SOCIAL SCIENCE

ECONOMICS TEST-1
(4.05.22)
CORRECTION WORK

1. Below given picture is of the important factors of production

involved in the making of a shirt. Fill in the following blanks. (2)

Ans. The factors of production involved in the making of a shirt are:

a. Land and other natural resources- Land for the factory, raw cotton
b. Labour involved in the production process.
c. Physical capital- Money, factory, transport vehicle like trucks,
equipment and machinery.
d. Human Capital- Knowledge and enterprise of the owner/decision
maker of the factory like an industrialist.

2. Farming is the main production activity in Palampur. 75 per cent of the

people who are working are dependent on farming for their livelihood.
They could be farmers or farm labourers. The wellbeing of these people
is closely related to production on the farms. However, there is a basic
constraint in raising farm production. Mention one constraint referred
to here. (1)
Ans. Land is a fixed resource is the major constraint in Palampur as the
majority of land, including wasteland, had been brought under cultivation by
1960s.

3. How is fixed capital different from working capital? (1)

Fixed Capital Working Capital
Those materials that can be used The raw materials and money in
in the process of production for a hand that are required during the
long time are called fixed capital. production process are called
working capital.
Example- Tools, machines, Example- Clay used in pottery.
buildings.
1
4. What are the different ways of increasing production on the same
piece of land? (2)
Ans. There are two different ways of increasing production on the same
plot of land. They are:
1. Multiple Cropping- Multiple cropping involves growing more
than one crop on a piece of land during the year.
2. Modern Farming Methods- Modern farming methods involve the
use of high-yielding variety seeds, irrigation, and chemical fertilisers
and pesticides to produce maximum output from the same piece of
land.

5. In what ways is capital raised by medium and large farmers different

from the way it is raised by small farmers? (2)
Ans. Medium and large farmers retain a part of their produce and sell the
surplus in the market. This provides them with the required capital for
farming. Thus, medium and large farmers have ready capital with them
for the next agricultural season as savings.

The small farmers begin an agricultural season with no working capital

and end the season on more or less the same note. They mostly borrow
money from medium and large farmers or moneylenders. They also work
as farm labourer on their fields to earn more money.

6. The Green Revolution in India began in the mid 1960s making a

transition/shift from traditional agriculture in India. Mention any one
positive and one negative impact of the Green Revolution. (1)
Ans. Positive impact- Increase in food crop production due to the use
modern methods of farming, particularly the HYV seeds.

Negative Impact- Increased use of chemical fertilisers over time has

declined the soil fertility.

7. The minimum wages for a farm labourer set by the government is Rs

300 per day (March 2017), but they are paid less. Justify the statement
in one point. (1)
Ans. People are paid less than the minimum wages set by the
government because there is heavy competition for work among the farm
labourers, so people agree to work for lower wages.