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Question
CBSEENSS9007883

Modern farming methods require more inputs which are manufactured in industry. Do you agree?

Solution

Yes, modern farming methods require more inputs:

(i) Fixed Capital: Modern farming methods need more fixed capital such as tools, machines, tractors, combines, threshers, drilling machines, motors etc. All these factors are manufactured in Industry.

(ii) Working Capital: Modern farming also needs more working capital such as chemical fertilizers, pesticides, weedicides etc which are also manufactured in Industries.