The following are examples of income smoothing except:
A) Farmers producing crops that harvest at different times during the year
B) Farmers working for neighbor's farm producing the same crops as at home
C) Famers working part time in a non agriculture job
D) Farmers using different soil qualities or farming plots of land at different latitudes

Question

Quizplus · Accepted Answer

Income smoothing refers to strategies that stabilize income over time. Choice B, where farmers work for neighbors producing the same crops, does not inherently smooth income, as it is subject to the same market and environmental risks as their own crop production. Choices A, C, and D involve diversification or additional income sources, which can help stabilize income over time.

The Following Are Examples of Income Smoothing Except