Agriculture's Impact on Foreign Exchange Earnings

Description: This quiz will test your knowledge on the impact of agriculture on foreign exchange earnings.
Number of Questions: 15
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Tags: agriculture foreign exchange economics
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Which of the following is the major agricultural export of India?

  1. Rice

  2. Wheat

  3. Cotton

  4. Tea


Correct Option: A
Explanation:

Rice is the major agricultural export of India, accounting for a significant portion of the country's foreign exchange earnings.

How does agriculture contribute to the foreign exchange earnings of a country?

  1. By exporting agricultural products

  2. By importing agricultural products

  3. By providing raw materials for industries

  4. By creating employment opportunities


Correct Option: A
Explanation:

Agriculture contributes to the foreign exchange earnings of a country by exporting agricultural products to other countries, thereby generating revenue in foreign currency.

Which of the following factors affects the foreign exchange earnings from agriculture?

  1. Production levels

  2. Demand for agricultural products

  3. Prices of agricultural products

  4. All of the above


Correct Option: D
Explanation:

Foreign exchange earnings from agriculture are influenced by a combination of factors, including production levels, demand for agricultural products, and prices of agricultural products.

What are the benefits of increasing agricultural exports?

  1. Increased foreign exchange earnings

  2. Improved trade balance

  3. Creation of employment opportunities

  4. All of the above


Correct Option: D
Explanation:

Increasing agricultural exports can lead to increased foreign exchange earnings, an improved trade balance, and the creation of employment opportunities.

How can a country increase its agricultural exports?

  1. By increasing production

  2. By improving the quality of agricultural products

  3. By promoting agricultural products in international markets

  4. By all of the above


Correct Option: D
Explanation:

A country can increase its agricultural exports by increasing production, improving the quality of agricultural products, and promoting agricultural products in international markets.

What are the challenges faced by developing countries in increasing their agricultural exports?

  1. Lack of infrastructure

  2. Low productivity

  3. Unfavorable trade policies

  4. All of the above


Correct Option: D
Explanation:

Developing countries face a number of challenges in increasing their agricultural exports, including lack of infrastructure, low productivity, and unfavorable trade policies.

How can developing countries overcome the challenges in increasing their agricultural exports?

  1. By investing in infrastructure

  2. By providing incentives to farmers

  3. By negotiating favorable trade agreements

  4. By all of the above


Correct Option: D
Explanation:

Developing countries can overcome the challenges in increasing their agricultural exports by investing in infrastructure, providing incentives to farmers, and negotiating favorable trade agreements.

What is the role of technology in increasing agricultural exports?

  1. Technology can help increase production

  2. Technology can help improve the quality of agricultural products

  3. Technology can help reduce costs of production

  4. All of the above


Correct Option: D
Explanation:

Technology can play a significant role in increasing agricultural exports by helping to increase production, improve the quality of agricultural products, and reduce costs of production.

How can governments promote agricultural exports?

  1. By providing subsidies to farmers

  2. By investing in research and development

  3. By negotiating favorable trade agreements

  4. By all of the above


Correct Option: D
Explanation:

Governments can promote agricultural exports by providing subsidies to farmers, investing in research and development, and negotiating favorable trade agreements.

What are the environmental impacts of increasing agricultural exports?

  1. Deforestation

  2. Water pollution

  3. Soil erosion

  4. All of the above


Correct Option: D
Explanation:

Increasing agricultural exports can have a number of environmental impacts, including deforestation, water pollution, and soil erosion.

How can the environmental impacts of increasing agricultural exports be minimized?

  1. By adopting sustainable agricultural practices

  2. By investing in renewable energy

  3. By promoting agroforestry

  4. By all of the above


Correct Option: D
Explanation:

The environmental impacts of increasing agricultural exports can be minimized by adopting sustainable agricultural practices, investing in renewable energy, and promoting agroforestry.

What is the future of agricultural exports?

  1. Agricultural exports are expected to grow in the future

  2. Agricultural exports are expected to decline in the future

  3. Agricultural exports are expected to remain stable in the future

  4. It is difficult to predict the future of agricultural exports


Correct Option: D
Explanation:

The future of agricultural exports is difficult to predict, as it depends on a number of factors, including population growth, economic growth, and climate change.

What are the major challenges facing the agricultural sector in India?

  1. Low productivity

  2. Lack of irrigation

  3. Soil degradation

  4. All of the above


Correct Option: D
Explanation:

The agricultural sector in India faces a number of challenges, including low productivity, lack of irrigation, and soil degradation.

How can the agricultural sector in India be improved?

  1. By investing in research and development

  2. By providing subsidies to farmers

  3. By improving irrigation infrastructure

  4. By all of the above


Correct Option: D
Explanation:

The agricultural sector in India can be improved by investing in research and development, providing subsidies to farmers, and improving irrigation infrastructure.

What is the role of the government in promoting agricultural exports?

  1. The government can provide subsidies to farmers

  2. The government can invest in research and development

  3. The government can negotiate favorable trade agreements

  4. All of the above


Correct Option: D
Explanation:

The government can promote agricultural exports by providing subsidies to farmers, investing in research and development, and negotiating favorable trade agreements.

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