Factors of Production MCQs Quiz | Class 9
This Economics quiz for Class IX students covers the Unit ‘The Story of Village Palampur’. It focuses on Land, Labor, and Capital as the key factors of production. Answer the 10 questions below, check your result, and download the PDF solution for revision.
Understanding Factors of Production
The “Story of Village Palampur” illustrates how resources are combined to produce goods and services. The essential components required for production are known as Factors of Production. These are Land, Labor, Physical Capital, and Human Capital.
1. Land
Land is a natural resource and the first requirement for production. It includes water, forests, and minerals. In farming:
- Fixed Supply: The area of land under cultivation is practically fixed.
- Increasing Production: Since land is limited, ways to increase yield include Multiple Cropping (growing more than one crop per year) and Modern Farming Methods (using HYV seeds, irrigation, chemical fertilizers).
2. Labor
Labor refers to the people who do the work. It is the most abundant factor of production.
- Small Farmers: They cultivate their own fields with their families.
- Medium and Large Farmers: They hire farm laborers to work on their fields.
- Wages: Farm laborers get paid in cash or kind (crops). Wages are often less than minimum wage due to heavy competition for work.
3. Capital (Physical Capital)
Capital refers to the variety of inputs required at every stage of production. It is divided into two types:
| Type | Description | Examples |
|---|---|---|
| Fixed Capital | Tools and machines that can be used in production over many years. | Generators, turbines, tractors, computers, buildings. |
| Working Capital | Inputs that are used up during the production process. | Raw materials (clay for potter), money in hand for payments. |
4. Human Capital
This is the fourth requirement. You need knowledge and enterprise to be able to put together land, labor, and physical capital to produce an output.
Quick Revision Summary
- Green Revolution: Introduced in the late 1960s; shifted farming to High Yielding Variety (HYV) seeds.
- Non-Farm Activities: Dairy, small-scale manufacturing, shopkeeping, and transport are common non-farm activities in villages like Palampur.
- Credit: Small farmers borrow from moneylenders at high interest; large farmers use savings or bank loans.
Extra Practice Questions
- Q1: Why are wages for farm laborers in Palampur less than minimum wage? (Ans: High competition for work).
- Q2: What is the main production activity in Palampur? (Ans: Farming).
- Q3: Name one negative impact of the Green Revolution. (Ans: Loss of soil fertility due to chemical fertilizers).
- Q4: Is land considered a fixed or variable factor? (Ans: Fixed factor).
- Q5: What term is used for growing different crops in different seasons like Kharif and Rabi? (Ans: Multiple cropping system).
