Chapter 1 The Story of Village Palampur -
1. Which one among the following is not a fundamental requirement for
production?
(A) Land
(B) Labour
(C) Knowledge
(D) Public health
Ans. (D) Public health
2. Physical capital is of two types:
(A) Fixed capital, Working capital
(B) Farming capital, Human capital
(C) Fixed capital, Human capital
(D) All of the above
Ans. (A) Fixed capital, Working capital
3. Assertion (A): Farming is the main activity in Palampur.
Reason (R): Activities other than farming like small-scale manufacturing,
dairy, transport, etc. are carried out on a limited scale which proves farming to
be a main activity in Palampur.
(A) Both A and R is individually true and R is the correct explanation of A
(B) Both A and R is individually true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true
Ans. (A) Both A and R are true and R is the correct explanation of A.
4. What is the basic constraint in raising farm production?
(A) Equipment (B) Machinery
(C) Land being fixed (D) Poverty
Ans. (C) Land being fixed
5. Chemical fertilizers lead to –
(A) Ground water pollution
(B) Soil degradation
(C) Rise in cost of cultivation
(D) All of the above
Ans. (D) All of the above
6. Give a few examples of fixed capital.
Sol. Tools, machines, and buildings.
7. Who provides capital to the small farmers at a high rate of interest?
Sol. Large farmers, village money lenders or traders.
8. What are the constituents of modern farming methods?
Sol. The constituents of modern farming methods are the use of high high-
yielding variety of seeds, using chemical fertilizers and pesticides, as well as
using plenty of water for irrigation.
9. Mention one difference between land and capital.
Sol. Land is a natural resource whereas capital is a man-made factor of
production.
10. What is multiple cropping?
Sol. Multiple cropping means growing more than one crop on the same land
in a year.
11. Scientific reports indicate that the modern farming methods have
overused the land. Explain by giving examples.
Sol. The soil is losing fertility due to the increased use of chemical fertilizers;
The continuous use of groundwater from tube well irrigation has reduced the
water table.
12. What is meant by physical capital? Give example. What are the items
coming under it?
Sol. Physical capital includes the variety of inputs required at every stage
during production such as:
(a) Tools, Machine, and Buildings: Tools and machines range from very
simple tools such
As a farmer's plough to sophisticated machines such as generators, turbines,
computers, etc.
(b) 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 the potter. Money
is also needed to make payments and buy necessary items.
13. Which farmers out of landless farmers, small farmers or medium and
large farmers, hire labour to work in the fields?
Sol. Landless farmers are hired as labourers are hired. Small farmers do not
need additional labour, as they work with their family members in the fields.
Only the medium and large farmers have extensive work, which makes them
hire additional labour.
14. What do you understand by the Green Revolution?
Sol. Green Revolution was started in the late 1960s in the field of agriculture.
Under this revolution, modern methods of farming were adopted to increase
agricultural productivity.
15. What is meant by “Human capital”?
Sol. The knowledge and enterprise to be able to put together all other
resources and produce an output either to use you or to sell, is called human
capital.
16. Modern farming methods require farmers to start with more cash
than before. Why?
Sol. Modern farming methods include machinery, HYV seeds, chemical
fertilizers, insecticides and pesticides to increase production. All these inputs
are manufactured in industries. These are to be hired and purchased from the
market. For purchasing these inputs from the market farmers need more cash
than before.
17. What are the harmful effects of the Green Revolution?
Sol. The harmful effects of the Green Revolution are:
(i) The Green Revolutions are responsible for the loss of soil fertility due to the
increased use of chemical fertilizers.
(ii) The chemical fertilizers provide minerals that dissolve in water and are
immediately
available to plants. But, these may not be retained in the soil for long.
18. Discuss small-scale manufacturing, a non-farming activity in village
Palampur, in detail.
Sol. (i) Less than fifty people are engaged in manufacturing in Palampur.
(ii) Unlike the manufacturing that takes place in the big factories in the towns
and cities, manufacturing in Palampur involves very simple production
methods and are done on a small scale.
(iii) They are carried out mostly at home or in the fields with the help of family
labour. Rarely are labourers hired.
19. Explain the problems which arise due to unequal distribution of land.
Sol. (i) Economic Inequality: Unequal distribution of land leads to economic
inequality.
(ii) Unemployment: It leads to unemployment.
(iii) Poverty and Hunger: Lack of economic opportunities leads to poverty and
hunger.
20. How do large farmers utilise surplus farm products to arrange for the
capital needed for farming?
Sol. (i) The large farmers generally sell the surplus farm products and have
good earnings.
(ii) They put most of their earnings or money in their bank accounts and get
adequate interest on the same.
(iii) A part of their earnings is saved and kept to arrange for the working capital
for farming in the next season.
(iv) They also use savings for lending to small farmers and other persons in
the village.
(v) A part of their earnings is used to increase their fixed capital like tractor,
thresher, cattle etc