Sample interview questions: Can you explain the concept of agricultural input subsidies and their effects?
Sample answer:
Agricultural Input Subsidies
Input subsidies are financial incentives provided to farmers to reduce their production costs. Examples include subsidies on fertilizers, seeds, and machinery.
Effects of Input Subsidies:
- Increased Production: Subsidies lower input costs, enabling farmers to increase production without raising prices.
- Improved Farm Incomes: Subsidies directly boost farm incomes by reducing expenses.
- Enhanced Food Security: Increased production can improve food availability and reduce malnutrition, especially in developing countries.
- Reduced Consumer Prices: Subsidized inputs lower production costs, potentially reducing food prices for consumers.
Potential Challenges:
- Distortions in Resource Allocation: Subsidies can encourage farmers to overproduce or use excessive inputs, leading to inefficiencies in resource allocation.
<... Read full answer
Source: https://hireabo.com/job/7_4_24/Agricultural%20Economist