Question 49

Nurseries need a special permit to prevent market saturation.

A special permit is required for nurseries to maintain fair competition and avoid an oversupply of similar products in the market, which could lead to insufficient buyers for the plants.

A) To ensure that nurseries follow safety regulations.

While safety regulations are important for nurseries, the primary reason for the special permit is to regulate market competition rather than safety. This option does not address the core purpose of the permit as highlighted in the extract.

B) Too many nurseries mean that there are not enough buyers for the plants that need to be sold.

This option accurately reflects the reason for requiring a special permit. The extract specifies that the permit helps to keep competition fair and prevents the market from being saturated with nurseries that could lead to an imbalance between supply and demand.

C) To control the quality of plants sold in nurseries.

Controlling quality is certainly a critical aspect of nurseries, but the extract emphasizes the need for a permit to manage competition rather than to ensure quality control. Therefore, this option does not address the main reason for the special permit.

D) To provide financial assistance to new nursery owners.

This option is incorrect as the purpose of the special permit is not to provide financial assistance. The extract does not mention financial aid as a reason for the permit, focusing instead on market regulation.

Conclusion

The correct answer is option B, as it directly relates to the need for a special permit to regulate competition among nurseries, preventing an oversupply that could reduce the number of buyers. The other options fail to capture the essence of the permit's purpose, which is rooted in maintaining a balanced market for the plants sold.