Kernland blank assumption

This topic has expert replies
Senior | Next Rank: 100 Posts
Posts: 44
Joined: Sat Oct 27, 2012 11:12 am
Followed by:1 members

Kernland blank assumption

by szDave » Wed Jan 23, 2013 4:07 am
Which of the following, if true, most logically completes the reasoning in the passage?

Kerniand's government restricts the export of unprocessed cashew nuts in order to ensure a low-cost supply for domestic processing plants. Though the policy constrains farm income and limits the number of farmers who can profitably grow cashews, the government defends it on the grounds that, since the processing plants are in urban areas, removing the restrictions would hurt efforts to reduce urban unemployment. However, the policy may actually have contributed to urban unemployment, since ______.

a) a lack of profitable crops Is drIvIng many small cashew farmers In Kernland off theIr land and Into the cities

b) some of the by-products of cashew processing are used as raw materials by other Industries located In Kernland's cities

c) the government does not place similar restrictions on the export of any crop other than cashews

d) the Income earned by workers In the processing plants Is generally greater than that earned by agricultural laborers In rural areas

e) without governmental aId In some form, Kernland's cashew processing plants would not be able tie compete for sales In world markets

My analysis:

Conclusion: Kernland's government restricts the export of unprocessed cashew nuts in order to ensure a low-cost supply for domestic processing plants.

Premise against: Though the policy constrains farm income and limits the number of farmers who can profitably grow cashews,

Premise for: the government defends it on the grounds that, since the processing plants are in urban areas, removing the restrictions would hurt efforts to reduce urban unemployment.

Premise against the policy
: However, the policy may actually have contributed to urban unemployment, since ...

Question is about supporting the view, that the policy leads to urban UE.

Correct answer is E, because if they are not able to compete in the world markets, without aid, that means that they are unprofitable they only employ the minimum number of workers.

Is answer E correct, if not why?
Last edited by szDave on Wed Jan 23, 2013 9:36 am, edited 1 time in total.

Senior | Next Rank: 100 Posts
Posts: 78
Joined: Wed Jan 09, 2013 5:03 am
Thanked: 9 times
Followed by:4 members
GMAT Score:700

by shenoydevika » Wed Jan 23, 2013 6:24 am
I think the right answer is A

Since the farmers are incurring losses, they are being forced to move to the cities adding to the number of unemployed in the city.

User avatar
GMAT Instructor
Posts: 2193
Joined: Mon Feb 22, 2010 6:30 pm
Location: Vermont and Boston, MA
Thanked: 1186 times
Followed by:512 members
GMAT Score:770

by David@VeritasPrep » Wed Jan 23, 2013 7:02 am
Shenoydevika is right. The answer is A.

Wow! This is a funky version of another question. Someone has taken a weaken question and turned it into this assumption question above.

I suggest that you follow this link and try this other version of the question. The answer is not the same letter but it is the same wording of the answer. https://www.beatthegmat.com/gmatprep-exp ... 85658.html

There is a full explanation of the logic at the link above.
Veritas Prep | GMAT Instructor

Veritas Prep Reviews
Save $100 off any live Veritas Prep GMAT Course