O-LevelEconomicsEconomic development2281/12 · May/June 2018 · Q251 Mark

Over two-thirds of the world's poorest people live in rural areas. They are mainly involved in subsistence agriculture. What explains why poverty remains at a high level for subsistence farming families?

Alack of finance to buy machinery to improve productivity

Blow international prices for food due to overproduction

Cthe size of families is too small to work the land

Dwomen are discouraged from doing agricultural work

✓ Correct answer

A: lack of finance to buy machinery to improve productivity

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Topic: Economic development, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2018 Paper 1 Variant 2, question 25.

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