Please explain more

Kudos [?]: 42 [0], given: 12

Senior Manager
Senior Manager
User avatar
Status: 750+ or Burst !
Joined: 01 May 2011
Posts: 384

Kudos [?]: 139 [0], given: 26

Location: India
Concentration: General Management, Strategy
GMAT 1: 670 Q48 V35
GPA: 3.5
GMAT ToolKit User
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 09 Jun 2011, 22:09
ruturaj wrote:
Please explain more


You did not understand which part?
_________________

GMAT done - a mediocre score but I still have a lot of grit in me

The last 20 days of my GMAT journey

Kudos [?]: 139 [0], given: 26

Manager
Manager
User avatar
Joined: 28 Feb 2011
Posts: 80

Kudos [?]: 41 [0], given: 2

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

Show Tags

New post 04 Jul 2011, 07:55
A..nice question
_________________

Fight till you succeed like a gladiator..or doom your life which can be invincible

Kudos [?]: 41 [0], given: 2

Intern
Intern
avatar
Joined: 02 Nov 2009
Posts: 21

Kudos [?]: [0], given: 2

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

Show Tags

New post 04 Jul 2011, 07:58
Good question !! will go with a as well

Kudos [?]: [0], given: 2

Intern
Intern
avatar
Joined: 03 Mar 2010
Posts: 44

Kudos [?]: 3 [0], given: 59

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

Show Tags

New post 08 Sep 2011, 05:02
onedayill wrote:
seekmba wrote:
my pick is (B)
i will also go for A.




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.



A

Please see the below demonstration:

Paraphrasing;
Gov will fund the farmers who will produce only on 75% of their land to boost the cotton prices.

Fact:
1) cotton production is very high so cotton prices falling.

We have to balance this:

Budget - fund == Budget + ??

Either we can prove fund --> 0
or some other factor might be added to budget,so that it will not be a burden on gov.

I found only A and D were appealing. A is much more stronger explanation than D.

Kudos [?]: 3 [0], given: 59

Manager
Manager
avatar
Joined: 15 Nov 2010
Posts: 103

Kudos [?]: 3 [0], given: 15

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

Show Tags

New post 08 Sep 2011, 10:42
TomB wrote:
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



A

Kudos [?]: 3 [0], given: 15

Senior Manager
Senior Manager
avatar
Joined: 12 Oct 2011
Posts: 251

Kudos [?]: 68 [0], given: 110

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

Show Tags

New post 26 Dec 2011, 01:23
Even I was pretty baffled by this one from the OG. Very confusing. Is it that we have to assume the contrapositive of option A to get the paradox resolved? I mean A just says that lower cotton prices indicate operating losses for cotton farmers and that the government loses revenue because of lower cotton prices.
Thus, do we have to assume that the price of cotton will inevitably increase after the government introduces the "direct support payments" program? Only then can we say that the governmental revenues will start increasing as cotton prices start increasing.
I felt it is a far leap.
I am not at all doubting the OA and OG. I am just trying to understand the logic to get the solution to this problem. Any help would be appreciated. TIA.

Kudos [?]: 68 [0], given: 110

Manager
Manager
User avatar
Joined: 07 Aug 2011
Posts: 168

Kudos [?]: 24 [0], given: 6

Location: United States
Concentration: Technology, International Business
GMAT 1: 690 Q48 V37
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 26 Dec 2011, 10:12
A
So government will pay money to farmer to stop producing cotton and still will make money from cotton farmer .
So we need to find how
A sounds like a plan
B out of context
C same how will government make money
Same with D and E no reason is given on how will government make up for the loss in revenue

Kudos [?]: 24 [0], given: 6

Manager
Manager
avatar
Joined: 25 Nov 2011
Posts: 247

Kudos [?]: 249 [0], given: 20

Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 16 Jan 2012, 09:11
+1 for A.

Some of the words in the argument confused me. But the word 'budget' in question seems to link to the option A only. So, my vote for A!
_________________

-------------------------
-Aravind Chembeti

Kudos [?]: 249 [0], given: 20

Senior Manager
Senior Manager
User avatar
Joined: 15 Sep 2009
Posts: 263

Kudos [?]: 78 [0], given: 6

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

Show Tags

New post 06 Jul 2012, 07:50
+1 A.

The government hopes to nullify revenue losses with this buy-back Plan.

Posted from my mobile device
_________________

+1 Kudos me - I'm half Irish, half Prussian.

Kudos [?]: 78 [0], given: 6

Manager
Manager
avatar
Joined: 14 Jun 2012
Posts: 64

Kudos [?]: 16 [0], given: 1

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

Show Tags

New post 12 Sep 2012, 02:06
This one took close to 2 mins for me. I chose A though.

For the government's move to not be a burden the relief value offered to the farmers should be less than the total profit lost due to falling prices of cotton. Statement A seems the closest to this reasoning, hence chose A.

Good question.
_________________

My attempt to capture my B-School Journey in a Blog : tranquilnomadgmat.blogspot.com

There are no shortcuts to any place worth going.

Kudos [?]: 16 [0], given: 1

Intern
Intern
avatar
Joined: 27 Jan 2013
Posts: 13

Kudos [?]: 9 [0], given: 36

Location: India
Concentration: Strategy, Finance
GMAT 1: 660 Q46 V35
GPA: 3.6
WE: Business Development (Energy and Utilities)
Re: The cotton farms of Country Q became so productive that the market cou [#permalink]

Show Tags

New post 14 Mar 2013, 22:05
E is the best option here.
If the farmers can use the cotton acreage for any other crop, it is certain that they would use this land for production cotton with the money incentive rather than keeping the land w/o any crops.

Kudos [?]: 9 [0], given: 36

Re: The cotton farms of Country Q became so productive that the market cou   [#permalink] 14 Mar 2013, 22:05

Go to page   Previous    1   2   3   4   5    Next  [ 94 posts ] 

Display posts from previous: Sort by

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.