he price-support strategy exacerbated which of the following problems?Multiple choice question.The presence of too many farmers in the marketThe inability of consumers to afford agricultural productsThe hazardous conditions faced by agricultural workersThe low prices farmers received for their output
Question
he price-support strategy exacerbated which of the following problems?Multiple choice question.The presence of too many farmers in the marketThe inability of consumers to afford agricultural productsThe hazardous conditions faced by agricultural workersThe low prices farmers received for their output
Solution
The price-support strategy likely exacerbated the problem of "The low prices farmers received for their output".
Here's why:
-
Price support strategies are typically implemented to ensure that farmers receive a minimum price for their products. This is done to protect farmers from fluctuations in the market that could cause the prices of their products to drop significantly.
-
When a price support is in place, the government typically agrees to purchase any surplus of a product at a set price. This ensures that farmers receive a certain amount of money for their products, regardless of the market price.
-
However, this can lead to overproduction, as farmers have a guaranteed buyer for their products. This overproduction can then lead to a surplus of the product in the market.
-
When there is a surplus of a product in the market, the price of that product typically drops. This is because the supply of the product exceeds the demand for it.
-
Therefore, while the price support strategy ensures that farmers receive a certain amount for their products, it can also lead to overproduction and a drop in market prices. This can exacerbate the problem of low prices that farmers receive for their output.
Similar Questions
Multiple Select QuestionSelect all that applyHow did the price-support strategy in agriculture treat the symptoms and not the causes of the farm problem?Multiple select question.Price and income supports slowed the reallocation of resources from farming to nonfarm occupations.The price-support strategy hastened the reallocation of resources necessary to resolve the long-run farm problem of too many farms.Price and income supports encouraged people to stay in farming rather than move to nonfarm occupations.Price and income supports allocate too few resources to the farming sector.
Farmers in more developed and less developed countries share which of the following problems?Group of answer choiceslack of equipmentsurplus productionaccess to fertilizerslimited profitabilitythe declining importance of world markets
Multiple Choice QuestionWhich of the following suggests that farmers should obtain a constant ratio of the prices they receive for their farm products and the prices they pay for goods and services in general?Multiple choice question.An annual farm subsidyThe price-support systemThe parity conceptAn imposed price floor
Multiple Choice QuestionWhich of the following has failed to keep pace with technologically created increases in the supply of farm products?Multiple choice question.PricesGrowth in the demand for farm productsDecreases in the demand for farm productsGrowth in the elasticity for farm products
Price controls are most likely to be instituted in which of the following situations?Aduring times of economic depression in the national economyBas consumer tastes changeCas imports of a basic good from abroad increase competitionDwhen a basic good such as wheat is affected by natural disaster to the point of scarcity
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.