Supply restrictions in the farming industry occur in the form of
A)Price supports.
B)Acreage set-asides.
C)Countercyclical payments.
D)Direct income support.

Question

Quizplus · Accepted Answer

Acreage set-asides are a form of supply restriction in the farming industry where farmers are paid to leave a certain percentage of their land fallow or not plant a certain crop in order to reduce the supply of that crop and raise prices. This is a common policy tool used by governments to manage the supply and demand balance in the agricultural sector. Price supports, direct income support, and countercyclical payments are all forms of financial assistance provided to farmers for various reasons, but they do not directly impact supply restrictions.

Supply Restrictions in the Farming Industry Occur in the Form