Beginning in the late 1970s,economic reform in China allowed farmers,for the first time,to keep a portion of their crops and to sell them to others.Previously,all food was collectively farmed and shared.How did this basic reform improve China's economic growth?

Question

Quizplus · Accepted Answer

By allowing farmers to keep and sell a portion of their crops, they had a financial incentive to produce more, leading to an increase in food production and economic growth. Option A is incorrect as it mentions taxing farmers which is not related to this reform. Option C is incorrect as it mentions a negative incentive for farmers to work less. Option D is incorrect as importing food would not be incentivized by this specific reform. Option E is incorrect as it mentions a negative incentive for consumers to eat less which is not related to this reform.

Beginning in the Late 1970s,economic Reform in China Allowed Farmers,for