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Agriculture in India
» Practice Questions
1. Labor productivity in India:
is relatively high, as agriculture makes up 16% of the economy, but employs 50% of the labor force
is relatively low, as agriculture makes up 16% of the economy, but employs 50% of the labor force
is neither high nor low, as agriculture makes up 16% of the economy, but employs 50% of the labor force
2. Which of the following are some of the reasons India may experience low agricultural productivity?
regulation of larger businesses and limits on exports
unrestricted ownership of land by firms and unrestricted foreign investment
both a. and b.
3. One major reason agricultural productivity in India is low is that _________________________, meaning goods often cannot reach the proper markets.
there are a lack of price controls
there is a lack of central planning
there are weak roads and infrastructure
4. In 2012, India experienced a record wheat stockpile. However, 2/3 of this stockpile rotted. Which of the following is NOT a reason for inefficiency in India’s wheat market?
Government purchases wheat above the market-clearing price, leading to overproduction.
The storage capacity for wheat was upgraded too quickly, leading to overproduction.
The world price for wheat is less than the price of Indian wheat.