Question

How does an increase in the income of farmers lead to econmic growth?
Place the first step at the top.

• A. Economic growth
• B. Demand increase
• C. Employment rise
• D. Higher income

Answer 1

If farmers are able to earn higher income, they would be able to spend more. They would have the capacity to buy modern agricultural products like tractors, harvesters, sprayers, motors, etc. This will increase the demand for industrial products and services. The secondary and tertiary sectors will grow and in turn, more jobs will be created.