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A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.
Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?
  • a)
    Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.
  • b)
    Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.
  • c)
    Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.
  • d)
    Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.
  • e)
    Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
A severe drought can actually lessen the total amount of government ai...
Let's go through each answer choice and evaluate them:
(A) Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.
This answer choice suggests that the government had already increased the target price for crops before the drought hit. If this were true, it would actually imply that farmers would receive more government aid, not less, since the market price would be more likely to fall short of the higher target price. Therefore, this answer choice does not explain the reduction in farm-program payments and can be eliminated.
(B) Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.
This answer choice suggests that the reduction in farm-program payments was due to a decrease in food exports by farmers. However, there is no direct connection between reduced food exports and the farm-program payments. It is possible that the reduction in exports could have had some economic impact, but it does not directly explain the reduction in farm-program payments. Therefore, this answer choice is not the best explanation and can be eliminated.
(C) Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.
This answer choice provides a plausible explanation. If farmers had smaller harvests due to the drought, the reduced supply of crops would lead to higher market prices. Since farm-program payments are based on the difference between the market price and the target price, a higher market price would result in a smaller shortfall and, consequently, a reduction in farm-program payments. This answer choice provides a logical explanation and matches the information given in the question. Therefore, (C) is the best explanation.
(D) Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.
This answer choice discusses farmers' plans for future crops but does not directly explain the reduction in farm-program payments in 1983. The question specifically asks for an explanation of the reduction in payments that occurred in 1983, so this answer choice is not relevant and can be eliminated.
(E) Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.
This answer choice presents information about retail prices for food but does not provide a clear explanation for the reduction in farm-program payments. The question focuses on the impact of the drought on farm-program payments, not on retail prices. Therefore, this answer choice does not explain the reduction in payments and can be eliminated.
In conclusion, based on the given information and the analysis of the answer choices, the best explanation for the reduction in farm-program payments during the drought of 1983 is (C) - Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.
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A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer?
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A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer?.
Solutions for A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
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The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A severe drought can actually lessen the total amount of government aid that United States farmers receive as a group. The government pays farmers the amount, if any, by which the market price at which crops are actually sold falls short of a preset target price per bushel for the crops. The drought of 1983, for example, caused farm-program payments to drop by $10 billion.Given the information above, which of the following, if true, best explains why the drought of 1983 resulted in a reduction in farm-program payments?a)Prior to the drought of 1983, the government raised the target price for crops in order to aid farmers in reducing their debt loads.b)Due to the drought of 1983, United States farmers exported less food in 1983 than in the preceding year.c)Due to the drought of 1983, United States farmers had smaller harvests and thus received a higher market price for the 1983 crop than for the larger crop of the preceding year.d)Due to the drought of 1983, United States farmers planned to plant smaller crops in 1984 than they had in 1983.e)Despite the drought of 1983, retail prices for food did not increase significantly between 1982 and 1983.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
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