Agricultural Policies and Institutional Risks Quiz

Play an AI-generated podcast conversation about this lesson

How can changes in the level of input and output support, and subsidies impact farming profitability?

Fluctuate profitability based on unpredictable factors (correct)

Decrease profitability due to increased costs

Increase profitability by reducing expenses

Have no impact on profitability

What is a dimension of institutional risk related to government actions in agricultural commodities?

Impeding farmers' ability to benefit from market situations (correct)

Encouraging export opportunities

Promoting fair competition among farmers

Price stabilization

Which action does NOT contribute to institutional risk for farmers according to the text?

Encouraging commodity exchanges and derivatives trading (correct)

Revision of export tariffs

Imposing a minimum-export price

Restrictions on purchase and movement of agricultural commodities

What is a significant risk posed by uncertainties regarding subsidies for inputs like fertilizers, power, and irrigation?

Inability to plan effectively leading to financial instability Signup and view all the answers

How do new technologies like genetically modified crops introduce technology risk in agriculture?

Require high agricultural awareness for proper application Signup and view all the answers

What information gap adds significant risk to farming practice in India according to the text?

Limited awareness of market developments and new agricultural technologies Signup and view all the answers

Exposure to harmful chemicals and micro-organisms in agriculture is classified as:

Personal risk Signup and view all the answers

What type of mechanism is government-supported crop insurance considered as?

Formal Signup and view all the answers

Which risk does lack of awareness regarding modern agricultural tools like HYV seeds represent?

Technology risk Signup and view all the answers

In India, commodity exchanges primarily serve as a:

Price risk management tool Signup and view all the answers

Which type of risk can be caused by delayed monsoons in agriculture?

Production risk Signup and view all the answers

What kind of impact does exposure to harmful micro-organisms have on farmers?

Personal risk Signup and view all the answers

What are the two main classifications of risk management mechanisms mentioned in the text?

Informal and formal Signup and view all the answers

Which type of risk management mechanism involves activities before the occurrence of risk according to the text?

Ex-ante Signup and view all the answers

What do informal risk management strategies involve?

Individuals or households Signup and view all the answers

Which institution is quoted by the World Bank for distinguishing between informal and formal risk management mechanisms?

2000/2001 World Development Report Signup and view all the answers

What is the main focus of formal risk management mechanisms?

Market-based activities Signup and view all the answers

Which term is used in the text to describe mechanisms implemented after the occurrence of a risk?

Ex-post Signup and view all the answers