Economics

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

Answer
B) Providing raw materials for industries

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

Answer
B) Creating employment opportunities

Agricultural productivity growth leads to:
A) Economic stagnation
B) Increased national income
C) Decline in industrial production
D) Limited economic expansion

Answer
B) Increased national income

In developing countries, agriculture is the main source of:
A) Industrial growth
B) Financial services
C) Employment and food security
D) Technological innovation

Answer
C) Employment and food security

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

Answer
D) Contributing to export revenue

Increased agricultural output directly influences:
A) Urbanization
B) Reduced poverty
C) Industrial production
D) Environmental degradation

Answer
B) Reduced poverty

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

Answer
C) Supporting other sectors like transportation and trade

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

Answer
B) Maintaining food supply and stability

Agriculture is critical in achieving:
A) Economic diversification
B) Increased imports
C) Growth of the service sector
D) Agricultural dependency

Answer
A) Economic diversification

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

Answer
A) Economic growth and productivity

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

Answer
B) Industrial and manufacturing sectors

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

Answer
B) Use of modern technology and techniques

Agricultural development often leads to:
A) Increased industrial output
B) Decreased literacy rates
C) Economic underdevelopment
D) Food security and poverty reduction

Answer
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

Answer
C) Promoting sustainable land use

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

Answer
C) It is often subject to climate change and weather conditions

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

Answer
C) Food products and raw materials

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

Answer
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

Answer
A) Commercial agriculture

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

Answer
A) Agricultural development creates a market for industrial goods

Which economic theory highlights the importance of agriculture in economic development?
A) Dependency Theory
B) Modernization Theory
C) Structuralism
D) Dual-Sector Model

Answer
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

Answer
B) Insufficient technological innovation

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

Answer
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

Answer
C) Enhancing economic growth and national prosperity

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

Answer
B) Improved education and training in agricultural techniques

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

Answer
C) Developing and emerging economies

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

Answer
C) Improved balance of trade and foreign exchange reserves

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

Answer
C) Increasing agricultural subsidies and access to markets

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

Answer
C) Improves economic stability and reduces risks

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

Answer
B) Contributes to the industrialization process

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

Answer
B) There is investment in modern infrastructure and technology

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