Under the agricultural policies of Country R, farmers can sell any grain not sold on the open market to a grain board at guaranteed prices. It seems inevitable that, in order to curb the resultant escalating overproduction, the grain board will in just a few years have to impose quotas on grain production, limiting farmers to a certain flat percentage of the grain acreage they cultivated previously.
Suppose an individual farmer in Country R wishes to minimize the impact on profits of the grain quota whose eventual imposition is being predicted. If the farmer could do any of the following and wants to select the most effective course of action, which should the farmer do now?
A. Select in advance currently less profitable grain fields and retire them if the quota takes effect.
B. Seek long-term contracts to sell grain at a fixed price.
C. Replace obsolete tractors with more efficient new ones.
D. Put marginal land under cultivation and grow grain on it.
E. Agree with other farmers on voluntary cutbacks in grain production.
OA D
Source: Official Guide
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Under the agricultural policies of Country R, farmers can
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Premise: Under the agricultural policies of country R, farmers can sell any grain not sold on the open market to a grain board at guaranteed prices.
Conclusion: The grain board will just in a few years have to impose quotas on grain production, limiting farmers to a certain flat percentage of the grain acreage they cultivated previously.
Option A - Incorrect
If true there is no tangible evidence to support the fact that this will inimise the impact on profits. Hence, this claim is baseless.
Option B - Incorrect
This opposes the argument because seeking long-term contracts to sell grain at fixed price is not sufficient to minimise the impact on the farmer's profits.
Option C - Incorrect
We are not concerned about tractors as this is not a strategy to minimize the impact on profits of the farmers' grain.
Option D - Correct
This is correct. If the farmer puts margunal land under cultivation and grow grain on it, this would minimize the impact on profits of the grain when the grain board imposes quota grain production.
Option E - Incorrect
This is an objection to the argument because if the grain board imposes quotas on grain production, farmers will be limited to a flat percentage generally.
Conclusion: The grain board will just in a few years have to impose quotas on grain production, limiting farmers to a certain flat percentage of the grain acreage they cultivated previously.
Option A - Incorrect
If true there is no tangible evidence to support the fact that this will inimise the impact on profits. Hence, this claim is baseless.
Option B - Incorrect
This opposes the argument because seeking long-term contracts to sell grain at fixed price is not sufficient to minimise the impact on the farmer's profits.
Option C - Incorrect
We are not concerned about tractors as this is not a strategy to minimize the impact on profits of the farmers' grain.
Option D - Correct
This is correct. If the farmer puts margunal land under cultivation and grow grain on it, this would minimize the impact on profits of the grain when the grain board imposes quota grain production.
Option E - Incorrect
This is an objection to the argument because if the grain board imposes quotas on grain production, farmers will be limited to a flat percentage generally.
