Explore key concepts about government subsidies in agriculture, focusing on financial support, eligibility, and impact. This easy quiz helps clarify how subsidies affect farming and food production.
Which of the following is a primary reason governments provide subsidies to farmers?
Explanation: The main purpose of agricultural subsidies is to stabilize food prices and ensure a steady food supply. Increasing city population and reducing education costs are unrelated to agriculture funding. Promoting luxury imports is a trade issue, not tied to agricultural subsidies.
A government pays farmers a fixed amount for each hectare of land they plant. What type of subsidy is this?
Explanation: A direct payment is financial support given directly to farmers, often based on the amount of land or specific crops. Export taxes and tariffs relate to trade, not direct farmer support. Regulations are rules rather than subsidies.
Which of these is commonly required for a farmer to become eligible for government agricultural subsidies?
Explanation: Farmers usually must meet certain production or land-use criteria to qualify for subsidies. Owning a construction company, importing food, or living in the city do not make someone eligible for agricultural subsidies.
One criticism of government farm subsidies is that they can sometimes lead to which outcome?
Explanation: Subsidies can encourage overproduction of subsidized crops, leading to surplus. Subsidies typically don't cause equipment shortages, affect gasoline prices, or directly change literacy rates.
Which of these is a common example of a subsidized agricultural product?
Explanation: Corn is frequently subsidized to support food production and animal feed industries. Smartphones, automobiles, and clothing are not commonly subsidized as agricultural products.