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Question
Which of the following is deemed as the causative for scarcity of capital among small farmers?
Which of the following is deemed as the causative for scarcity of capital among small farmers?
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Solution
The correct option is B Scarcity of land
Small farms correspond to less production. This implies that the farmers would generate less surplus and therefore earn less. Their earnings are not sufficient enough to buy the capital required to grow high yielding variety seeds.
Thus, the scarcity of land causes them to face the scarcity of capital too.
Small farms correspond to less production. This implies that the farmers would generate less surplus and therefore earn less. Their earnings are not sufficient enough to buy the capital required to grow high yielding variety seeds.
Thus, the scarcity of land causes them to face the scarcity of capital too.
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