WAEC Economics 2013 Theory — Question 4

Model answer

(a)(i) Peasant farming is farming carried out on a small scale, involving the use of small farm holdings; it is mainly for self-subsistence. (ii) Commercial agriculture is farming activity that entails the production of crops for sale rather than for the farmer's own consumption alone. (b) Ways agriculture contributes to economic development include: (i) It provides employment opportunity for a large number of people. (ii) It generates more employment opportunities generally in the economy. (iii) It relieves fluctuations and ensures stability of incomes and government tax revenue. (iv) It brings about investments in infrastructure such as roads, electric power, pipe-borne water etc. (v) It serves as a source of foreign earnings (through export of cash crops). (vi) It provides food for the citizens and raw materials for industries.