Role of Agriculture in Economic Development MCQs with Answers
Agriculture plays a crucial role in the economic development of a country by:
A) Reducing industrial output
B) Providing raw materials for industries
C) Decreasing exports
D) Limiting job opportunities
Which of the following is a key contribution of agriculture to economic development?
A) Decline in rural population
B) Creating employment opportunities
C) Decreasing agricultural output
D) Reducing agricultural prices
Agricultural productivity growth leads to:
A) Economic stagnation
B) Increased national income
C) Decline in industrial production
D) Limited economic expansion
In developing countries, agriculture is the main source of:
A) Industrial growth
B) Financial services
C) Employment and food security
D) Technological innovation
Which of the following is an indirect role of agriculture in economic development?
A) Providing food security
B) Promoting technological innovation
C) Reducing dependency on imports
D) Contributing to export revenue
Increased agricultural output directly influences:
A) Urbanization
B) Reduced poverty
C) Industrial production
D) Environmental degradation
The agricultural sector contributes to economic development by:
A) Only producing food for domestic consumption
B) Providing labor for the service sector
C) Supporting other sectors like transportation and trade
D) Limiting economic opportunities in rural areas
Which of the following is a primary function of agriculture in an economy?
A) Ensuring deforestation
B) Maintaining food supply and stability
C) Reducing the importance of education
D) Decreasing industrial growth
Agriculture is critical in achieving:
A) Economic diversification
B) Increased imports
C) Growth of the service sector
D) Agricultural dependency
The development of agricultural infrastructure, such as irrigation and transportation, directly impacts:
A) Economic growth and productivity
B) Decline in food security
C) Limited economic opportunities
D) Decreased population growth
Which of the following sectors benefits most from agricultural development?
A) Information technology
B) Industrial and manufacturing sectors
C) Services and tourism
D) Defense sector
Which factor can enhance the agricultural sector’s contribution to economic development?
A) Decreasing farm productivity
B) Use of modern technology and techniques
C) Reducing agricultural exports
D) Focusing solely on food production
Agricultural development often leads to:
A) Increased industrial output
B) Decreased literacy rates
C) Economic underdevelopment
D) Food security and poverty reduction
Which of the following is a significant benefit of agriculture in economic development?
A) Encouraging overpopulation
B) Exporting food at the expense of industrial development
C) Promoting sustainable land use
D) Displacing workers from rural areas
Which of these is a limitation of agriculture in economic development?
A) It guarantees rapid technological progress
B) It provides the foundation for industrial growth
C) It is often subject to climate change and weather conditions
D) It leads to the growth of financial services
Which of the following is the most important agricultural export of developing countries?
A) Petroleum
B) High-tech equipment
C) Food products and raw materials
D) Automobiles
Agriculture’s role in rural economic development involves:
A) Decreasing demand for food
B) Promoting agricultural subsidies only
C) Encouraging rural-urban migration
D) Generating income and employment for rural populations
Which type of agriculture contributes significantly to both rural development and national income?
A) Commercial agriculture
B) Subsistence farming
C) Agricultural tourism
D) Organic farming
The link between agriculture and industrialization is:
A) Agricultural development creates a market for industrial goods
B) Industrialization has no effect on agriculture
C) Agriculture and industrialization grow independently
D) Industrialization reduces agricultural output
Which economic theory highlights the importance of agriculture in economic development?
A) Dependency Theory
B) Modernization Theory
C) Structuralism
D) Dual-Sector Model
Which of the following is a key challenge in the agricultural sector’s contribution to economic development?
A) Overabundance of skilled labor
B) Insufficient technological innovation
C) High industrialization rates
D) Excessive demand for agricultural goods
The relationship between agriculture and economic development can be characterized by:
A) A declining agricultural contribution to GDP as development progresses
B) A growing reliance on subsistence farming
C) Agricultural growth leading to industrial stagnation
D) Agricultural development enabling industrialization and growth
Which is a benefit of improving agricultural productivity?
A) Increasing food prices
B) Reducing investment in industrial development
C) Enhancing economic growth and national prosperity
D) Reducing exports of agricultural products
Which aspect of agricultural development directly impacts human capital?
A) The introduction of new crops
B) Improved education and training in agricultural techniques
C) The increase in farming subsidies
D) Automation of rural workforces
Which type of economy benefits most from a strong agricultural sector?
A) Highly industrialized economies
B) Economies reliant on service sectors
C) Developing and emerging economies
D) Economies with low agricultural output
Increased agricultural exports can contribute to:
A) Reduced employment opportunities
B) Economic instability and inflation
C) Improved balance of trade and foreign exchange reserves
D) Decreased national income
Agricultural policy reforms often focus on:
A) Limiting technological advancements in farming
B) Reducing government support for farming communities
C) Increasing agricultural subsidies and access to markets
D) Encouraging the use of traditional farming methods only
Agricultural diversification is important because it:
A) Increases dependency on a single crop
B) Decreases economic resilience to price shocks
C) Improves economic stability and reduces risks
D) Limits market opportunities
The agricultural sector is a significant part of economic development because it:
A) Reduces employment opportunities
B) Contributes to the industrialization process
C) Limits the availability of food
D) Discourages technological advancements
Agriculture’s contribution to economic development is maximized when:
A) It is isolated from the rest of the economy
B) There is investment in modern infrastructure and technology
C) It focuses only on subsistence farming
D) All land is kept under the same type of crops