Class 9 Economics Chapter 1 Extra Question Answers - The Story of Palampur

Q.51. What does 'yield' mean?
Ans. Yield refers to the amount of crop produced on a specific piece of land during one growing season.

Q.52. How did Green Revolution benefit the Indian farmer?
Ans. The Green Revolution in the late 1960s significantly benefited Indian farmers by introducing high yielding variety (HYV) seeds. Key advantages include:

• Increased Production: HYV seeds allowed farmers to grow much larger quantities of grain from the same piece of land.
• Higher Surplus: Farmers could sell more surplus produce in the market, improving their income.
• Modern Techniques: The revolution encouraged the use of irrigation, chemical fertilizers, and pesticides, which enhanced crop yields.

However, these methods also required more water and resources, leading to concerns about sustainability.

Q.53. How were higher yields of wheat and rice possible?
Ans. Higher yields of wheat and rice were achieved through several key factors:

• High Yielding Variety (HYV) seeds: These seeds produce more grain per plant.
• Irrigation: Reliable water supply is essential for crop growth.
• Chemical fertilisers: These enhance soil nutrients, promoting better growth.
• Pesticides: Used to protect crops from pests and diseases.

Farmers in regions like Punjab and Haryana were early adopters of these methods, leading to significant increases in wheat production.

Q.54. How is land resource affected by modem farming methods?
Ans. Land is a natural resource that must be used carefully. Modern farming methods have led to significant overuse of this resource.

• Scientific reports indicate that these methods can degrade the natural resource base.
• The Green Revolution has often resulted in a loss of soil fertility due to excessive use of chemical fertilisers.
• Continuous extraction of groundwater for irrigation has caused a decline in the water table.
• Environmental resources like soil and groundwater take years to build up, and once damaged, they are hard to restore.
• It is crucial to protect the environment to ensure sustainable agricultural development.

Q.55. How do chemical fertilizers affect the soil?
Ans. Chemical fertilizers supply minerals that dissolve in water and are quickly accessible to plants. However, these nutrients:

• Are not retained in the soil for long periods.
• Can leach away, leading to pollution of groundwater, rivers, and lakes.
• May harm beneficial bacteria and microorganisms in the soil.

As a result, the soil may become less fertile over time.

Q.56. Who are the farm laborers working for medium and large farmers?
Ans. Farm laborers come either from landless families or families cultivating small plots of land. Unlike farmers, farm laborers do not have a right over the crops grown on the land, they are paid wages by the farmer.

Q.57. How do farm laborers get wages in Palampur?
Ans. Wages can be in cash or kind (crop). Sometimes laborers get meals also. Wages vary widely from crop to crop, from one farm activity to another.

Q.58. How small farmers manage the capital needed for farming?
Ans. Small farmers have to borrow money to arrange for the capital.

Q.59. From where small farmers borrow money?
Ans. Small farmers either 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 which makes it difficult for them to repay.

Q.60. How do medium and large farmers manage capital?
Ans. The medium and large farmers manage their capital effectively through the following methods:

• They utilise their own savings from farming.
• This allows them to arrange the necessary capital for future farming seasons.
• By selling surplus produce, they generate additional income.
• Some may also invest in non-farm activities to diversify their income sources.

Q.61. What is the basic difference between two factors of production-land and capital?
Ans. Land is a natural resource, while capital is man-made. Here are the key differences:

• Land is fixed in supply; it cannot be increased.
• Capital can be increased through investment and savings.
• Proper management of land is essential for sustainable production.

Q.62. What do large and medium farmers do with their surplus farm products?
Ans. Large and medium farmers typically manage their surplus farm products in the following ways:

• They sell the surplus products to generate income.
• A portion of the earnings is saved for future investments.
• These savings may be used to purchase capital for the next farming season.
• Some farmers invest in cattle, trucks, or even set up shops.

This approach helps them build their capital for both farming and non-farming activities.

Q.63. Name the non-farm activities of Palampur?
Ans. Non-farm activities in Palampur include:

• Dairy farming
• Small-scale manufacturing
• Trade and shopkeeping
• Providing transport services

Q.64. How is dairy farming practiced in Palampur?
Ans. Dairy farming is a common practice among many families in Palampur. Here are some key points about how it is conducted:

• Families primarily feed their buffalos with various grasses and crops like jowar and bajra, especially during the rainy season.
• The milk produced is sold in Raiganj, a nearby village.
• Traders from Shahpur have established collection and chilling centres in Raiganj.
• From these centres, the milk is transported to distant towns and cities.

Q.65. What kind of manufacturing units are set up in Palampur?
Ans. In Palampur, manufacturing is characterised by:

• Simple production methods that are easy to understand.
• Small-scale operations, often conducted at home or in fields.
• Reliance on family labour, with minimal hiring of external workers.

Q.66. What kinds of shops are set up in Palampur?
Ans. There are small general stores selling items like rice, wheat, sugar, tea, oil, biscuits, soaps, toothpaste, batteries, candles, notebooks, pens, pencils and even some clothes. There are shops for eatables too. 

Q.67. Which means of transport are used by people of Palampur? 
Ans. There are rickshawallahs, tongawallahs, jeeps, tractors, trucks, bullock carts and bogeys to transport goods and people to nearby village and towns of Palampur.      

Q.68. Name the main and other activities of the village of Palampur.
Ans. Farming is the main activity in Palampur. Other activities are small -scale manufacturing, dairy, transport, etc. They also have small shops selling a wide range of items like rice, wheat, sugar, tea, oil, biscuits, soaps, etc.

Q.69. What all facilities are available in the village?
Ans. In Palampur, the following facilities are available:

• Electricity: Most houses have electric connections, which power tubewells for irrigation and support small businesses.
• Education: The village has two primary schools and one high school.
• Healthcare: There is a government-run primary health centre and a private dispensary for medical treatment.
• Transport: A well-developed system of roads connects Palampur to nearby towns, facilitating transport.

Q.70. What are the main factors for production of goods and services?
Ans. The main factors for the production of goods and services are:

• Land: This includes natural resources such as water, forests, and minerals.
• Labour: The workforce needed for production, which can vary from educated individuals to manual workers.
• Physical Capital: This refers to the tools, machinery, and buildings used in production, divided into fixed capital (long-term assets) and working capital (raw materials and cash).
• Knowledge and Entrepreneurship: The ability to combine land, labour, and capital effectively to produce goods or services.

Q.71. State the various ways of growing more crop from the same land by the people of Palampur.
Ans. To grow more than one crop on a piece of land during the year:
(i) Modern farming methods like HYV seeds, pesticides, chemical fertilizers, etc. were used.
(ii) Green Revolution in the late 1960s introduced to the farmers, the cultivation of wheat and rice by using high yielding variety seeds.

Q.72. What is the 'multiple cropping' system?
Ans. Multiple cropping is a farming practice that involves growing more than one crop on the same piece of land within a year. This method is widely used to:

• Increase overall production from the land.
• Maximise the use of available resources.
• Enhance the farmers' income.

In Palampur, for example, farmers typically grow at least two main crops each year, often adding potatoes as a third crop.

Q.73. State the main reasons why farmers are able to grow three different crops in a year in Palampur.
Ans. The main reasons farmers in Palampur can grow three different crops each year are:

• Well-developed irrigation system: This allows for efficient water supply to crops.
• Early electricity access: This transformed irrigation methods, replacing traditional Persian wheels.
• Electric-run tubewells: These can irrigate larger areas more effectively than older methods.

By the mid-1970s, the entire cultivated area of 200 hectares was irrigated, enabling multiple cropping.

Q.74. What do you understand by the term 'Green Revolution'?
Ans. The Green Revolution began in India in the late 1960s, transforming agriculture. Key points include:

• Farmers adopted High Yielding Variety (HYV) seeds for crops like wheat and rice.
• These seeds produced significantly higher yields compared to traditional seeds.
• To achieve optimal results, farmers required ample water, chemical fertilizers, and pesticides.
• While it increased food production, it also led to concerns about environmental sustainability.

Q.75. What are the harmful effects of chemical fertilizers?
Ans. Chemical fertilizers are designed to provide essential minerals that dissolve in water, making them readily available to plants. However, they can have several harmful effects:

• Pollution: They may leach from the soil, contaminating groundwater, rivers, and lakes.
• Soil Health: These fertilizers can kill beneficial bacteria and microorganisms in the soil, leading to reduced fertility.
• Long-term Effects: Continuous use can degrade soil health, making it less fertile over time.

Ultimately, reliance on chemical fertilizers can harm the environment and agricultural sustainability.

Q.76. How did the spread of electricity help farmers in Palampur?
Ans. Electricity has significantly benefited farmers in Palampur in the following ways:

• Tubewells powered by electricity have enhanced irrigation, leading to increased crop yields.
• Higher yields result in more income for farmers, allowing for further investments.
• Farmers have established shops, sugarcane machines, and small-scale industries to generate additional income.

Q.77. Is it important to increase the area under irrigation and why?
Ans. Increasing the area under irrigation is crucial for several reasons:

• It leads to higher crop yields, helping to meet the food demands of the growing population.
• Increased production can enhance farmers' income, providing them with better financial stability.
• More irrigation creates additional employment opportunities in farming and related sectors.
• Supplementary income allows farmers to invest in non-farm activities, diversifying their sources of revenue.

Q.78. Why are the wages for farm laborers in Palampur less than the minimum wages?
Ans. The wages for farm labourers in Palampur are lower than the minimum wages due to several factors:

• High competition for jobs: There are many labourers and not enough work, leading to lower wages.
• Land ownership: Most land is owned by landlords who prefer to pay the least possible wages to maximise their profits.
• Illiteracy: Many farmers are unaware of the minimum wage laws set by the government.

Q.79. Describe the work of a farmer with 1 hectare of land or small holding.
Ans. The farmer managing a smallholding of 1 hectare of land typically operates with minimal resources. Key aspects of their work include:

• Utilising traditional seeds and relying on animals for ploughing.
• Employing less labour and avoiding machines.
• Minimising the use of chemical fertilisers and manure.
• Conducting manual irrigation and receiving assistance from family members during harvesting.
• Consuming the majority of the produce within the family.

Q.80. 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 lower rate of interest?
Ans. Tejpal Singh, a large farmer, provided Savita with a loan at an interest rate of 24 per cent for four months, which is considered very high. In addition to the loan, Savita agreed to work on his field as a farm labourer during the harvest season for Rs. 35 per day, a low wage. If Savita had been able to secure a loan from a bank at a lower interest rate, her situation would have been different. A bank loan would typically come with a lower interest rate and without the requirement to work under harsh conditions.

Q.81. What can be done by the government to start more non-farm activities in the villages to improve the farmers' conditions?
Ans.
(i) The government should provide capital to the villagers for starting new business like shops, dairy farming, transport, etc.
(ii) Banks should be set up in the villages to provide loans to the farmers at low interest rates.
(iii) People should be made literate so that they are qualified to start a new business like computer training courses in computer centers.

Q.82. Differentiate between physical and human capital.
Ans. 
(i) Physical capital is the variety of inputs required at every stage during production whereas labor, which works on the physical capital, is called human capital.
(ii) Tools and machines, buildings etc. can be used in production over many years whereas human capital can produce the output only if they have experience to do a particular work.
(iii) Tools, machines, generators etc. are the examples of physical capital and human capital can belong to any profession like a farmer, a farm laborer, a factory worker etc.

Q.83. Explain the types of activities necessary for production.
Ans. Types of activities necessary for production:

• Farming: This is the primary activity for producing and selling crops.
• Non-farm activities: These include small-scale manufacturing, transport, shopkeeping, and dairy farming, which support other production needs in the village.
• Cattle-rearing: Some individuals engage in cattle-rearing to provide milk, generating additional income for their families.

Q.84. What means of transportation are used in the village of Palampur?
Ans. In the village of Palampur, various modes of transport are utilised:

• Bullock carts and tongas for local transport.
• Rickshaws for short-distance travel.
• Motor vehicles such as motorcycles, jeeps, tractors, and trucks.

These vehicles are essential for:

• Transporting people and goods.
• Carrying jaggery and other products to nearby farms and markets.
• Moving surplus crops to neighbouring villages for sale.

Q.85. What kind of people live in the village Palampur?
Ans. This village has about 450 families belonging to several different castes. The 80 upper caste families own the majority of land in the village. Their houses, some of them quite large, are made of brick with cement plastering. The SCs (dalits) comprise one-third of the population and live in one corner of the village and in much smaller homes, some of which are of mud and straw.

Q.86. What are the ill-effects of Green Revolution?
Ans. The Green Revolution has led to several negative impacts on agriculture:

• Soil Fertility Loss: Increased use of chemical fertilisers has degraded soil quality.
• Water Table Depletion: Continuous extraction of groundwater for irrigation has lowered the water table.
• Environmental Damage: Resources like soil and groundwater take years to develop; once lost, they are hard to restore.

It is crucial to manage these resources carefully to ensure sustainable agricultural development.

Q.87. Describe the condition of landless farmer like Dala, of Palampur village. 
Ans. Dala is a landless farm labourer in Palampur who works for daily wages. His situation is challenging because:

• He must constantly search for work.
• The government sets the minimum wage for farm labourers at Rs. 300 per day, but Dala only earns Rs. 160.
• There is intense competition among labourers for jobs, leading many to accept lower wages.
• Dala and his fellow labourers, like Ramkali, are among the poorest in the village.

Finding work is increasingly difficult, especially as large farmers hire fewer labourers.

Q.88. How surplus farm products are sold by the farmers? 
Ans. Let us assume that farmers have produced wheat on their land. They retain a part of the wheat for the family consumption and sell the surplus wheat. Small farmers like Savita have little surplus wheat because their total production is small and from this a substantial share is kept for their own family needs. The medium and large farmers supply wheat to the market which the traders buy and sell it further to shopkeepers in the towns and cities. 

Q.89. 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, labor 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.