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    Commercialisation of agriculture is an indication of ____________.
    Question

    Commercialisation of agriculture is an indication of ____________.

    A.

    income surplus

    B.

    producers’ surplus

    C.

    consumer surplus

    D.

    marketable surplus

    Correct option is D


    The correct answer is (d) marketable surplus.
    Commercialisation of agriculture refers to the shift from subsistence farming to farming for the market, where agricultural produce is grown primarily for sale rather than for personal consumption.
     This shift results in a marketable surplus, which is the portion of the agricultural output that is available for sale after meeting the domestic consumption needs of the producers.
     Marketable surplus is crucial for the growth of agribusiness and the overall economy, as it leads to increased income for farmers, better resource allocation, and enhanced supply chains.
    Information Booster
    Income surplus:
     Refers to the excess income that remains after all expenses have been paid. It is not specifically related to the commercialization of agriculture.
    Producers’ surplus:
     Refers to the difference between what producers are willing to accept for a good or service versus what they actually receive. It is an economic measure of producer benefit.
    Consumer surplus:
     Refers to the difference between what consumers are willing to pay for a good or service versus what they actually pay. It is an economic measure of consumer benefit.

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