[amp_mcq option1=”Make inputs affordable” option2=”Reduce production costs” option3=”Provide price support” option4=”All of the above” correct=”option4″]
The correct answer is: D) All of the above
Agricultural subsidies are payments made by governments to farmers, usually in the form of direct payments or tax breaks. They are designed to support farmers’ incomes, stabilize agricultural markets, and protect consumers from high food prices.
Subsidies can make inputs affordable by reducing the cost of things like seeds, fertilizer, and equipment. They can also reduce production costs by providing farmers with a guaranteed price for their crops. This can help farmers to stay in business even when prices are low.
Subsidies can also provide price support by buying up surplus crops and storing them or selling them overseas. This helps to keep prices high enough for farmers to make a profit.
In conclusion, agricultural subsidies can be used to achieve a variety of goals, including making inputs affordable, reducing production costs, and providing price support.