In Sahil’s case, a farm laborer typically receives payment in kind, which means compensation is provided through goods rather than cash. This could involve receiving a portion of the harvested crops, such as grains or vegetables, as payment for their labor on the farm. This method of compensation is common in agricultural settings, especially in rural areas where cash flow may be limited. Such arrangements not only support the laborer’s immediate needs for food but also reinforce community ties through shared agricultural practices, illustrating the traditional practices that often characterize rural economies.
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compensation is provided through goods rather than cash
When Sahil receives part of his payment in mangoes, it exemplifies the concept of payment in kind, where goods or services are exchanged instead of traditional monetary currency. This form of compensation is often used in agricultural or barter economies, where tangible items like food, livestock, or other products are given in lieu of cash. Payment in kind can help facilitate transactions in situations where cash may be scarce or impractical. Additionally, it reflects a direct exchange of value, allowing individuals to fulfill their needs using tangible goods rather than relying solely on currency. Therefore option 2 is correct.
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