Single Answer MCQ
Q-00015963

What is one reason why the government provides subsidies to farmers?

1

To encourage overproduction

2

To stabilize prices and support agricultural income

3

To promote exports

4

To reduce workforce in agriculture

Answer and Solution

Answer

B. To stabilize prices and support agricultural income

Solution:

Governments provide subsidies to stabilize farmers' incomes and to manage prices of essential food items, ensuring food security.

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