Rice is a staple crop in the country of Bhupet

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Rice is a staple crop in the country of Bhupet

by M811 » Wed May 12, 2010 7:13 pm
Rice is a staple crop in the country of Bhupet, and enough is produced each year to both meet the country's demand and be a major export. This season, however, rice yields fell 20% due to infestation by rice blast fungus. Because rice commands a somewhat higher price on the export market than the domestic market, economists warn that the Bhupet people will not be able to buy the rice they need. In order to help the local economy, therefore, the Prime Minister of Bhupet has proposed distributing state-subsidized rice coupons to each citizen.

Which of the following, if true, most strongly calls into question the likelihood that implementation of the Prime Minister's proposal will have the desired consequence?
(A) Even if the rice coupons do not allow citizens of Bhupet to consume as much rice as they do in a typical year, the existence of the coupons will help maintain general confidence in the economy.
(B) Rice distributors in Bhupet are willing to sell rice to the government at a price below the domestic market price.
(C) Rice is a fundamental component in the diet of most citizens of Bhupet, and it is their main source of vitamin B1.
(D) The exportation of rice makes up 75% of Bhupet's foreign trade and is the direct or indirect source of employment for 10% of the adult population.
(E) Not all citizens of Bhupet would require state-subsidized rice coupons to afford their usual rice intake.

[spoiler]Ans : D[/spoiler]

confused between option D and E.
Source: — Critical Reasoning |

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by saurabhmahajan » Thu May 13, 2010 3:51 am
IMO:D

since it constitutes 75% of export and 10% of employment, the prime minister's call might take some hampering.

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by Domnu » Thu May 13, 2010 6:08 am
IMO, [spoiler]D

A - if anything, helps the prime minister's proposal.
B - doesn't refute the minister's proposal.
C - out of scope
D - if the proposal is put into place, 10% of the adult population will be affected due to lower prices in their products
E - if anything, helps the prime minister's proposal... this suggests that citizens could still buy rice on their own, which doesn't devastate the local economy.[/spoiler]
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