Class 9 Economics Chapter 1 Question Answers - Economics

Q1: Which is the main production activity in the village? Mention one important change in way farming is practised? What is its side effect?
Ans: Farmingis the primary production activity in the village. Key points include:

• Approximately 75% of the population relies on farming for their livelihood.
• Recent changes in farming practices have enabled farmers to produce more crops on the same land.
• This increase in production is significant due to the fixed and limited nature of land.

However, these advancements have led to:

• Increased pressure on land and natural resources.
• Concerns about sustainability and environmental impact.

Q2:Describe the major economic activities of the rural people.
Ans: Farmingis the primary economic activity for rural people. Key activities include:

• Farming - The main source of livelihood.
• Dairy - Many families engage in dairy farming.
• Small manufacturing - Local production of goods.
• Transport - Providing transport services.
• Shop-keeping - Running small shops.

Additionally, many farm labourers work on larger farms for wages.

Q3: What factors have led to the reduction of water level in Palampur? :
Ans: The reduction of water levels in Palampur can be attributed to several key factors:

• The introduction of electricity transformed irrigation methods. Farmers began using electric tubewells, which allowed for the irrigation of larger areas.
• This shift led to a significant increase in the area under irrigation, which negatively impacted the water table.
• With the onset of the Green Revolution in the late 1960s, farmers adopted High-Yielding Variety (HYV) seeds that required more water, further contributing to the decline in water levels.

Q4: How was farming done till the mid-1960s?
Ans: Till the mid-1960s, farming relied on traditional methods. Key features included:

• Seeds: Farmers used traditional seeds that yielded less.
• Irrigation: These seeds required less water.
• Fertilisers: Natural manure, such as cow-dung, was commonly used.
• Accessibility: Farmers had easy access to these resources, eliminating the need for purchases.

Q5: What are the items that come under physical capital?
Ans: Physical capital is essential for the production of goods and services. It includes:

• Tools, machines, and buildings: These range from simple items like a farmer's plough to advanced machines such as generators and computers. They are used over many years and are known as fixed capital.
• Raw materials and cash: Production requires various raw materials, like yarn for weavers and clay for potters. Additionally, some cash is needed to make payments and purchase necessary items, referred to as working capital.

Q6: Farmers of which states were the first to try out the modern farming method in India? How did they do it?
Ans: Farmers of Punjab, Haryana, and Western Uttar Pradeshwere the first to adopt modern farming methods in India. They implemented several key practices:

• Established tubewells for efficient irrigation.
• Utilised high-yielding variety (HYV) seeds, along with chemical fertilisers and pesticides.
• Invested in farm machinery such as tractors and threshers to speed up ploughing and harvesting.

These advancements led to significantly higher yields of wheat, transforming agricultural productivity in these regions.

Q7: “Transport is a fast developing sector in Palampur”. Support the statement.
Ans: Transport in Palampur is rapidly evolving, with various vehicles connecting the village to Raiganj. 
Key points include:

• Types of vehicles: The roads are busy with rickshaws, tongas, jeeps, tractors, trucks, and traditional bullock carts.
• Transport services: These vehicles are used to transport both people and goods, providing essential services.
• Growth in numbers: The number of individuals involved in transport has significantly increased over recent years.

Q8: Why is it always the medium and large farmers who supply wheat and other farm products to the markets?
Ans: Small farmers often have limited surplus wheat because:

• Their overall production is small.
• A significant portion is reserved for family needs.

In contrast, medium and large farmers typically have:

• A sufficient surplus of wheat.
• They keep some for their own consumption and sell the rest at the market.

This allows them to earn money for other necessities.

Q9: What do the large farmers do with their earnings?
Ans:

• Large farmers have enough surplus farm products which they sell at the market and earn good money. They use this money for lending to small farmers, who are in need of loan.
• They also sometimes use the savings to arrange for the working capital for farming in the next season. They can increase the number of tractors which would increase their fixed capital.
• Some of these farmers might also use the savings to buy cattle, trucks, or to set up shops. These constitute the capital for non-farm activities.

Q10: Mention two characteristics of traditional method of farming. How are the HYV seeds different from the traditional ones?
Ans: Two characteristics of traditional farming methods:

• Farmers use cow-dung and other natural manures as fertilisers, which are easily accessible and do not require purchase.
• Traditional seeds require less irrigation, so farmers do not need to invest in tubewells.

Differences between HYV seeds and traditional seeds:

• HYV seeds produce significantly higher yields, allowing the same land to generate much more food compared to traditional seeds.

Q11: Give a brief assessment of the shopkeepers of Palampur.
Ans:

• The shopkeepers of Palampur buy various goods from wholesale markets in the cities and sell them in the village.
• There are several small general stores in the village selling a wide range of items like rice, wheat, sugar, tea, oil, biscuit, soap, toothpaste, etc.
• A few of the families whose houses are close to the bus stand have used a part of the space to open small shops. They sell eatables.

Q12: Explain the term physical capital. Mention its different types with examples.
Ans: A variety of inputs are required at every stage during production. This is called physical capital.
Physical capital is of two types:

• Fixed capital: It is relatively durable and can be used repeatedly in he production of goods, for example, machinery, tools, building, etc.
• Working capital: Raw material and money in hand are called working capital. Unlike machinery and tools, these are used up in production. For example, the yarn used by the weaver and the clay used by the potter.

Q13: How do farmers of Palampur practise multiple cropping?
Ans:

• All land is cultivated in Palampur. No land is left idle. During the rainy season farmers grow jowar and bajra. These plants are used as cattle feed.
• It is followed by cultivation of potato between October and December. In winter season, fields are sown with wheat.
• A part of land/area is also devoted to sugar cane which is harvested once every year.

Q14: What are the merits and demerits of HYV seeds?
Ans:

• Merits:
  • HYV seeds allow farmers to produce significantly more grain from each plant.
  • The same land can yield much larger quantities of food grains than before.
  • These seeds have greatly improved the economic condition of farmers.

• Demerits:

  • HYV seeds require a lot of water and chemical fertilisers.
  • Excessive use of chemical fertilisers can harm soil fertility.
  • Over-reliance on groundwater for irrigation has led to a drop in the water table.

Q15: How is land distributed between the farmers of Palampur?
Ans: The distribution of cultivated land in Palampur is notably unequal. Key points include:

• Approximately one-third of the 450 families in Palampur are landless, amounting to about 150 families, primarily dalits, who have no land for farming.
• Among the families that do own land, 240 families cultivate small plots of less than 2 hectares. These small plots often do not generate enough income for the families.
• In contrast, 60 families are classified as medium or large farmers, cultivating more than 2 hectares each. Some of these large farmers have land exceeding 10 hectares.
• This pattern of land distribution is reflective of a broader trend in India, where about 80% of farmers are small, cultivating only 36% of the total cultivated area. Conversely, 20% of large farmers manage to cultivate 64% of the land.

This illustrates a significant inequality in land distribution both in Palampur and across India.

Q16: What problems do farm labourers face in terms of employment?
Ans: Farm labourers often face numerous challenges regarding their employment:

• Farm labourers come either from landless families or families cultivating small plots of land. They work on the fields of large farmers for livelihood. They do not have a right over the crops grown on the land.
• Farm labourers usually work on daily wages which are lower than the minimum wages fixed by the government. There is heavy competition for work among them, so they agree to work for lower wages.
• There is also a wide variation in the duration of employment. A farm labourer might be employed on a daily basis or one particular farm activity like harvesting, or for the whole year.
• Large farmers are now increasingly using various farm machinery on their land. This has adversely affected the job opportunities of the farm labourers.

Q17: Describe what various types of crops are grown in Palampur.
Ans: In Palampur, all available land is actively cultivated, with no idle fields. The main types of crops grown include:

• Jowar and Bajra during the rainy season, primarily used as cattle feed.
• Potato is cultivated between October and December.
• Wheat is sown in the winter season.
• A portion of land is also dedicated to Sugarcane, harvested annually.

The farmers in Palampur benefit from a well-developed irrigation system, allowing them to grow multiple crops each year.

Q18: Give a brief description of the non-farm production activities in Palampur.
Ans: Non-farm production activities in Palampur include various activities that supplement the primary agricultural work. 
Here are some key activities:

• Dairy: Many families engage in dairy farming. They feed their buffalos with grass and crops like jowar and bajra, which are grown during the rainy season. The milk produced is sold in nearby villages, particularly Raiganj.
• Manufacturing: Small-scale manufacturing is common, often conducted at home or in fields using simple methods. Family members typically provide the necessary labour.
• Trade: Local shopkeepers buy goods from wholesale markets in cities and sell them in the villages, contributing to the local economy.
• Transport: The transport sector is rapidly growing, with individuals providing services to ferry people and goods. They earn money for their services, enhancing connectivity in the region.
• Education: A computer training centre offers employment opportunities for young men and women who have completed diplomas in computer applications, helping to improve their skills and job prospects.

Q19: How are farm labourers different from farmers?
Ans: Farm labourers differ from farmers in several key ways:

• Background: Farm labourers typically come from landless families or those with small plots of land. Unlike farmers, they do not own the crops grown on the land.
• Payment: They receive wages for their work, which can vary significantly based on region, crop type, and specific farm tasks. Sometimes, they also receive meals as part of their compensation.
• Employment Trends: The number of farmers has decreased, while the number of farm labourers has increased, indicating challenges in Indian agriculture.
• Position: Farmers generally hold a better position than labourers because they own land, giving them more control over their livelihoods.
• Earnings: Farmers have the potential to earn more due to their ownership of land and the ability to cultivate it. In contrast, farm labourers often face exploitation and are not paid fairly for their work.

Q20: Explain the distribution of land among the farmers in Palampur.
Ans:

• Yes, the distribution of cultivated land is highly unequal in Palampur. About one-third of the 450 families are landless there. These 150 families are mostly dalits who have no land for cultivation.
• Of the remaining families who own land, 240 families cultivate small plots of land less than 2 hectares in size. Cultivation of such plots does’t bring adequate income to the farmer family. On the other hand, 60 medium and large farmers cultivate more than 2 hectares of land. A few of the large farmers have land extending over 10 hectares or more. This shows that medium and large farmers have more land though their number is very small.
• A similar situation can be found in India also. About 80% farmers are small who cultivate only 36% of the cultivated areas whereas 20% of the large farmers cultivate 64% of the cultivated area. This shows that there is inequality in the distribution of cultivated area in village Palampur as well as in India.

Q21: How do chemical fertilisers adversely affect the soul, groundwater, lakes and rivers? What were the effects of use of chemical fertilisers in the state of Punjab?
Ans:

• Chemical fertilisers 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 groundwater, rivers and lakes.
• Chemical fertilisers can also kill bacteria and other micro-organisms in the soil. This means some time after the use, the soil will be less fertile than ever before.
• The consumption of chemical fertilisers in Punjab is highest in the country. The continuous use of chemical fertilisers has led to degradation of soil health.
• In order to maintain the same production level, the farmers in Punjab use more and more chemical fertilisers and other inputs. This has not only lowered the quality of the crops but also the quality of the soil.
• Using more and more chemical fertilisers and other inputs means cost of cultivation is very high which is difficult for the small farmers to carry on.

Q22: Describe how Palampur is a well-developed village.
Ans:

• Palampur is a well-developed village, where farming is the main activity but several other activities such as small scale manufacturing, dairy, transport, etc—are also carried out on a limited scale.
• The village is well-connected with neighbouring villages and towns. Raiganj, a big village, is very close to Palampur. An all-weather road connects the village to Raiganj and further on to the nearest small town of Shahpur. Many kinds of transport are available on this road.
• Palampur has about 450 families. So upper caste families own the majority of land in the village.
• Their houses are made of brick with cement plastering.
• Most of the houses in the village have electric connections. Electricity powers all the tubewells in the fields and is used in various types of small business.
• Palampur has two primary health centre run by the government and one private dispensary where the sick are treated. Thus, Palampur has fairly well-developed system of roads, transport, electricity, irrigation, schools and health centre.

Q23: What are the factors of production? Describe them in brief.
Ans:
The aim of production is to produce the goods and services that we want. There are four requirements for production of goods and services:
(i) Land: No production activity can take place without land. It is the basic requirement. Other natural resources such as water, forests, minerals are also equally important.
(ii) Labour: Labour means people who will do the work. Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do manual work. Each worker is providing the labour necessary for production.
(iii) Physical Capital: Physical capital means the variety of inputs required at every stage during production. Tools, machines, buildings can be used in production over many years and are called fixed capital. Raw material and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in production.
(iv) Human Capital: It is the fourth but the most important requirement for production of goods and services. We need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output either to use ourselves or to sell in the market.

Q24: State any five reasons as to why farm labourers are considered poor.
Ans:

• Both Dala and Ramkali are poor farm labourers who work on daily wages in Palampur. This means they must regularly look for work. Although the minimum wages for a farm labourer set by the government is 115 (April, 2011) per day, Dala and Ramkali get only 80. Also there is heavy competition for work among the farm labourers in Palampur, So they agree to work for lower wages.
• Dala and Ramkali are under the burden of past debt which force them to work for lower wages.They also have to look after a large family, which is a measure cause of their poverty.
• Mostly people migrate to big cities like Delhi, Punjab, Haryana, etc., in search of employment or better job opportunities. People also migrate for higher education. The migrants from Gosaipur and
• Majauli who went to cities will probably find work as casual labourers, industrial workers, rickshaw pullers or headload workers.