Future Business Leaders of America (FBLA) Agribusiness Practice Test

What are government policies in agribusiness designed to do?

1. Encourage private investment in agriculture

2. Regulate agribusiness practices

3. Increase taxes on agricultural products

4. Support international trade agreements

The correct answer is: Regulate agribusiness practices

Government policies in agribusiness are primarily designed to regulate agribusiness practices. This regulation serves several important purposes, including ensuring food safety, promoting environmental sustainability, safeguarding consumer interests, and maintaining fair competition within the agricultural market. By setting guidelines and standards, these policies help to create a stable and predictable environment for both producers and consumers. Regulation can involve inspections, certifications, and compliance requirements that all businesses in the agricultural sector must follow. These measures help mitigate risks associated with farming and food production, such as contamination or exploitation of labor, which can have far-reaching effects on public health and societal well-being. While encouraging private investment, increasing taxes, and supporting international trade agreements are important aspects of agricultural policy, they are typically secondary to the overarching goal of regulation, which maintains quality and safety in the food supply and fosters a sustainable agribusiness environment.