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FAQs on Class 12 Economics Question Paper Solved (2024) - 10 - Economics Class 12 - Commerce

1. What are the factors affecting the demand for agricultural products?
Ans. Factors affecting the demand for agricultural products include income levels, population growth, consumer preferences, prices of substitutes, and government policies.
2. How does inflation impact the agricultural sector?
Ans. Inflation can lead to higher input costs for farmers, decreasing their profit margins. It can also affect consumer purchasing power, leading to changes in demand for agricultural products.
3. What is the role of technology in increasing agricultural productivity?
Ans. Technology plays a crucial role in increasing agricultural productivity by enabling farmers to use advanced machinery, precision farming techniques, and biotechnology to improve crop yields and efficiency.
4. How do government policies influence the agricultural sector?
Ans. Government policies such as subsidies, price controls, trade regulations, and agricultural credit programs can have a significant impact on the agricultural sector by affecting production costs, market prices, and overall profitability.
5. What are the challenges faced by small-scale farmers in the agricultural sector?
Ans. Small-scale farmers often face challenges such as limited access to capital, lack of modern technology, market access barriers, and vulnerability to climate change, which can hinder their ability to compete and thrive in the agricultural sector.
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