HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

Haryana State Board HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur Textbook Exercise Questions and Answers.

Haryana Board 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

HBSE 9th Class Social Science Economics The Story of Village Palampur Intext Questions and Answers

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Class 9 Economics Chapter 1 The Story of Village Palampur Answers HBSE Question 1.
The following table 1.1 shows the and under cultivation in India in units of million Hectares. Plot this on the graph provided. What does the graph show ? Discuss in class.

Cultivated Area
1950 120
1960 130
1970 140
1980 140
1990 140
2000 140

(i) Is it important to increase the area under irrigation why ?
(ii) You have read about the crops grown in Palampur. Fill the following table based on information on the crops grown in your region.

Name of the crop Month,

shown

Month,

invested

Source of irrigation (Rain, tanks, tubewells, canals etc.)

Answer:
(i) The land available for cultivation is practically fixed. Therefore, to grow more from’ the same land is the only way of increasing production. To grow more from the same land is possible only through well developed irrigation. Therefore , it is important to increase area under irrigation.

(ii) Students are required to do it themselves.

HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

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(i) What is the difference between multi-ple cropping and modem farming method,
Answer:
Difference between multiple cropping and modern farming:
1. Multiple cropping-To grow more than one corp on a piece of land during the year is known as multiple cropping. Different crops are grown in different seasons on the same land. For growing more than one crop in a year on the same land a well developed irrigation system is necessary.

2. Modem methods of fanning-The other way of increasing production is to use modern farming methods for higher yield. This can be done by using high yielding variety of seeds. These seeds need good irrigation system, chemical fertilizers and pesticides. Farm machines like tractors and threshers, make ploughing and harvesting faster.

(ii) The following table shows the production of wheat and pulses in India after the green revolution in units of million tonnes. Plot this on a graph. Was the green revolution equally successful for both the crops discuss.

Production of pulses Production of wheat
1965-66 10 10
1960- 71 12 24
1980-81 H  36
1990-91 14 55
2000-01 11 70

HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur - 3

Answer:
The green revolution is not equally successful for both the crops. Whereas production, of wheat has increased manifold over the years but production of pulses is- almost stable. Production of pulses has increased form 10 to 11 between the years 1965 to 2001. But that of wheat has increased from 10 to 70 between the years 1965 to 2001.

HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

(iii) What is the working capital required by the former using modern farming methods ?
Answer:
The working capital required by the farmer using modem farming methods is HYV seeds, chemical fertilizers and pesticides.

(iv) Modem fanning methods require the farmer to start with more cash than before why ?
Answer:
The working capital required by the farmer using modem farming method is chemical fertilizers, pesticides and HYV seeds. Also they require good irrigation system. The HYV seeds, chemical fertilizers and pesticides are prepared in industries and therefore are costlier than traditional seeds and natural fertilizers. For developing a good irrigation system a farmer needs to get electric-run tubewells and electricity connection.

For these he has to pay charges. Also, some of the farmers buy farm machinery like, tractors and tubewells which make ploughing and harvesting faster. For all the above-mentioned things a farmer requires good cash. Therefore, we can say that modern farming methods require the farmer to start with more cash than before.

9th Class Economics Chapter 1 HBSE

Suggested Activity

During your field visit talk to some farmers of your region. Find out:
1. What kind of fanning methods-modern or traditional or mixed-do the farmers use. Write a note.
2. What are the sources of irrigation?
3. How much of the cultivated land is irrigated? (Very little/nearly half/majority /all).
4. From where do farmers obtain the inputs that they require?
Answer:
Students are required to do it themselves.

The Story of Village Palampur Chapter 1 HBSE 9th Class

Suggested Activity

After reading the following reports from newspapers/ magazines, write a letter to the Agriculture Minister in your own words telling him how the use of chemical fertilizers can be harmful. ………… Chemical fertilizers provide minerals which dissolve in water and are immediately available to plants. But these may not be retained in the soil for long. They may escape from the soil and pollute ground water, rivers and lakes, chemical fertilizers can also kill bacteria and other microorganisms in the oil. This means some time after their use, the soil
will be less fertile than over before …………..(Source Down to Earth, New Delhi).

……….. The consumption of chemical ferdizliers in Punjab is highest in the country. The continuous use of chemical fertilizers, has led to degradation of soil health. Punjab farmers are now forced to use more and more chemical fertizliers and other inputs to achieve the same production level. This means cost of cultivation is rising very fast ………… (Source: The Tribune, Chandigarh)
Answer:
To;
The Agriculture Minister
Dept, of agriculture
New Delhi
Sir/Madam,
Sub: The effects of chemical fertilizers

This letter is to divert your attention to the ill effects of chemical fertilisers on our health and soil fertility. To* grow more from the same land farmers use these fertilizers in very high quantity without realizing its effects. These fertilizers escape from the soil and pollute ground water, rivers and lakes. When we drink this polluted water it effects our health. Also, these chemical fertilisers kill bacteria and other micro-organisms in the soil. It effects the fertility of soil.

HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

The continuous use of chemical fertilisers has led to the degradation qf soil health. The farmers are now forced to use more and more chemical fertilisers and other inputs to achieve the same production level. This has increased the cost of production as a result the prices of crops have increased. As chemical fertilisers are harmful for our environment and health government should restrict their use. It should encourage farmers to use bio fetilisers and manure.

I hope the ministry concerned will pay attention to it.
Thanking you
Yours Sincerely
X.Y.Z.

HBSE 9th Class Chapter 1 The Story of Village Palampur Economics

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(i) In Picture 1.5, can you shade the land cultivated by the small farmers?
HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur - 1
HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur - 2

(ii) Why do so many families of farmers cultivate such small plots of land?
Answer:
Because of the increasing population land has been divided and sub-divided between different people. As a result size of land holdings has decreased.

(iii) The distribution of farmers in India and the amount of land they cultivate is given in the following graph Li. Discuss in the classroom.
Answer:
Do it yourself.

HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

Let’S Discuss

(i) Would you agree what the distribution of cultivated land is unequal in Palampur? Do you find a similar situation for India? Explain.
Ans.
Yes, we agree that the distribution of cultivated land is unequal in Palampur Similar situation is pævailing in India. Large number of small farmers cultivate small plots of land of less than I hectare 20% of the large and medium farmers. Cultivate 36% of the land.

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Question 1.
Why are farm labourers like Dala and Ramkali poor?
Answer:
Dala and Ramkali are landless labourers. They work on other people’s field for wages and sometimes even go to a nearby village for work. But the wages that they get are less than the minimum wage set by the government. Therefore, they are poor.

Question 2.
Gosaipur and Majauli are two villages in North Bihar. Out of a total of 850 households in the two villages. There are more their 250 men who are employed in rural Punjab and Haryana or Nagpur. Such migration is common in most villages across India. Why do people migrate can you decribe (based on your imagination) the work that the migrants of Gosaipur and Majauli might do at the place of destination ?
Answer:
People migrate form rural to urban areas in search of jobs. The migrants of Gosaipur and Majauli perform labour work at the place of destination. They work in brick making units, as a labourer in building construction, they become rikshawpullers or work as helpers in shops and small restaurants.

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Let us take three fanners Each has grown wheat on his field though the production is different (see Column 2). The consumption of wheat by each farmer family is the same (Column 3). The whole of surplus wheat this year is used as capital for next years’s production. Also suppose, production is twice the capital used in production. Complete the tables.
Farmer :1

Production Consuption Surplus = Pro-duction – Con-sumption Capital for the next year Production
Year 1 100 40 60 60
Year 2 120 40
Year 3 40

Farmer :2

Production Con-suption Surplus Capital for the next year
Year 1 80 40
Year 2 40 40
Year 3 40

Farmer :3

Production Con-suption Surplus Capital for the next year
Year 1 60 40
Year 2 40
Year 3 40

Lets Discuss

(i) Compare the production of wheat by three farmers over the years.
Answer:
The production of three famrers is different from year to year 1st famrers production has increased every year, whereas second farmers, production level is constant. But the produciton of third farmer has declined every year. In fact, in year three his production is zero.

(ii) What happens to famrer 3 in year 3? Can he continue production ? What will he have to do to continue production?
Answer:
In the year 3, the produciton of farmer 3 has fallen to zero. He cannot continue production becaue he doesn’t have the capital. To continue produètion he has to borrow capital. The famrel can provide this capital. Also, he has to follow modern farming. methods If he wants to continue production for many years.

HBSE 9th Class Social Science Solutions Economics Chapter 1 The Story of Village Palampur

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Question 1.
What capital did Mishrilal need to set up- his Jaggery manufacturing unit crushing machine.
Answer:
He needs mechanical sugarcane crushing machine.

Question 2.
Who provides? the labour in this case?
Answer:
Mishrilal himself and his family members provide the labour.

Question 3.
Can you guess why mishrilal is unable to increase his profit.
Answer:
Mishrilal is unable to increase his profit because’he manufactures jaggery at very small scale. Also, he does not sell it directly into the market but through middlemen.

Question 4.
Would you think of any reasons when he might face a loss.
Answer:
He might face a loss if other farmers refused to sell him sugarcane or in case of crops failure.

Question 5.
Why does Mishrilal sell his jaggery, to traders in Shahpur and not in his village ?
Answer:
Mishrilal sells his jaggery to traders in Shahpur because it is the nearest market.

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Question 1.
In what ways is Kareem’s capital and labour different from Mishrilal’s:
Answer:
Mishrilal’s capital is a manufacturing capital, whereas Kareem’s capital is a computer which used for teaching Kareem works in tertiary sector therefore, his jobs is white colar job whereas Mishrlal performs the work of labourer.

Question 2.
Why didn’t someone start the computer centre earlier? Disuss some of the possible reasons.
Answer:
Some one didn’t start the computer centre earlier due to the following reasons:
(i) People were not aware of computers:
(ii) People were uneducated,
(iii) Computer teachers were not available in the village and nobody was ready to come from outside.

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Let’s Discuss

Question 1.
What is Kishora’s fixed capital?
Answer:
Wooden cart and buffalo.

Question 2.
What do you think would be his working capital?
Answer:
His working capital is fooder.

Question 3.
In how many production activities is Kishora involved?
Answer:
Three.

Question 4.
Would you say that Kishora has benfitted from better roads in Palampur ?
Answer:
Yes, he has benefitted from them. Because of better roads he is able to ferry goods through his wooden cart. Also, it will effect the health of his buffalo less.

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Question 1.
Every village in India is surveyed once in ten years during the census and some of details are presented in the following format. Fill up the following based on information on Palampur.
(a) Location:
(b) Total area of the village:
(c) Land use (in hectares):

Cultivated Land Land not available for cultivation
Irrigated Unirrigated (Areas covering dwellings, roads, ponds, grazing ground)
26 hectares

(d) Facilities:

Educational
Medical
Market
Electricity supply
Communication
 Nearest town

Answer:
(a) Western part of Uttar Pradesh.
(b) 226 hectares:
(c) Irrigated-200 hectares; un-irrigated~0 hectares.
(d) Two primary schools, one high school.

  • Primary health centre run by government, one private dispensary.
  • Nearest market at Raiganj.
  • Electric connections in most of the houses.
  • Connected by telephone.
  • Nearest town: Shahpur

Question 2.
Modem farming methods require more inputs which are manufactured in industry. Do you agree ?
Answer:
Modem farming methods require high yielding varieties of seeds. Compared to the traditional seeds, HYV seeds needed plenty of water and also chemical fertilizers and pesticides to produce best results. Higher yields were possible only from a combination of HYV seeds, irrigation chemical fertilizers, pesticides etc.

Question 3.
How did the spread of electricity help farmers in Palampur?
Answer:
Electricity came early in Palampur. It helped in developing system of irrigation. With the coming of electricity, Persian wheels were replaced with electric-run tubewells. Electric-run tubewells could irrigate much large areas of land more effectively. The first few tubewells were installed by the government. Soon, however, farmers started setting up private tubewells. As a result, by mid 1970’s the entire cultivated area of 200 hectares (ha.) was irrigated.

Question 4.
Is it important to increase the area under irrigation? Why?
Answer:
The land available for cultivation is practically fixed. Therefore, to grow more from the same land is the only way of increasing production. To grow more from the same land is possible only through, well developed irrigation. Therefore, it is important to increase area under irrigation.

Question 5.
Construct a table on the distribution of land among the 450 families of Palampur.
Answer:

Total number of families Landless farmers Small farmers (less than 2 hectares, of land) Medium and large farmers (more than 2 hectares of land)
450 150 240 60

Question 6.
Why are the wages of farm labourers in Palampur less than minimum wages ?
Answer:
The minimum wages for a farm labourer set up by the government is Rs. 60 per day, but farm labourers in Palampur gets only Rs. 35-40 per day. It is because there is heavy competition for work among the farm labourers in Palampur, so people agree to work for lower wages.

Question 7.
In your region, take to two labourers. Choose either from labourers or labourers working at construction sites. What wages do they get ? Are they paid in cash or kind ? DQ they get work regularly ? Are they iun debt ?
Answer:
Do it yourself.

Question 8.
What are the different ways of increasing production on the same piece of land ? Use examples to explain.
Answer:
The are two different ways of increasing production on the same piece of land. The one way is multiple cropping. To grow more than one crop On a piece of land during the year is known multiple cropping. The other way is to use modem farming methods for higher yield. Compared to traditional seeds, the HYV seeds produced much greater amounts of grain on a single plant. As a result the same piece of land would now produce far larger quantities of food-grains than was possible earlier.

Question 9.
Describe the work of a fanner with 1 hectare of land.
Answer:
The farmer with one hectare of land cultivate his own field. He also works as a farm labourer for medium and large farmers. In return he gets wages either in cash or kind.

Question 10.
How do the medium and large farmers obtain capital for farming’? How is it different from the small fanners ?
Answer:
The medium and large farmers are able to save some of their earnings. They use these savings to buy capital for the next season. Thus, they are able to arrange for the capital for fanning from their own savings. On the other hand, small farmers have to borrow money to arrange for the capital. They borrow from the large farmers or the village moneylenders or the traders who supply various inputs for cultivation. *

Question 11.
On what terms did Savita get a loan from Tejpal Singh? Would Savita’s condition be different if she could get a loan from the bank at a low rate of interest?
Answer:
Savita is a small farmer. She doesn’t have the money to buy working capital. Therefore, she borrowed some money from Tejpal Singh, a large farmer. Tejpal Singh gave her a loan at an interest rate of 24 percent for four months. Also, he made her agree to work on his fields as a farm labourer during the harvest season at Rs. 32 a day. Savita was a mother of three children, had a lot of household work and she even had to work on her own field. But then also she agreed to Tejpal’s condition. The conditions would have been different if she could get a loan from bank. In that case the rate of interest wouldhave been low and also there would have been no need to work on Tejpal’s farm.

Question 12.
Talk to some old residents in your region and write a short report on the changes in irrigation and changes in production methods during.the last 30 years.
Answer:
During the last 30 years irrigation and production methods have undergone a drastic change. With the coming of electricity irrigation techniques have changed. Persian wheels are replaced by electric tubewells. Electric tube- wells could irrigate much larger areas of land more effectively. In last 30 years, farming methods are greatly revolutionized. Modem farming methods are used for higher yield. Earlier traditional seeds were used in cultivation. These seeds had relatively low yield. They require less irrigation. Earmers used cow- dung and other natural manure as fertilizers.

But nowadays farmers use high-yielding varieties (HYVs) of seeds. Compared to traditional seeds, HYV seeds produced much greater amounts of grain on a single plant. As a result the same piece of land would now produce for larger quantities of foodgrains than was possible earlier. But these seeds needed plenty of water, chemical fertilizers and pesticides to produce best results. Thus, higher yields were possible only from a combination of HYV seeds, irrigation, chemical fertilizers, pesticides etc.

Question 13.
What are the non-farm production activities taking place in your region ? Make a shortlist.
Answer:
Non-farm production activities taking place in our region are:
1. Shop-keeping.
2. Small-scale manufacturing.
3. Transportation (Rickshawalas, Auto rickshawalas) etc.
4. Entertainment (Cinema halls).

Question 14.
What can be done so that more non-farm production activities can be started in villages ?
Answer:
It is important to increase non-farm production activities in villages. It helps in providing permanent gainful employment to small and landless farmers. But to start non-farm activities people require capital. For this it is important that loan be available at low rate of interest. Another thing which is. essentiahfor expansion of non-farm activities is to have markets where goods and services produced can be sold. Villages can be connected to towns and cities through good roads, transport and telephone.

HBSE 9th Class Social Science Economics The Story of Village Palampur Textbook Questions and Answers

Question 1.
What are the different types of production activities in the village?
Answer:
There are two types of production activities in the village –
(i) farming and,
(ii) non-farm activities.

The non-farm activities include small manufacturing, transport and shop-keeping.

Question 2.
Define factors of production.
Answer:
The various inputs required to produce goods and services are called as factors of production. There are mainly four factors of production: land, labour,’ physical capital and human capital.

Question 3.
Distinguish between fixed capital and working capital.
Answer:
The physical capital which can be used in production over many years is called as fixed capital. For example: tools, machines and buildings. On the other hand, the physical capital which gets completely used up during the production process is called as working capital. For example raw materials and money in hand.

Question 4.
What is human capital?
Answer:
The knowledge and enterprise required to put together land, labour and physical capital to produce an output either for self-consumption or for sale in the market is called as human capital.

Question 5.
Define multiple cropping.
Answer:
To.grow more than one crop on a piece of land during the year is known as multiple cropping. It is the most common way of increasing production on a given piece of land.

Question 6.
Mention the two ways of increasing production from the same land.
Answer:
The two ways of increasing production from the same land are:
(a) Multiple cropping and
(b) Using modem farming methods

Question 7.
What is the working capital required by the farmer using modern farming methods?
Answer:
The working capital required by the farmer usina modern farming methods is HYV seeds, chemical fertilizers arid pesticides.

Question 8.
What is surplus?
Answer:
The produce left over after self-consumption is called as surplus. This surplus is brought Over to the market for sale.

Question 9.
Briefly explain the four factors of production.
Answer:
Every production is organized by combining land, labour, physical capital and human capital which are known as factors of production. These factors are explained below:

1. Land-If is the first requirement for the production of goods and services. The land required for farm activities is practically fixed.

2. Labour-The second requirement is labour i.e. people who will do the work. Some activities require highly educated workers like banking and some require workers, for manual working for example carpenter.

3. Physical capital-Physical capital es the variety of inputs required at every stage during production. For example tools, buildings, raw materials etc. Physical capital is of two types: fixed capital and working capital.

4. Human capital-The knowledge and enterprise required to put together land, labour and physical capital (or producing an output either for self-consumption or to sell in the market is called, as a human cap

Question 10.
What is the main constraint on land?
Answer:
In villages farming is the main production activity. Most of the people are ependent on farming for their livefihood. The well being of these people is closely related to production in the farms. The farm production depends upon the land area uqder cultivation. But there is one constraint on it. Land area under cultivation is practically fixed. There has been no expansion in land area under cultivation since 1960. By then, some of the wastelands in the village had been converted to cultivable land. There exists no further scope to increase farm production by bringing new land under cultivation.

Question 11.
What is multiple cropping? Explain by giving an example.
Answer:
To grow more than one crop on a piece of land during the year is known as multiple cropping. It is the mostcommon way of increasing production. During different seasons different crops are grown on the same piece of land. The farmers are able to grow different crops in a year due to well developed irrigation system in most parts of the country

Example : In Palampur all land was Now, the only way of increasing farm production was to grow more than One crop on the same land during the year. Therefore, during rainy season (Kharif) farmers grow jowar and bajra. It was followed by cultivation of potato between October and December. In the winter season (Rabi), fields were sown with wheat. A part of the land area was also devoted to sugarcane which was harvested once every year.

Question 12.
Who provide the labour for farm activities?
Answer:
Farming requires good deal of hard work. Small farmers along with their families cultivate their own fields. Thus, they provide labour required for farming themselves. Medium and large farmers hire farm labourers to work on their fields. Farm labourers come from either landless families of families cultivating small plots of land. These labourers are paid wages by the farmer for whom they work. Wages are paid either in cash or in kind. Wages vary widely from region to region, from crop to crop, from one wide variation in the duration of employment A farm labourer might be employed on a daily harvesting for the whole year.

Question 13.
What is the aim of production? How is it organised?
Answer:
The aim of production is to produce the goods and services that we want. There are four factors of production yiz, land, labour, physical capital and human capital. Every production is organised by combining land, labour, physical capital and human capital. These factors of production are explained below:

1. Land-If is the first requLrement for production of goods and services. The land required for farm activities is practically fixed.

2. Labour-The second requirement is labour. By labour we mean people who will do the work. Some production activities require highly skilled and educated workers to perform tire necessary task. Other activities require workers who can do manual work. Each worker is providing the labour necessary for production.

3. Physical capital-It is the third requirement. Physical capital means the variety of inputs required at every stage during production. The items that come under physical capital are:

(i) Tools, machines and buildings-Tools, machines and buildings can be used in production over many years, and are called as fixed capital.

(ii) Raw materials and money in hand-Production requires a variety of raw materials such as the yarn used by weaver and the clay used by the potter. Also, some money is always required during production to make some payments and buy other necessary items. Raw materials and money in hand are called working capital.

4. Human capital-The fourth requirement of production is human capital. The knowledge and enterprise required to put together land, labour and physical capital to produce an output either for self consumption or for sale in the market is called as human capital.

Question 14.
Write a short note on green revolution.
Answer:
The green revolution started in India in the late 1960’s It introduced the Indian farmer to the cultivation of wheat and rice using high-yielding varieties of seeds (HYV). These seeds give much greater amounts of grain on a Single plant as compared to traditional seeds. As a result, the same piece of land would now produce for larger quantities of foodgrains than was possible earlier.

HYV seeds, however, needed plenty of water, chemical fertilizers and pesticides to produce best results. Higher yields were possible only from a combination. of HYV seeds, irrigation, chemical fertilisers, pesticides etc. Farmers of Punjab, Haryana and Uttar Pradesh were the first to try out the modem farming method in India. The farmers in these regions set up tubewells for irrigation and made use of HYV seeds, chemical fertilisers and pesticides.

Some of them also bought farm machineries like tractors and threshers. They were rewarded with high yields of wheat. But green revolution did not come without negative effects. Scientific reports indicated that modern farming methods have overused the natural resource base. In many areas there was loss of soil fertility due to increased use of chemical fertilizers. The continuous use of groundwater for tubewell irrigation has reduced the wafer table below the ground. This is a huge loss. Therefore, one must take care of the environment to ensure future development of agriculture.

Question 15.
How do fanners arrange for the capital needed in fanning?
Answer:
Modem farming methods require a great deal of capital, therefore farmers now need more money than before. Different farmers have different sources of capital. Most of the small farmers borrow money from large farmers or the village money-lenders or the traders who supply various inputs for cultivation. The rate of interest oh such loans is very high. They are put to great distress to repay the loan. Sometimes the small farmers have to work on the fields of medium and large farmers at very low wages to repay the loan. .

In contrast to small farmers, the medium and large farmers have their own savings from farming. These farmers sell their surplus produce in market and get good, earning. A part of these earnings are saved and kept for buying capital for the next season. Thus, they are able to arrange for the capital for farming from their own savings.

Question 16.
What is the condition of the non-farm sector in villages? How can these activities Be increased?
Answer:
The non-farm activities include small manufacturing, transport shop-keeping etc. At present, the non-farm sector in the village is not very large. Out of every 100 workers in the rural areas in, India, only 24 are engaged in non-farm activities. Though there is a Variety of non-farm activities in the village, the number of people employed in each is quite small. Unlike farming, non-farm activities require little land. People with some amount of capital can set up non-farm activities.

The capital required can be mobilised either from one’s own savings or by taking a loan. It is important that loan be available at low rate of interest so that even people without savings can start some non-farm activities. Another thing which is essential for non farm activities is to have market where the goods and services can be sold. As more villages get connected to towns and cities through good roads, transport and telephone, it is possible that the opportunities for non-farm activities production in the village would increase in the coming years.

Question 17.
How are three factors of production land, labour and capital used in farming ?
Answer:
Among these factors of production, labour is the most abundant factor of production. There are many people who are willing to work as farm labourers in the villages whereas the opportunities of work are limited. They belong to either landless families or small farmers They are paid low wages and lead a difficult life. In contrast to labour, land is a scarce factor of production. Land has been used to its maximum. There can be no expansion in cultivated land area.

Moreover, even the existing land is distributed unequally among the people engaged in farming. There are laTge number of small farmers who cultivate small plots of land, and live in conditions not much better than the landless farm labourers. To make the maximum use of the land farmers use multiple cropping and modem methods of farmingrBoth these have led to increase in production of crops.

Modern farming methods require a great deal of capital. Small farmers usually need to borrow money to arrange for the capital and are put to great distress to repay the loan. Therefore, capital too is a scarce factor of production particularly for the small farmers. Though both land and capital are scarce, there is a basic difference between the two factors of production. Land is a natural resource. Whereas capital is man made. It is possible to increase capital, whereas land is fixed. Therefore, it is very important that we take good care of land and other natural resources used in farming.

Some Important Facts

1. Manufacturing-When with the help of few primary goods some other goods are produced, it is called as manufacturing.
2. Inputs or factors-The resources used for producing goods and services are called as factors of production. There are three factors of, production: land; labour and physical capital.
3. Fixed capital-The physical capital that can be used in production over many years is Called as fixed capital. For example: Tools, machines, buildings etc.
4. Working capital-Raw materials and money in hand are called working capital.
5. Kharif crops-Crops grown during, rainy season are called as Kharif crops. For example Jowar and Bajra.
6. Rabi crops-Crops cultivated during winter season are called as Rabi crops. For example Wheat.
7. Multiple cropping-To grow more than one crop on a piece of land during the year is known as multiple cropping.
8. Yield-A crop produced on a given piece of land during a single season is called a yield.

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