Indian Economic Development: Indian Economy:1950-1990
Question:
Why do tenants lack incentives to make improvements on land?
Options:
They have limited resources for investments.
The landowners benefit more from higher output.
They are not legally allowed to make improvements.
Both 1 and 2
Correct Answer:
The landowners benefit more from higher output.
Explanation:
The tenants lack the incentive to make improvements on land because the landowners would benefit more from the increased output, as they are the ones who own the land.
