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Difficulty: MediumCause and Effect Reasoning

Analyze the following two recent developments in the agricultural sector to determine their logical connection:

Development 1: The federal agricultural board introduced a guaranteed bulk-purchase scheme at premium rates exclusively for drought-resistant coarse grains.
Development 2: The total farming area allocated to water-intensive cash crops in the semi-arid northern districts has declined by approximately thirty percent this season.

Which of the choices accurately reflects the causal dynamic between these two developments?

  1. Development 1 is the primary cause and Development 2 is its logical effect.Answer
  2. B
    Development 2 is the primary cause and Development 1 is its logical effect.
  3. C
    Both developments are independent causes triggered by unrelated factors.
  4. D
    Both developments are independent effects of separate, unrelated causes.
  5. E
    Both developments are effects stemming from a single common cause.

Answer

Development 1 is the primary cause and Development 2 is its logical effect.
The correct response accurately maps the economic principle of substitution. When a government agency introduces a highly favorable financial scheme for a specific type of crop (Development 1), it logically drives farmers to dedicate more land to that crop. Given finite farming land, this directly causes a reduction in the acreage of competing, less incentivized crops (Development 2).

Step-by-Step Solution

1
Analyze the nature of Development 1
Identified as a government policy intervention offering financial incentives (premium rates and bulk purchase) for growing coarse grains.
Understanding the policy helps determine its intended economic impact on farming behavior.
2
Analyze the nature of Development 2
Identified as a behavioral shift among farmers, specifically a significant reduction in the planting of water-intensive cash crops.
To establish whether this shift is an independent event or a reaction to an external stimulus.
3
Evaluate the logical and temporal linkage between the two developments
Farmers rationally substitute water-intensive crops for coarse grains to take advantage of the new premium purchase scheme. Therefore, the policy (Development 1) directly triggered the reduction in other crop areas (Development 2).
Economic incentives in agriculture directly cause shifts in crop acreage allocation.

Key Concept

Cause and Effect Reasoning
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Topics

Cause and Effect Reasoning

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