Question

Prolonged spells of hot, dry weather at the end of the grape-growing season typically reduce a vineyard’s yield, because the grapes stay relatively small. In years with such weather, wine producers can make only a relatively small quantity of wine from a given area of vineyards. Nonetheless, in regions where wine producers generally grow their own grapes, analysts typically expect a long, hot, dry spell late in the growing season to result in increased revenues for local wine producers. Which of the following, if true, does most justify the analysts’ expectation?

• A. The lower a vineyard’s yield, the less labor is required to harvest the grapes.
• B. Long, hot, dry spells at the beginning of the grape-growing season are rare, but they can have a devastating effect on a vineyard’s yield.
• C. Grapes grown for wine production are typically made into wine at or near the vineyard in which they were grown.
• D. When hot, dry spells are followed by heavy rains, the rains frequently destroy grape crops.
• E. Grapes that have matured in hot, dry weather make significantly better wine than ordinary grapes.

Hint:

When evaluating economic expectations, focus on how local conditions impact the production and sale of goods, especially when local production adds value.

Answer 1

The Correct Option is C

Step 1: Understanding the analysts’ expectation.
The analysts expect that a prolonged dry spell will increase revenues for local wine producers. This expectation makes sense if the wine made from grapes grown in the local vineyard is more valuable than the wine made from grapes grown elsewhere.
Step 2: Analyzing the options.
- (A) This is not relevant to the analysts' expectation. The amount of labor required does not directly influence the revenue increase expected from local wine production.
- (B) This does not support the analysts’ expectation, as it discusses the rare effect of early dry spells, not late-season dry spells.
- (C) This is the correct answer. If grapes grown locally are typically made into wine locally, the increase in the quantity of wine made from local grapes would contribute to higher local revenues.
- (D) This contradicts the premise of the question, as it talks about the negative effects of heavy rain, which is not the focus of the analysts’ expectation.
- (E) While this could affect the quality of the wine, the focus of the passage is on local wine production, not the quality of the wine itself.
Step 3: Conclusion.
The correct answer is (C), as it directly supports the analysts’ expectation that local wine production will result in increased revenues during dry spells.