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Class IX - Economics

Class IX - Economics

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Published by Mantra
Latest NCERT Class IX - Economics, with all chapters combined into one document unlike the chapter wise downloading at the official NCERT website.
Latest NCERT Class IX - Economics, with all chapters combined into one document unlike the chapter wise downloading at the official NCERT website.

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Published by: Mantra on Sep 28, 2008
Copyright:Attribution Non-commercial


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 The Story of Village Palampur 1
 The purpose of the story is to introducesome basic concepts relating to productionand this we do through a story of a hypothetical village called Palampur.Farming is the main activity inPalampur, whereas several other activities such as small scalemanufacturing, dairy, transport, etc. arecarried out on a limited scale. Theseproduction activities need various typesof resources — natural resources, man-made items, human effort, money, etc. As we read through the story of Palampur, we will learn how various resourcescombine to produce the desired goods andservices in the village.Palampur is well-connected withneighbouring villages and towns. Raiganj,a big village, is 3 kms from Palampur. Anall weather road connects the village toRaiganj and further on to the nearest small town of Shahpur. Many kinds of transport are visible on this road startingfrom bullock carts,
, bogeys (woodencart drawn by buffalos) loaded with jaggery (
) and other commodities to motor  vehicles like motorcycles, jeeps, tractorsand trucks. This village has about 450 families belonging to several different castes. The80 upper caste families own the majority of land in the village. Their houses, someof them quite large, are made of brick withcement plastering. The SCs (dalits)comprise one third of the population andlive in one corner of the village and inmuch smaller houses some of which areof mud and straw. Most of the houses haveelectric connections. Electricity powersall the tubewells in the fields and is usedin various types of small business.Palampur has two primary schools andone high school. There is a primary healthcentre run by the government and oneprivate dispensary where the sick aretreated. The description above shows that Palampur has fairly well-developedsystem of roads, transport, electricity,irrigation, schools and health centre.Compare these facilities with those in your nearby village. The story of Palampur, an imaginary  village, will take us through the different types of production activities in the village. In villages across India, farmingis the main production activity. The other production activities, referred to as non-farm activities include smallmanufacturing, transport, shop-keeping,etc. We shall take a look at both thesetypes of activities, after learning a few general things about production.
The Story of Village PalampurThe Story of Village Palampur
Picture 1.1
Scene of a village 
2 Economics
Organisation of Production
 The aim of production is to produce thegoods and services that we want. Thereare four requirements for production of goods and services. The first requirement is
, andother natural resources such as water,forests, minerals. The second requirement is
, i.e.people who will do the work. Someproduction activities require highly educated workers to perform thenecessary tasks. Other activities require workers who can do manual work. Each worker is providing the labour necessary for production. The third requirement is
, i.e. the variety of inputs requiredat every stage during production. What are the items that come under physicalcapital?(a)
Tools, machines, buildings:
Tools andmachines range from very simple toolssuch as a farmer’s plough tosophisticated machines such asgenerators, turbines, computers, etc. Tools, machines, buildings can be usedin production over many years, andare called
fixed capital
Raw materials and money in hand:
Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by thepotter. Also, some money is alwaysrequired during production to makepayments and buy other necessary items. Raw materials and money inhand are called
 working capital
.Unlike tools, machines and buildings,these are used up in production. There is a fourth requirement too. You will need knowledge and enterprise to beable to put together land, labour andphysical capital and produce an output either to use yourself or to sell in themarket. This these days is called humancapital. We shall learn more about 
in the next chapter.In the picture, identify the land, labour and fixed capital used in production.
Picture 1.2
 A factory, with several labourers and heavy machines 
Every production is organised by combining land, labour, physical capitaland human capital, which are known asfactors of production. As we read throughthe story of Palampur, we will learn moreabout the first three factors of production.For convenience, we will refer to thephysical capital as the capital in thischapter.
Farming in Palampur
1.Land is fixed
Farming is the main production activity in Palampur. 75 per cent of the people who are working are dependent onfarming for their livelihood. They could be farmers or farm labourers. The well- being of these people is closely related toproduction on the farms.But remember that there is a basicconstraint in raising farm production.Land area under cultivation is practically fixed. Since 1960 in Palampur, there has been no expansion in land area under 

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