Class 9 Economics Chapter 1 The Story of the village Palampur Class 9, Economics, NCERT Solutions, Social Science

After Facebook became popular and spread across campuses, Zuckerberg realized he needed to recruit additional employees. He hired two people, an engineer (Dustin Moskovitz) and a spokesperson (Chris Hughes), who both allocated hours to the project, meaning that their invested time became a factor of production. Mark Zuckerberg assumed the risk for the success or failure of his social media network when he began allocating time from his daily schedule toward that activity. When he coded the minimum viable product himself, Zuckerberg’s labor was the only factor of production. While land is an essential component of most ventures, its importance can diminish or increase based on industry. For example, a technology company can easily begin operations in the founder’s home with zero business investment in land.

Capital is essentially the money used at the time of starting a business. Simply it is the resource that can either be money in cash form or the form of the kind. These can later be used for purchasing inputs and raw materials. Remember, goods and services are scarce because the factors of production used to produce them are scarce.

What are some examples of capital as a factor of production?

• With development of technology, tube wells were used for more better and effective irrigation.
• He raised venture capital money to rent office space, hire more employees, and purchase additional server space for development.
• They borrow from large farmers or the village moneylenders or the traders, who supply various inputs for cultivation.
• Money and raw material in hand are generally known as working capital.

Production, such as manufacturing, can be tracked by certain indexes, including the ISM manufacturing index. Mishrilal needed mechanical sugarcane crushing machines, run on electricity, to set up his jaggery manufacturing unit. An increase in production will ultimately lead to economic growth. GDP can be merely defined as a measure for representing the overall production of all services and goods in an economy. An increase in economic growth ultimately raises the living standards through raising wages and lowering costs. (c) Some also used farm machinery like tractors and threshers, which made ploughing and harvesting faster.

• The introduction of technology into a labor or capital process makes it more efficient.
• Therefore, it is very important that we take good care of land and other natural resources used in farming.
• It is defined as the particular inputs that are highly needed for producing services and goods.
• For example, the construction worker at a hotel site is part of the labor, as is the waiter who serves guests or the receptionist who enrolls them into the hotel.
• Kareem has also employed educated and qualified computer teachers, whereas Mishrilal’s labour is mainly unskilled labour.
• Depending on the context, some factors of production might be more important than others.

Factors of Production

(b) The farm holdings in the village are very small of about 2 hectares in size and production of sugarcane is low as more area is under wheat, so raw material is also less. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans. Capital differs based on the worker and the type of work being done. For example, a doctor may use a stethoscope and an examination room to provide medical services.

This means that change within demand can never change the overall land supply. 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. Secondly, use of HYV seeds need of plenty of water to give best results.

(iii) The rate of interest on such loans is very high. They are put to great distress to repay the loan, which is not so in the case of medium and large farmers. (ii) In contrast, the small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation.

While the land is an important component of most businesses, its value can fluctuate depending on the industry. A technology company, for example, can easily start operations with no upfront land investment. Land, on the other hand, is the most important component of any real estate venture. Find the answer to this question and access a vast question bank that is customised for students. (v) He has no working capital so he is also not able to buy modern machinery, HYV seeds or insecticides and pesticides.

Answer (Detailed Solution Below)

The production of wheat of the the most abundant factor of production is first farmer increased from 100 to 160. (ii) Compare the production of wheat by the three farmers over the years. (c) Those who went to rural areas of Punjab and Haryana will probably work as farm labourers since agriculture is the main occupation of the rural people in these states. Finally, capital refers to the capital goods needed to start or grow a business.

Entrepreneurship As a Factor

Throughout the articles, it can be observed that there are four main factors of production namely land, capital, entrepreneurship, and labor in which land is the most redundant factor. In addition to this, the factors of production have also been discussed in this article. In economics the most abundant factor of production is land. In the ever-changing world economy, an exponential increase in the complexity of the production process can be noticed.

Labor is the effort that people contribute to the production of goods and services. Labor resources include the work done by the waiter who brings your food at a local restaurant as well as the engineer who designed the bus that transports you to school. It includes an artist’s creation of a painting as well as the work of the pilot flying the airplane overhead. If you have ever been paid for a job, you have contributed labor resources to the production of goods or services.

What are the non farm activities taking place in your region (or Palampur)? (ii) The rate of interest charged by Tejpal Singh was higher than that of banks. If Savita had taken the loan from the bank, interest would have been lower and she could have easily repaid the loan and her condition would have been far better. (ii) Production is very low and it is very difficult for the farmer to provide for his family. (ii) They do not get work regularly because there are a large number of workers seeking employment, due to which they agree to work for low wages.

Your teacher may use textbooks, desks, and a whiteboard to produce education services. The income earned by owners of capital resources is interest. Land refers to physical lands, such as the acres used for a farm or the city block on which a building is constructed.

Production workers are paid for their time and effort in wages that depend on their skill and training. Labor by an uneducated and untrained worker is typically paid at low prices. Skilled and trained workers are called “human capital” and are paid higher wages because they bring more than their physical capacity to the task. Labor refers to the effort expended by an individual to bring a product or service to the market. For example, the construction worker at a hotel site is part of the labor, as is the waiter who serves guests or the receptionist who enrolls them into the hotel. (iii) Government should provide training to the villagers in different small crafts.

The modern definition of factors of production is largely based on a neoclassical economics perspective. It combines previous economic theories, such as socialism’s concept of labour as a factor of production, into a single definition. Mishrilal has purchased a mechanical crushing machine run on electricity and has set up on his field. Sugarcane crushing was earlier done with the help of bullock, but people prefer to do it by machines these days. Mishrilal also buys sugarcane from other farmers and processes it into jaggery.

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