Question

What practice does the government allow farmers that is illegal in other industries?

Answer 1

Answer:

C). To meet and agree to limit supply.

Explanation:

The government offers the exclusive authority of 'meeting and agreeing to limit supply' to the farmers due to specific conditions and significance of the various processes of supply i.e. 'production, supervision, distribution of food, as well as, other resources associated with farming.'

These specific conditions give birth to the agricultural subsidy which is necessary for the farming sector as it allows the farmers to control the supply of agricultural items and affect the price, as well as, the supply of such goods in the market.

It assists the government in maintaining the balance between the demand and supply of commodities associated with the farming sector. This relationship between the farmers and the government works upon the mutual benefit and is quite significant in the industry.