Question
An article in the Wall Street Journal on the Indian economy noted that an estimated 263 millionIndians55%of the country's workforceeke out a living from farms.
An article in the Wall Street Journal on the Indian economy noted that "an estimated 263 millionIndians55%of the country's workforceeke out a living from farms. This makes any attempt at agriculture reform both economically significant and politically risky."Source: Sadanand Dhume, "Farmers Will Reap the Benefits of Modi's Reforms," Wall Street Journal ;October 1, 2020.
1. Would India be better off economically with a smaller agricultural sector?
A.Yes, the large agricultural sector is a problem because low levels of labor productivity result in low levels of income for these workers.
B.Yes, India can easily import the food that it needs.
C.No, because there is high unemployment in India and agriculture provides an opportunity for more people to work.
D.No, India's large population requires a large agriculture workforce to support it.
2. Why might reforms that would shrink the relative size of the Indian agricultural sector be difficult for the Indian government to implement?
A.A large percentage of the Indian economy does not want to change jobs.
B.Many foreign countries rely on Indian food exports and do not want India to reduce production.
C.India suffers from political problems with ethnic, religious, cultural, and geographic divisions, which make it difficult for the government to successfully implement policy reforms.
D.India sees the example of the United States and China who saw reductions in economic growth when the size of their agricultural sectors declined.
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