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Analytical Ability

187. Rice is a staple crop in the country of Bhupet, and enough is produced each year to both meet the country's demand and be a major export. This season, however, rice yields fell 20% due to infestation by rice blast fungus. Because rice commands a somewhat higher price on the export market than the domestic market, economists warn that the Bhupet people will not be able to buy the rice they need. In order to help the local economy, therefore, the Prime Minister of Bhupet has proposed distributing state-subsidized rice coupons to each citizen.

Which of the following, if true, most strongly calls into question the likelihood that implementation of the Prime Minister's proposal will have the desired consequence?

(a) Even if the rice coupons do not allow citizens of Bhupet to consume as much rice as they do in a typical year, the existence of the coupons will help maintain general confidence in the economy.
(b) Rice distributors in Bhupet are willing to sell rice to the government at a price below the domestic market price.
(c) Rice is a fundamental component in the diet of most citizens of Bhupet, and it is their main source of vitamin B1.
(d) The exportation of rice makes up 75% of Bhupet's foreign trade and is the direct or indirect source of employment for 10% of the adult population.

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Detailed Solution

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