Economist: Paying extra for fair-trade coffeeandmdash;coffee labeled with the Fairtrade logoandmdash;is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer?

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To evaluate the strength of the economist's argument, it would be the most helpful to know which of the following?

a)
Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers' profits
b)
What proportion of coffee farmers in developing nations produce fair-trade coffee
c)
Whether many coffee farmers in developing nations also derive income from other kinds of farming
d)
Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmers
e)
How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmers

Correct answer is option 'B'. Can you explain this answer?

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Economist: Paying extra for fair-trade coffee—coffee labeled wit...

Let's analyze each answer choice to determine which one would be most helpful in evaluating the argument:

(A) Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers' profits.

This answer choice addresses the potential negative impact on non-fair-trade coffee farmers' profits due to increased average prices. However, it does not directly evaluate the strength of the economist's argument. It focuses on finding a solution rather than assessing the argument itself. Therefore, this answer choice is not the most helpful in evaluating the economist's argument.

(B) What proportion of coffee farmers in developing nations produce fair-trade coffee.

This answer choice is relevant to the economist's argument as it provides information about the extent of fair-trade coffee production among coffee farmers in developing nations. If a significant proportion of farmers produce fair-trade coffee, it supports the economist's claim that paying extra for fair-trade coffee may have negative consequences for non-fair-trade coffee farmers. Therefore, this information would be helpful in evaluating the strength of the economist's argument.

(C) Whether many coffee farmers in developing nations also derive income from other kinds of farming.

This answer choice explores whether coffee farmers in developing nations have alternative sources of income. While this information may be interesting, it does not directly address the central claim made by the economist. It does not evaluate whether paying extra for fair-trade coffee hurts more farmers than it helps. Hence, this answer choice is less relevant to evaluating the strength of the argument.

(D) Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmers.

This answer choice introduces a normative perspective on whether consumers should pay extra for fair-trade coffee. While this ethical consideration is important, it does not directly evaluate the strength of the economist's argument. It focuses on the subjective question of what consumers "should" do, rather than assessing the impact of fair-trade coffee on farmers. Therefore, this answer choice is not the most helpful in evaluating the argument.

(E) How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmers.

This answer choice seeks to find a solution to the problem posed by the economist's argument. While the information may be useful in developing strategies, it does not evaluate the economist's argument itself. It focuses on finding a way to help fair-trade coffee farmers without negatively impacting non-fair-trade coffee farmers. Therefore, this answer choice is not the most helpful in evaluating the argument.

In conclusion, the most helpful answer choice in evaluating the strength of the economist's argument is (B) What proportion of coffee farmers in developing nations produce fair-trade coffee.

Answered by Talent Skill Learning · View profile

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Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer?

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Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. 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 Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer?.

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This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. 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This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Economist: Paying extra for fair-trade coffee—coffee labeled with the Fairtrade logo—is intended to help poor farmers, because they receive a higher price for the fair-trade coffee they grow. But this practice may hurt more farmers in developing nations than it helps. By raising average prices for coffee, it encourages more coffee to be produced than consumers want to buy. This lowers prices for non-fair-trade coffee and thus lowers profits for non-fair-trade coffee farmers.To evaluate the strength of the economists argument, it would be the most helpful to know which of the following?a)Whether there is a way of alleviating the impact of the increased average prices for coffee on non-fair-trade coffee farmers profitsb)What proportion of coffee farmers in developing nations produce fair-trade coffeec)Whether many coffee farmers in developing nations also derive income from other kinds of farmingd)Whether consumers should pay extra for fair-trade coffee if doing so lowers profits for non-fair-trade coffee farmerse)How fair-trade coffee farmers in developing nations could be helped without lowering profits for non-fair-trade coffee farmersCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice GMAT tests.

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