When a Drought (Negative Rainfall Shock) Occurs, Farmers Tend to Put

question 65

Multiple Choice

When a drought (negative rainfall shock) occurs, farmers tend to put in less effort than they did before to till their farms because

• A) agricultural output falls and even though farmers put in the same level of effort, the effort per hour falls.
• B) extra hours of extra labor and capital usage do not yield much extra output.
• C) people work hardest when their hard work yields lower returns.
• D) they switch to crops that use less water.

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