ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tariff
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Embargo
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Quota
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Standard
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Subsidy
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Detailed explanation-1: -Status of Funds Each year federal agencies receive funding from Congress, known as budgetary resources . In FY 2023, the Department of Agriculture (USDA) had $348.23 Billion distributed among its 22 sub-components. Agencies spend available budgetary resources by making financial promises called obligations .
Detailed explanation-2: -Subsidies to the farmers are also given as part of various other schemes such as National Food Security Mission (NFSM), Mission for Integrated Development of Horticulture (MIDH), Rashtriya Krishi Vikas Yojana (RKVY) and Paramparagat Krishi Vikas Yojana (PKVY) etc for the benefits of the farmers.
Detailed explanation-3: -The Agricultural Adjustment Act (AAA) was a United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses. The government bought livestock for slaughter and paid farmers subsidies not to plant on part of their land.
Detailed explanation-4: -As a result, only large producers can take advantage of farm subsidies. Out of all the crops that farmers grow, the government subsidizes only five of them. 1 They are corn, soybeans, wheat, cotton, and rice.