Economics 2281 · O Level · Economic growth

Economic growth — practice question

Subsistence farming means producing crops and rearing livestock only to satisfy one’s own needs, with no excess left for trade. Why would it be hard for a government to assess economic growth in an economy that relies 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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