US Secretary of Agric. Brannan

The video explains a method to lower surplus commodity prices for consumers while maintaining farmer income. Farmers sell their produce in the market, receiving prices determined by market factors. If the average price is below a fair return, the government compensates the difference to the farmers.

What is the primary benefit of lowering prices for surplus commodities?

• It increases the income of farmers.

• It reduces the cost for consumers.

• It limits the supply of commodities.

• It decreases the quality of produce.

How are prices determined for farmers' produce in the market?

• By the free play of normal market factors.

• Through international trade agreements.

• Based on historical prices.

• By government regulations.

Which of the following is NOT a factor in determining market prices for farmers?

• Weather conditions.

• Government subsidies.

• Supply and demand dynamics.

• Consumer preferences.

What happens if the average price received by farmers is below a fair return?

• The market prices are adjusted.

• Farmers are required to sell more produce.

• The government pays the difference to the farmers.

• Farmers receive a tax deduction.

What role does the government play if farmers do not receive a fair return?

• It increases taxes on consumers.

• It buys the surplus produce.

• It compensates the farmers for the shortfall.

• It imposes price controls.