Rural vs. urban income disparity in India: Identify which factors explain why average rural incomes are generally lower than average urban incomes. Many farmers are illiterate and have limited exposure to scientific/modern agricultural practices. Prices of primary products (farm/raw goods) are typically lower than prices of manufactured/finished products. Investment in agriculture has historically been low compared to investment in industry. Choose the correct combination of statements.

Given data

• We compare rural and urban incomes and evaluate three explanatory statements.
• Focus is on structural features: human capital, product pricing, and investment patterns.

Concept / Approach
Lower average rural income can stem from lower labor productivity and capital intensity, weaker value-addition (primary vs. manufacturing), and historically lower investment flows into agriculture relative to industry.

Step-by-step reasoning
(1) Illiteracy/limited scientific know-how → slower adoption of high-productivity inputs & techniques → lower yields and value-add ⇒ supports lower rural incomes.(2) Primary goods often sell at lower margins vs. manufactured goods that embed more value-addition, branding, and pricing power → depresses farm-gate earnings.(3) Historically, a smaller share of total investment goes to agriculture vs. industry/services, limiting mechanization, storage, logistics, and market access → constrains farm earnings.

Common pitfalls

• Assuming any one factor alone explains the gap; in practice it is multi-factor.
• Ignoring value-chain effects (processing, logistics, marketing) that favor urban sectors.

Final Answer
1, 2 and 3 are all valid reasons for lower rural incomes on average.