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Difficulty: MediumPassage Assumptions and Underlying Premises

Read the following passage carefully:

To mitigate climate-induced crop failures and enhance income stability among smallholder farmers in semi-arid regions, the state agriculture department has launched a subsidized distribution program for climate-resilient native seed varieties. The policy framework aims to replace high-yield hybrid crops with traditional drought-tolerant strains to insulate rural households from total yield loss during prolonged dry spells. Opponents argue that native seeds command lower market prices per quintal, potentially reducing gross seasonal revenue even if crops survive. Nevertheless, state planners assert that the lower input costs of native seeds—which require minimal chemical fertilizers and synthetic pesticides—will ensure higher net profit margins for smallholders compared to expensive hybrid cultivation. Therefore, the planners conclude that adopting native seeds is an economically superior strategy for vulnerable farming households.

Which one of the following underlying assumptions is essential for the state planners' conclusion to hold true?

  1. The cost savings derived from reduced inputs and prevented crop losses are sufficient to offset the lower market price per quintal of native grains.Answer
  2. B
    Smallholder farmers in semi-arid regions currently allocate the majority of their operational budgets to purchasing synthetic fertilizers.
  3. C
    Hybrid crop varieties are entirely unsuitable for cultivation in semi-arid agricultural zones.
  4. D
    Market demand and wholesale prices for native grain varieties will rise significantly in urban commercial markets in the near future.

Answer

The essential underlying assumption is that the savings achieved from reduced input costs and avoided crop losses will outweigh the reduced revenue caused by lower market prices per quintal of native grains.
The conclusion asserts that native seeds provide higher net profit margins despite fetching lower market prices per quintal. For net profit (Revenue minus Costs) to be higher when Revenue per unit decreases, the reduction in Costs (plus risk mitigation) MUST be greater than the loss in Revenue. Therefore, assuming that input cost savings offset lower market prices is logically mandatory for the conclusion to hold.

Step-by-Step Solution

1
Identify the author's main conclusion and supporting premises.
Conclusion: Adopting native seeds is economically superior due to higher net profit margins. Premises: Native seeds have lower market prices per quintal (negative factor), but lower input costs and drought protection (positive factor).
An assumption is an unstated link connecting the stated premises to the final conclusion.
2
Apply the Negation Test to evaluate candidate assumptions.
Negate the core assumption: 'The cost savings from lower inputs do NOT offset the lower market price per quintal.' If this negation is true, net profit margins cannot be higher, which directly invalidates the planners' conclusion.
If negating a statement destroys the argument's validity, that statement is a necessary underlying assumption.

Key Concept

Identifying Unstated Premises via the Negation Test
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Topics

Passage Assumptions and Underlying Premises

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