Question

If farmers are unable to obtain capital from their own savings and have to borrow, it is
called.
a) Subsistence Farming
c) Lack of surplus
b) Modern Farming
d) Fixed capital​

Answer 1

Answer:

SUBSIDENCE FARMING

FOLLOW ME

Answer 2

If farmers are unable to obtain capital from their own savings and have to borrow, it is called Lack of Surplus.

Explanation:

• When the farmers are unable to obtain capital from their own savings and are inclined to borrow then it is a situation of lack of surplus.
• It means that the farmer’s purchases and revenue are exactly equal.
• He/she is not able to save anything from the output.
• Hence, he is forced to borrow in that situation.
• Due to this, there are no savings and farmers are unable to obtain capital.