Question

A record crop, which is more the rule than an exception in agriculture, can lead to:

a. Sharp declines in input use and cash receipts from marketing.
b. Sharp declines in farm product prices and cash receipts from marketing.
c. Sharp declines in cash receipts from marketing and higher input prices.
d. None of the above

Answer 1

A record crop can lead to sharp declines in farm product prices and cash receipts from marketing.

This correct answer is A.

Step-by-step explanation:

When there is a record crop in agriculture, it can lead to sharp declines in farm product prices and cash receipts from marketing.

This is because when there is a surplus of agricultural products, the increased supply causes the prices to drop.

As a result, farmers receive lower cash receipts from selling their crops.

This correct answer is A.

Answer 2

A record crop, which is more the rule than an exception in agriculture, can lead to sharp declines in farm product prices and cash receipts from marketing. Option B is answer.

Step-by-step explanation:

When agriculture experiences a record crop, the increased supply can lead to a surplus in the market, triggering a decrease in farm product prices. This is captured in option (b) "Sharp declines in farm product prices and cash receipts from marketing." As the market becomes flooded with an abundance of a particular crop, the increased supply often outpaces demand, putting downward pressure on prices. Consequently, farmers may face reduced cash receipts from the sale of their products. This phenomenon is a typical economic outcome in agriculture when there is an exceptionally abundant harvest.

Option B (Sharp declines in farm product prices and cash receipts from marketing) is the answer.