ECONOMICS (CBSE/UGC NET)

ECONOMICS

SUPPLY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is one reason governments give farmers subsidies?
A
to keep food supplies up
B
to help farmers pay back their personal debts
C
to increase the cost of production
D
to help people forget past shortages
Explanation: 

Detailed explanation-1: -An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Detailed explanation-2: -Basically, subsidies are provided by the government to specific industries with the aim of keeping the prices of products and services low for people to be able to afford them and also to encourage production and consumption.

Detailed explanation-3: -A subsidy is a kind of incentive that the government gives to farmers with a view to: Help supplement their income. Give them options for purchase of various agriculture inputs. Encourage them to adopt new plans and policies.

There is 1 question to complete.