Question:

Which one of the following is the disadvantage of free trade for developing countries?

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Intensive subsistence farming uses small plots of land with high input of labour and simple tools to maximize yield, especially in densely populated regions.
  • Goods exchanging
  • Goods dumping
  • Goods purchasing
  • Goods selling
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The Correct Option is A

Solution and Explanation

Intensive subsistence farming is widely practiced in densely populated areas, particularly in countries like India and China.
Statement I: Correct. Due to high population pressure, land holdings are very small.
Statement II: Correct. Limited use of machinery and more reliance on manual labour is a key characteristic.
Statement III: Incorrect. It is not largely practised in Central Asia, but rather in South and Southeast Asia.
Statement IV: Correct. The yield per unit area is high, but due to heavy dependence on manual labour, the productivity per labour is low. So, the correct answer is (A): I, II and IV are correct.
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