Asked by logan brockway on Jun 17, 2024
Verified
The fundamental cause of agricultural price and income instability in the United States has been a(n)
A) lack of foreign demand for U.S. agricultural products.
B) lack of efficiency in the farm sector of the American economy.
C) underallocation of resources to the farm sector of the economy relative to that of the nonfarm sector.
D) overallocation of resources to the farm sector of the economy relative to that of the nonfarm sector.
Agricultural Price And Income Instability
Fluctuations in the prices and incomes in the agricultural sector due to variables like weather conditions, demand changes, and global market forces.
Overallocation Of Resources
A situation where resources are distributed in an inefficient manner, often leading to excess supply and wasted assets.
- Ascertain the causes behind the volatility of income and price levels in agriculture.
Verified Answer
MT
marcc tommyJun 21, 2024
Final Answer :
D
Explanation :
The fundamental cause of agricultural price and income instability in the United States has been the overallocation of resources to the farm sector of the economy relative to that of the nonfarm sector. This overallocation leads to overproduction, which in turn causes prices and incomes to fluctuate more significantly.
Learning Objectives
- Ascertain the causes behind the volatility of income and price levels in agriculture.
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