The difference between a farmer’s output over and above his on-farm consumption is known as _________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. marketable surplus.
The difference between a farmer's output and his on-farm consumption is known as marketable surplus. It refers to the portion of agricultural production that remains after the farmer has set aside enough for personal consumption, seed requirements, and other on-farm uses. This surplus can be sold in the market for income. The concept is crucial for understanding the availability of agricultural products in the market, influencing food supply, prices, and overall economic activity in the agricultural sector.