Chapter 4

NCERT
Class 10
Economics
Solutions
3. In the above example, we saw that the US government gives massive sums of money to farmers for production.

Question:

In the above example, we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not.

Answer:

A large amount of money is provided as a grant by the US government to the farmers for production. Apart from this, it also provides assistance to promote the production of certain types of products such as environment-friendly items. This is not justified because America wants to establish its control over the entire international market with this help. The major result of this aid is that American farmers are able to sell their agricultural products in the international market at exceptionally low prices. This has an adverse effect on the farmers of developing countries like India.

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