Why do small farmers suffer during inflation? - Vidyadip

Question

Why do small farmers suffer during inflation?

✓

Answer

Farmers generally gain during the periods of inflation because they get better prices for their crops.
However, small farmers do not gain much during inflation as a major part of their production is kept for self consumption. But they have to purchase inputs (e.g. seeds, fertilizers etc.) at high prices.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "[2 Mark Question Answer]" from Inflation→Inflation — all question types→Economics STD 10 question papers→ICSE Board STD 10 question papers→ICSE Board question paper generator→

Similar questions

State the impact of each of the following changes on the demand curve of a commodity:
(i) Increase in individual income
(ii) A rise in the price of the commodity
(iii) Increase in the supply of a substitute commodity
iv) Increase in the price of a complementary commodity

Explain the effect of inflation on value of money.

Distinguish between current deposit and fixed deposits.

Draw a supply curve.

If the demand for a commodity Y increases as the price of another commodity X rises, what is the relation between the two goods?###Substitute products A and B are produced by different firms. Give a reason why a change in the price of product A will bring about a change in quantity demanded for product B.

Is a motor car owned by a doctor circulating capital or fixed capital? Give two reasons to support your answer.

Differentiate between an entrepreneur and labourer on the basis of
(i) Nature of work
(ii) Nature of risk Involved

Mention any two examples of administrative renenue.

Distinguish between tax and price.

Which disadvantage of the barter system is overcome by the function of money as medium of exchange?###What is meant by double coincidence of wants? How does money overcome this problem?###How does use of money solve the problem of lack of double coincidence of wants that existed under the barter system?