CLASS 9^TH, ECONOMICS – THE STORY OF PALAMPUR

IMPORTANT QUESTIONS

Q.1. Define Physical Capital, Fixed Capital, Working Capital and Human Capital with examples.

Ans.

(i)    Physical capital: Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital.

(ii) Fixed capital: Tools and machines range from a plough to a tractor and sophisticated machines like generators, turbines, computers, etc. The tools, machines, buildings which can be used in production over many years are called fixed capital.

(iii) Working capital: Production requires a variety of raw materials. It requires money to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production. For example, Yarn required by a weaver, clay used by a potter.

(iv)  Human capital: One needs knowledge and enterprise to be able to put together land. labour and physical capital and produce an output; either to use it by oneself or to sell in the market. This is known as human capital, which enables better production with human skill and knowledge.

Q.2. Explain the four requirements for production of goods and services. Explain the importance of any one.

Ans. Four requirements:

(i) Land and other resources: - Land, water, forests and minerals

(ii) Labour: - i.e. people who carry out work.

(iii) Physical capital: - It includes tools, machines, buildings and working capital like raw material.

(iv) Human capital: - Population which is educated, healthy and trained. Human capital is the most important requirement.

Importance of human capital:

1)   Human capital is the most important as it can make use of other capitals.

2)   Knowledge and enterprise are used to put together land, labour and physical capital and produce an output.

Q.3. What are the merits and demerits of the Green Revolution?

Ans. Merits of the Green Revolution

1. Green Revolution introduced a number of modern farming methods in India.
2. Higher yield due to the use of HYV seeds.
3.  Machines like harvesters, tractors and threshers have made ploughing and harvesting faster and easier.
4. Higher yield enabled farmers to sell the surplus food in the market and earn more.
5. Pesticides and insecticides are able to protect the crops from pests and insects
6. A good irrigation system is able to enhance crop production.

Demerits of the Green Revolution

1. Loss of soil fertility due to increased use of chemical fertilisers.
2. Continuous use of groundwater for tubewell irrigation has reduced the water table below the ground.
3. The chemical fertilisers, easily soluble in water, can dissolve in the groundwater and pollute it.
4. They can kill bacteria and other micro-organisms helpful for the soil.
5. Excessive use of fertilisers can also make the soil alkaline and unfit for cultivation

Q.4. How do medium and large farmers obtain capital for farming? How is it different from small farmers?

Ans.

a)   Most 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. The rate of interest on such loans is very high and these farmers are in great stress to repay the loans taken.

b)   In contrast to the small farmers, medium and large farmers have their own savings from farming. They use this savings to arrange for next year's capital and make high profits by selling surplus production and earning higher amounts. Sometimes, they deposit their savings in a bank or lend their money to small farmers or save their savings or buy cattle, truck or to set up shops.

Q.5. which non-farm activities are practised in Palampur? Write a short note.

Ans. The non-farm activities of Palampur are:

a)   Dairy farming

1.  People feed their buffaloes with various kinds of grass, jowar, bajra that grows          during the rainy season.
2. The milk is sold in nearby villages.
3.  Some people have set up collection centres and chilling centres from where milk is transported to far away towns and cities.

b)   Small-scale manufacturing

1. Manufacturing in Palampur involves very simple production methods and are done on a small scale.
2.   They are carried out mostly at home.
3.  This is mostly done with the help of family labour. Labour is rarely hired.

c)   Shopkeeping

1.    Shopkeepers buy various goods from the wholesale market in the cities and sell them in the village.

2.    Small general stores in the village sell a wide range of items like rice, wheat, sugar, oil, biscuits, soap, batteries, candles, toothpaste, pens, pencils, notebooks, and even some clothes.

3.    Some families whose houses are closer to the bus stand have used a part of the space to open small shops. They sell eatables here.

d)   Transport

1.    Rickshawallahs, tongawullals, jeep, tractor, truck drivers and people driving the traditional bullock carts and bogeys are the people in transport services.

2.    They carry people and goods from one place to another and in return get paid for it.

3.    The number of people in transport services have risen over the last several years.

e)   Self-employed

        Some people have opened coaching institutes for various kinds of arts like computer         training centres or stitching classes, etc. to obtain profit from a non-farm activity             and train more and more people for better opportunities in their lives.

Q.6. Modern farming methods require more inputs which are manufactured in industry. Do you agree?

Ans.

(i)   The Green Revolution in the late 1960s introduced the Indian farmers to the cultivation of wheat and rice using High Yielding Varieties (HYVs) of seeds compared to the traditional seeds

(ii)    HYV seeds promised to produce much greater amounts of grain on a single plant. As result, the same piece of land would now produce far more quantity of food grains than that was possible earlier.

(iii)          Tubewells are set up for irrigation, and the farmers use pesticides and chemical fertilizers in farming which are produced in industries.

(iv)         Farm machinery like tractors, threshers, harvesters, which made ploughing and harvesting faster, are also being used as modern farming methods, which are also manufactured in the industries

Q.8. Explain any four efforts which can be made to increase non-farming production activities in villages.

OR

The government must develop more production activities to enhance employment opportunities in villages. Mention five such suitable activities and give reason for each.

OR

What can be done so that more non-farming production activities can be started in villages?

Ans. Efforts made to increase non-farming production activities are:

     1. Infrastructure: Increased infrastructure is the most important priority for the future.
2. Regulatory restrictions on small scale sector: Small scale sector especially in rural areas needs to be protected by capital investment restrictions so that they are not taken away by corporates.
3. Forward and backward linkages: Forward linkages of the non-farming sector serves as inputs to other sectors. In backward linkages the non-farming sector demands the outputs.
4. Quality of manpower: Education and health of the people especially in rural areas need to be looked after.

Q.9. Explain the role of infrastructure for the development of the rural economy.

Ans. Role of infrastructure in the development of economy:

    (i) Electricity provides power to run tube well and other agricultural machines.

    (ii) Education provides knowledge and technology for development of manufacturing     industries.

    (iii) Roads provide connectivity with markets.

    (iv) Banks and financial infrastructure provides loan facility.

    (v)Insurance and communication provide stability and routine functioning.

Q.10. How has electricity become the base of all economic and non-economic activities in rural areas?

Ans. Electricity has become the base of all economic and non-economic activities in                 rural areas especially for agriculture in the following manner:

            (i)   With electricity tube wells can be run to meet the demand of water.

            (ii)  Mechanical inputs like threshing machine, etc, can easily be managed.

            (iii) Apart from this, Farmers could use internet to find the best prices of their                 crop for non-farm activities.

            (iv)         This could attract many entrepreneurs to set up industries over here.

            (v)            With such combination facilities life could become easier.

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