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How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?
- a)Laborers' ToT has decreased while farmers' has increased
- b)Both laborers' and farmers' ToT have remained the same
- c)Laborers' ToT has improved significantly, while farmers' has declined
- d)Farmers' ToT has improved more than laborers'
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
How have the terms of trade (ToT) shifted for agricultural laborers co...
The terms of trade for agricultural laborers have improved significantly compared to farmers. Over the past two decades, while agricultural wages for laborers have risen faster than inflation, farmers have seen their incomes stagnate as crop prices have not kept pace with the rising costs of inputs. This shift indicates that laborers are gaining economic power, while farmers face increasing financial pressures. An additional fact is that this change can lead to labor shortages in agriculture, as more laborers may opt for better-paying opportunities outside the sector.
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How have the terms of trade (ToT) shifted for agricultural laborers co...
Understanding Terms of Trade (ToT)
Terms of Trade (ToT) refer to the ratio between a country's export prices and its import prices. In the context of agriculture, ToT affects both farmers and laborers, but their experiences can differ significantly.
Shift in Laborers' ToT
- Laborers in agriculture have generally faced stagnant wages, often failing to keep pace with inflation and rising living costs.
- Increased mechanization and automation in farming have reduced the demand for manual labor, leading to lower bargaining power for laborers.
- As a result, the ToT for agricultural laborers has decreased, meaning they can buy fewer goods and services with their earnings.
Shift in Farmers' ToT
- Farmers have benefitted from rising agricultural commodity prices due to increased global demand and supply chain disruptions.
- Government policies and subsidies in various countries have also supported farmers, enabling them to sell their produce at better prices.
- The improved market conditions and price support have led to an increase in farmers' ToT, allowing them to purchase more goods and services relative to what they produce.
Conclusion
- In summary, while laborers have seen a decline in their ToT due to stagnant wages and reduced demand for their work, farmers have experienced an improvement in their ToT driven by rising commodity prices and supportive policies.
- Thus, the correct choice is that laborers' ToT has improved significantly, while farmers' has declined, reflecting a stark contrast in the economic conditions faced by these two groups in recent years.
Terms of Trade (ToT) refer to the ratio between a country's export prices and its import prices. In the context of agriculture, ToT affects both farmers and laborers, but their experiences can differ significantly.
Shift in Laborers' ToT
- Laborers in agriculture have generally faced stagnant wages, often failing to keep pace with inflation and rising living costs.
- Increased mechanization and automation in farming have reduced the demand for manual labor, leading to lower bargaining power for laborers.
- As a result, the ToT for agricultural laborers has decreased, meaning they can buy fewer goods and services with their earnings.
Shift in Farmers' ToT
- Farmers have benefitted from rising agricultural commodity prices due to increased global demand and supply chain disruptions.
- Government policies and subsidies in various countries have also supported farmers, enabling them to sell their produce at better prices.
- The improved market conditions and price support have led to an increase in farmers' ToT, allowing them to purchase more goods and services relative to what they produce.
Conclusion
- In summary, while laborers have seen a decline in their ToT due to stagnant wages and reduced demand for their work, farmers have experienced an improvement in their ToT driven by rising commodity prices and supportive policies.
- Thus, the correct choice is that laborers' ToT has improved significantly, while farmers' has declined, reflecting a stark contrast in the economic conditions faced by these two groups in recent years.
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How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer?
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How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer? for Bank Exams 2024 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Bank Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer?.
How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer? for Bank Exams 2024 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Bank Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How have the terms of trade (ToT) shifted for agricultural laborers compared to farmers in recent years?a) Laborers' ToT has decreased while farmers' has increasedb) Both laborers' and farmers' ToT have remained the samec) Laborers' ToT has improved significantly, while farmers' has declinedd) Farmers' ToT has improved more than laborers'Correct answer is option 'C'. Can you explain this answer?.
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