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Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.
Q. The Canadian 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?
Q. The Canadian 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)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.
- b)Wheat production in several countries declined the year that the compensation program went into effect in Canada
- c)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.
- d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farms
- e)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.
Correct answer is option 'A'. Can you explain this answer?
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Canadian wheat farmers produced so much wheat over the last season tha...
The program will not be a net burden on the budget because money spent on compensation can be made up by money collected through taxation of the farms
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Canadian wheat farmers produced so much wheat over the last season tha...
Explanation:
Impact on Farm Profits:
- If prices were allowed to remain low, farms would operate at a loss.
- This would cause the government to lose tax revenue on farm profits.
Government's Objective:
- The government's objective is to boost wheat prices by reducing the supply in the market.
- By offering compensation to farmers who agree not to harvest a portion of their wheat fields, the government can achieve this objective without incurring a net burden on the budget.
Compensation Program:
- The compensation program incentivizes farmers to reduce their wheat production.
- This reduction in supply would help increase wheat prices in the market.
Tax Revenue:
- If farms continue to operate at a loss due to low wheat prices, the government would lose tax revenue on farm profits.
- By boosting wheat prices through the compensation program, farms can operate profitably, leading to increased tax revenue for the government.
Therefore, option 'A' is the best basis for an explanation of how the Canadian government's program will not be a net burden on the budget.
Impact on Farm Profits:
- If prices were allowed to remain low, farms would operate at a loss.
- This would cause the government to lose tax revenue on farm profits.
Government's Objective:
- The government's objective is to boost wheat prices by reducing the supply in the market.
- By offering compensation to farmers who agree not to harvest a portion of their wheat fields, the government can achieve this objective without incurring a net burden on the budget.
Compensation Program:
- The compensation program incentivizes farmers to reduce their wheat production.
- This reduction in supply would help increase wheat prices in the market.
Tax Revenue:
- If farms continue to operate at a loss due to low wheat prices, the government would lose tax revenue on farm profits.
- By boosting wheat prices through the compensation program, farms can operate profitably, leading to increased tax revenue for the government.
Therefore, option 'A' is the best basis for an explanation of how the Canadian government's program will not be a net burden on the budget.
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Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer?
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Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer?.
Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
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Here you can find the meaning of Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Canadian wheat farmers produced so much wheat over the last season that wheat prices plummeted. The government tried to boost wheat prices by offering farmers who agreed not to harvest 20 percent of their wheat field compensation up to a specified maximum per farm.Q. The Canadian government's program, if successful, will not be a net burden on thebudget. Which of the following, if true, is the best basis for an explanation of how this could be so?a)If prices were allowed to remain low, the farms would be operating at a loss, causing the government to lose tax revenue on farm profits.b)Wheat production in several countries declined the year that the compensation program went into effect in Canadac)The first year that the compensation program was in effect, wheat acreage in Canada was 5% below its level in the base year for the program.d)The specified maximum per farm meant that for very large wheat farms the compensation was less per acre for those acres than they were for smaller farmse)Farmers who wished to qualify for compensation program could not use the land not harvested for wheat to grow another crop.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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