Question

In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for his?

1. A large number of farmers are illiterate and know little about scientific agriculture

2. Prices of primary products are lower than of manufactured products

3. Investment in agriculture has been low when compared to investment in industry

Select the correct answer by using the codes given below:

Codes:

(a) 1, 2 and 3 (b) 1 and 3 (c) 1 and 3 (d) 2 and 3

Answer 1

(d) Prevailing illiteracy in rural areas is low but it does not lower productivity. The farmer has adequate knowledge of farming techniques. Low prices of primary products compared to the manufactured products and investment in the agriculture sector compared to the industry are major factors which accounts for low incomes in rural economy than in Urban economy