Question:
In economics, Minimum Support Price (MSP) is the
In economics, Minimum Support Price (MSP) is the
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MSP plays a crucial role in agricultural economics by providing price support to farmers, thereby ensuring a stable income and preventing exploitation in volatile markets.
Updated On: Mar 9, 2025
- minimum wage offered to the workers in the organized sector.
- price at which the government buys agricultural output from the farmers.
- minimum price the producers demand to sell their goods.
- None of these
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The Correct Option is B
Solution and Explanation
Minimum Support Price (MSP) is the minimum price at which the government purchases agricultural produce from the farmers, ensuring that they get a fair price for their crops. MSP is announced by the government for certain crops to protect the farmers from price fluctuations in the market and ensure they receive a minimum guaranteed income.
Thus, the correct answer is (2) price at which the government buys agricultural output from the farmers.
Thus, the correct answer is (2) price at which the government buys agricultural output from the farmers.
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