The government intervention in agriculture usually involves price supports in order to keep farm incomes high. Here's a step-by-step explanation:

1. Price supports: These are minimum prices set by the government for agricultural products to ensure that farmers receive a certain income level. This is done to stabilize the agricultural market and protect farmers from price fluctuations and uncertainties.

2. Purpose of price supports: The main purpose of price supports is to keep farm incomes high. By guaranteeing a minimum price for crops, the government ensures that farmers can cover their costs and make a profit, which helps to maintain a stable agricultural sector.

3. Other forms of intervention: While the government can also use other methods to intervene in the agricultural sector, such as import controls or export subsidies, these are not typically used to support farm incomes directly. Instead, they are used to protect domestic agriculture from foreign competition or to promote exports.

4. Price ceilings: These are maximum prices set by the government, above which a good or service cannot be sold. They are typically used to keep prices of essential goods and services affordable for consumers. However, in the context of agriculture, price ceilings are not usually used as they can discourage production if set too low.

So, the correct answer is "Price supports in order to keep farm incomes high".

Question

The government intervention in agriculture usually involves price supports in order to keep farm incomes high. Here's a step-by-step explanation:

1. Price supports: These are minimum prices set by the government for agricultural products to ensure that farmers receive a certain income level. This is done to stabilize the agricultural market and protect farmers from price fluctuations and uncertainties.

2. Purpose of price supports: The main purpose of price supports is to keep farm incomes high. By guaranteeing a minimum price for crops, the government ensures that farmers can cover their costs and make a profit, which helps to maintain a stable agricultural sector.

3. Other forms of intervention: While the government can also use other methods to intervene in the agricultural sector, such as import controls or export subsidies, these are not typically used to support farm incomes directly. Instead, they are used to protect domestic agriculture from foreign competition or to promote exports.

4. Price ceilings: These are maximum prices set by the government, above which a good or service cannot be sold. They are typically used to keep prices of essential goods and services affordable for consumers. However, in the context of agriculture, price ceilings are not usually used as they can discourage production if set too low.

So, the correct answer is "Price supports in order to keep farm incomes high".

Knowee AI · Accepted Answer

The government intervention in agriculture usually involves price supports in order to keep farm incomes high. Here's a step-by-step explanation:

1. Price supports: These are minimum prices set by the government for agricultural products to ensure that farmers receive a certain income level. This is done to stabilize the agricultural market and protect farmers from price fluctuations and uncertainties.

2. Purpose of price supports: The main purpose of price supports is to keep farm incomes high. By guaranteeing a minimum price for crops, the government ensures that farmers can cover their costs and make a profit, which helps to maintain a stable agricultural sector.

3. Other forms of intervention: While the government can also use other methods to intervene in the agricultural sector, such as import controls or export subsidies, these are not typically used to support farm incomes directly. Instead, they are used to protect domestic agriculture from foreign competition or to promote exports.

4. Price ceilings: These are maximum prices set by the government, above which a good or service cannot be sold. They are typically used to keep prices of essential goods and services affordable for consumers. However, in the context of agriculture, price ceilings are not usually used as they can discourage production if set too low.

So, the correct answer is "Price supports in order to keep farm incomes high".

Government intervention in agriculture usually involvesGroup of answer choicesPrice supports in order to keep farm incomes highPrice supports in order to keep agricultural imports lowPrice ceilings in order to subsidize U.S. exportsPrice ceilings in order to keep food prices

Question

Solution

Similar Questions

Upgrade your grade with Knowee