The price-support strategy exacerbated which of the following problems?Multiple choice question.The hazardous conditions faced by agricultural workersThe presence of too many farmers in the marketThe inability of consumers to afford agricultural productsThe low prices farmers received for their output
Question
The price-support strategy exacerbated which of the following problems?Multiple choice question.The hazardous conditions faced by agricultural workersThe presence of too many farmers in the marketThe inability of consumers to afford agricultural productsThe low prices farmers received for their output
Solution
The price-support strategy would most likely exacerbate "The low prices farmers received for their output".
Here's why:
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A price-support strategy is a policy where the government intervenes in the market to try and keep the prices of a product or commodity at a certain level.
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This is often done in the agricultural sector to protect farmers from price fluctuations and ensure they receive a minimum income for their produce.
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However, while this strategy can provide short-term relief for farmers, it can exacerbate the problem of low prices in the long run.
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This is because by artificially keeping prices high, it can lead to overproduction as farmers are encouraged to produce more than the market demands.
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This overproduction can then lead to a surplus of the product in the market, which can cause prices to fall even further when the government support is removed.
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Therefore, the price-support strategy can exacerbate the problem of low prices 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.
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
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
Which of the following summarizes the economics of price supports?Multiple choice question.Variable pricing above equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.Fixed pricing above equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.Fixed pricing at equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.Fixed pricing below equilibrium prices on farm products aids in achieving parity between prices received and paid by farmers for farm products.
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