Question

Economic studies of Indian agriculture have often observed an inverse relationship between farm size and productivity per unit area, with smaller farms frequently showing higher output per hectare than larger farms. Which of the following is most commonly cited as a key explanatory factor behind this observed inverse relationship?

Q: Answer-Economic studies of Indian agriculture have often observed an inverse relationship between farm size...

The inverse relationship between farm size and productivity is most commonly explained by the tendency of smaller farms to apply more labour-intensive cultivation practices per unit area, often using family labour with a comparatively low opportunity cost, allowing greater attention to detail in operations such as weeding, irrigation and harvesting compared with larger farms.

A Smaller farms use significantly less labour per hectare than larger farms

B Smaller farms generally use less fertile land than larger farms

C Smaller farms tend to apply more labour-intensive cultivation practices per unit area, often supplied by family labour with a low opportunity cost

D Larger farms always use more modern technology and therefore have inherently higher productivity

E There is no meaningful relationship between farm size and productivity in Indian agriculture

Practice Next

Detailed Solution

More Agri economics Questions

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper