In the context of rural areas, land inequality is both a

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In the context of rural areas, land inequality is both a cause and effect of assets inequality.

Which of the following would best serve as an example for the above statement?

a. Small land holders make less profit on land than large holders.
b. Large land holders in rural areas exploit the small farmers and that has been the cause of naxalism.
c. Large land holders lobbies and corner major portions of agricultural inputs like fertilizers.
d. Large land holders are able to influence installation of irrigation facilities, and availability of more irrigational facilities enables large farmers to generate surplus and hence buy more land.
e. Large landholders enjoy economic security that enables them to invest more on land.
Source: — Critical Reasoning |

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by deloitte247 » Thu Jul 26, 2018 5:03 am

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Option A - INCORRECT.
This option would have been the most suitable but was not referred to in rural context. Although, it has been proven that large landholders make more profit than small landholders.

Option B - INCORRECT.
Exploitation of small farmers by large landholders cannot be classified as one of the reasons for asset inequality. Rather i see it as rebellion against marginalization.

Option C - INCORRECT.
Large landholder lobbing and cornering fertilizers and agricultural inputs does not increase their assets, rather, it may increase their agricultural production. However this option is not suitable to describe the argument on asset acquisition inequality.

Option D - CORRECT.
This option most serve as an example to why there is land inequality. Large landholders are able to influence installation of irrigation facilities, and the availability of this facilities enables large farmers to generate surplus and hence buy more land compared to small land holders. This reason is the cause for Land and Asset inequality.

Option E - INCORRECT.
Both small and large landholders experience economy security, just that large landholders progress faster than the small landholders. This logic over the years has helped the large landholders to acquire or invest more on land.