Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:

Why there is a need of " Diversification" in rural areas?

Options:

To reduce the risk involved in farming

To provide sustainable livelihood options to rural people

To not put all the eggs in the same basket

All of the above

Correct Answer:

All of the above

Explanation:

The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people. It is similar to the saying, "Not to put all the eggs in the same basket".