IBDP Economics Question Analysis Topic: Economics -
Exam Question:
What is the procurement price for an agricultural commodity?
A) Money paid to the farmers during the drought
B) The subsidy paid by the government over the market price
C) The minimum price at which the government is ready to buy
D) The price floor in which it cannot be sold under
Answer:
For IBDP Economics, you should know:
The government's minimum purchase price for an agricultural product is known as the procurement price. Crops and cattle that are raised or farmed on farms or plantations are known as agricultural commodities. Hence, the answer is C.
Additional notes and info
Agriculture produces dairy, livestock, and grains, which are important sources of food for both humans and other animals worldwide.
Almost every living thing on Earth depends in some way on the agriculture sector. We eat the cereals, fruits, vegetables, and animals that farmers raise. We also use lumber to build our homes, clothe ourselves in cotton and wool, and travel in cars with rubber tires. Additionally, nearly 20% of the world's population—1.3 billion people—work in agriculture. In many regions of the world, such as South Asia and Sub-Saharan Africa, agriculture employs more people than any other sector. The agricultural sector has a significant global impact.
Work hard for your IBDP Economics examination!
End of analysis. Great!
