Critical Reasoning

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per farm meant that for very large cotton farms the support payments were less per acre for those acres that were withdrawn from production than they were for smaller farms.
(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn from production to grow any other crop.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.

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

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.

I'd say A, but I'm afraid more because of my intuition than any logic.