Economics 0455 · IGCSE · Economic growth

Economic growth — practice question

Subsistence farming refers to producing crops and keeping livestock only to meet one’s own needs, with no excess left to sell or exchange. Why does this make it hard for a government to assess economic growth in an economy that depends on subsistence farming?

  • AFarmers’ families consume most of their own produce.
  • BFarmers have low rates of saving.
  • CThe size of harvest is dependent on the weather.
  • DThe surplus produce is sold to the government.

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