What economic constraint prevents farmers from buying improved seeds, fertilizers, tractors, or cattle?

• A. Lack of interest in farming
• B. Easy access to credit
• C. Capital (money) shortages
• D. Government subsidies

Answer: (C)

The main idea here is that upgrading farming inputs requires money up front. Improved seeds, fertilizers, tractors, and cattle involve costs you must pay before you can see any gains in output. When farmers don’t have enough cash or access to affordable credit, they can’t make these purchases even if they expect higher yields. That lack of capital is the key barrier preventing adoption of better inputs and equipment.

If credit were easy to get or subsidies were available, the obstacle would be much smaller, which is why those factors aren’t the constraint in this question. It isn’t a matter of interest in farming or a policy itself; the crucial issue is the money needed to invest upfront.