Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.
Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?
A) Wheat that is not processed for consumption is often used for certain industrial applications.
B) Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
C) The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.
D) Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.
E) The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.
OA is D
Price of Wheat
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The answer is A. Let's analyze: you need to find one that undermines the conclusion which is: American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. This in lay terms means "Supply of wheat is more than demand for wheat which is the condition created by americans".
You need a choice that shows either supply of wheat is not more than demand or somehow it was not due to americans.
A. States that the supposed wheat that author claimed is leftover (surplus) is actually not leftover, but rather is used in industrial applications. Meaning that the conclusion is undermined already by attacking supply and demand parts.
B. Actually supports the claim or leaves it untouched - if they can predict beforehand, that means that farmers shouldn't actually produce more, thus are responsible for maintaining low price.
C. and E - similar- because prices of other products are lower than wheat doesn't mean that the same cause-and-effect should be true for them - i mean here we see wrong comparison.
D - actually supports conclusion - meaning that US farmers actually overproduce so that competitors (can and russia) would not produce - thus are responsible for low global prices.
So, answer A.
You need a choice that shows either supply of wheat is not more than demand or somehow it was not due to americans.
A. States that the supposed wheat that author claimed is leftover (surplus) is actually not leftover, but rather is used in industrial applications. Meaning that the conclusion is undermined already by attacking supply and demand parts.
B. Actually supports the claim or leaves it untouched - if they can predict beforehand, that means that farmers shouldn't actually produce more, thus are responsible for maintaining low price.
C. and E - similar- because prices of other products are lower than wheat doesn't mean that the same cause-and-effect should be true for them - i mean here we see wrong comparison.
D - actually supports conclusion - meaning that US farmers actually overproduce so that competitors (can and russia) would not produce - thus are responsible for low global prices.
So, answer A.
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IMO D
Question assumes that only United States is responsible for the artificially low global price of wheat. D says that if Canada and Russia, can produce more wheat then the it weakens the argument that it is not only United States that can control wheat price in the global market.
Question assumes that only United States is responsible for the artificially low global price of wheat. D says that if Canada and Russia, can produce more wheat then the it weakens the argument that it is not only United States that can control wheat price in the global market.
Subsidies -> low price of wheatDhruvXVII wrote:Farmers in developing countries claim that the United States government, through farm subsidies, is responsible for the artificially low global price of wheat. Because the U.S. government buys whatever wheat American farmers are unable to sell on the open market, American farmers have no incentive to modulate the size of their crops according to the needs of the global market. As a result, American farmers routinely produce more wheat than the global market can absorb and the global price of wheat is kept low. Without these subsidies, the farmers in developing economies claim, American farmers would produce only the amount of wheat that they could sell on the open market and the global price of wheat would rise.
Which of the following, if true, most weakens the claims of the farmers in developing countries regarding the price of wheat?
A) Wheat that is not processed for consumption is often used for certain industrial applications.
B) Non-governmental buyers of wheat and wheat products are able to predict how much wheat they will need several years in advance.
C) The United States government offers similar subsidies to soybean farmers, though the global price of soybeans is significantly higher than that of wheat.
D) Other countries, such as Canada and Russia, are likely to produce more wheat if the United States were to reduce its output.
E) The price of sorghum, a crop for which the United States government offers no subsidies, is lower than that of wheat.
OA is D
IMO C even if subsidies are removed, the other countries will provide wheat prices won't rise.