Why Does Technical Change in Agricultural Merit the Concern of Development

question 5

Multiple Choice

Why does technical change in agricultural merit the concern of development economists?

• A) Technical change can be an important source of inflation
• B) In a developing country where a small percentage of the population are involved in agriculture,technical change is less important than other development goals
• C) It has the ability to reduce poverty for many groups within a developing country
• D) Technical change will be required to sustain inflation in food prices

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Definitions:

Price Elasticity

The degree to which the quantity demanded of a good changes in response to a change in its price.

Marginal Cost

The financial impact of producing another unit of a product or service.

Monopolist

An individual or firm that is the sole supplier of a particular product or service, giving them significant control over the market price.

Marginal Revenue

Marginal revenue is the additional income that an organization receives from selling one more unit of a good or service.