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O Levels Economics (2281)•2281/12/M/J/18
Question 25 from 2281/12/M/J/18

Explanation

Financial Barriers in Subsistence Farming

Steps:

  • Identify the core challenge: subsistence farmers produce just enough for survival, leaving no surplus for investments.
  • Recognize economic reality: poverty cycles prevent access to credit or savings needed for machinery.
  • Evaluate choices: only option A directly addresses inability to afford tools that boost output.
  • Confirm: rural poor's low income explains the absence of productivity-enhancing equipment.

Why A is correct:

  • Subsistence farming relies on self-sufficiency, where limited income (a basic economic constraint) blocks capital for machinery purchases, per principles of agricultural economics.

Why the others are wrong:

  • B: Overproduction affects market farmers, not self-sustaining subsistence ones who rarely sell surplus.
  • C: Large families are common in rural areas to provide labor, not a barrier to land work.
  • D: Women often perform most agricultural labor in these households, so this does not explain machinery gaps.

Final answer: A

Topic: Poverty

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