IGCSE Development Studies: Specimen Questions with Answers 13 - 14 of 98

Explanation

Agriculture plays an important role in the development of the economy. Agriculture has contributed to the prosperity of developed countries and it also has a significant role in promoting the economy of the developing countries.

Emphasis on agriculture is made where the per capita income of a country is low. Various economies of the world have learned to not give much emphasis on the industrialization as an increase in the agricultural activities along with industrialization will lead to increase in demand for industrial production.

Agriculture makes its contribution in the following ways:

• It provides food and raw materials to the non-agricultural sector of the economy
• Agriculture creates demand for goods in the non-agriculture sector.
• It provides strength to rural people by increasing their purchasing power
• It provides surplus amount which can be invested in other non-agricultural areas
• Earning of foreign exchange through exports of agricultural products.

Explanation