Question

Write differences.

Rural economy and Urban economy.

Answer 1

Rural economy	Urban economy
1. Rural economy is mainly agrarian in nature.	The urban economy is based on markets and financial systems.
2. The occupation is mainly based on agriculture, pastoralism and allied activities.	The occupation is mainly based on manufacturing, trade and commerce, and professional services.
3. Rural population works in villages under the grim shadow of poverty, unemployment as well as pitiable economic conditions. Rural poor are small and marginal farmers, agricultural labourers and rural artisans.	The unemployment rate in urban India is approximately 15 to 25% of the total workforce. The rate of unemployment is higher among the urban educated.
4. Rural communities have less technological advancement and still use traditional farming methods and equipment.	Urban areas experience rapid technological advancement. Because of technological advancement, people live more comfortable lives.
5. The rural economy is based on subsistence. It was previously based on the zamindari system, but it is now transitioning to a market economy.	Cities' economic organisation is based on their market and financial systems. It is a profit-seeking market.
6. Since the rural economy is agrarian, it is dependent on natural resources.	Since markets are profit-driven, the profit motive guides most activities.
7. Occupations are not specialised. Unlike the urban economy, the division of labour is not seen.	Occupations are more specialised. There is a widespread division of labour based on skills and knowledge.