BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Cotton farms

Expert replies
by fighting_cax » Fri May 15, 2009 9:59 pm
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.

OA is A

Please explain.
Join the discussion
Source: — Critical Reasoning |

Re: Cotton farms

by Minheequang » Fri May 15, 2009 11:17 pm
Yes, I choose A
The plan will be successful for the purpose of maintaining the government budget. Why will this happen ? because although the government have to support the farmers an amount of money, it can offset this loss of budget by the enhancement of tax revenues from the increase of cotton price -->that's the point

Another choices have no support for the success of the plan
Join the discussion

by sanp_l » Sat May 16, 2009 12:34 am
Lets go botttoms up. :)

Whether farmers grow some other crops or not has got nothing to do with the context being discussed. E can be scratched away.

Even if the payments would be less for larger farms and more for smaller farms, for the government, it doesn't say anything about the net amount and if it would be a burden for the government or not. Hence certainly not D.

Option C speaks of volumes and cotton acreage thus staying numb about the burden aspect for the government. Not C.

Cotton production of other countries doen't have any direct effect on the context concerned. Not B.

Option A describes an effect mechanism and the way government can earn revenues. If this is the case, we have an explanation of how the direct support payments plan might not have an impact on the budget. Hence A.
Sandy
Join the discussion

by Brad.C » Sun May 15, 2016 6:54 am
I'd say A, but I'm afraid more because of my intuition than any logic.
Join the discussion