Question

Select the four parties below that directly benefit from the contract production of food commodities due to the guarantee of a specific price payment for the product.

A. bankers
B. stockbrokers
C. workers
D. processors
E. producers
F. landlords
G. transporters

Answer 1

Workers, Processors, Producers, and Landlords directly benefit from contract production of food commodities due to guaranteed specific prices. Bankers, Stockbrokers, and Transporters are not direct beneficiaries.

Step-by-step explanation:

Four parties that directly benefit from the contract production of food commodities, due to the guarantee of a specific price payment for the product, can be identified from the options given. They are:

1. Workers (C): they benefit as the contract guarantees steady work and, potentially, better wages due to the stability the contract provides to the producers.
2. Processors (D): they benefit because the contract ensures a consistent supply of the commodities they need to keep their operations running efficiently.
3. Producers (E): the most direct beneficiaries, as they receive a promised price for their goods, reducing the risks associated with fluctuating market prices.
4. Landlords (F): they benefit as owners of the land that is leased to producers; a stable, contractually guaranteed income means steady rental income.

Bankers (A) and stockbrokers (B) are generally associated with the financial market, and transporters (G), while indirectly impacted, are not guaranteed a specific price for their services within the contract itself. Therefore these groups do not directly benefit from a set price payment within the contract production of food commodities.