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:

• Farming is the main production activity in the village.
• Over the years there have been many important changes in the way farming is practised. These have allowed the farmers to produce more crops from the same amount of land. This is an important achievement, since land is fixed and scarce.
• But it has its side effect. In raising production a great deal of pressure has been put on land and other natural resources, which is a matter of great concern.

Q2:Describe the major economic activities of the rural people.
Ans:

• Farming is the main economic activity of the rural people.
• Along with farming, people are engaged in some other economic activities like dairy, small manufacturing, transport, shop-keeping, etc.
• Besides, there are many farm labourers who work on the fields of medium and large farmers and are paid wages.

Q3: What factors have led to the reduction of water level in Palampur? :
Ans:

• Electricity came early to Palampur. Its major impact was to transform the system of irrigation. People saw that the electric run tubewells could irrigate much larger areas of land more effectively. So, farmers began setting up tubewells for irrigation. This reduced the water table below the ground.
• Area under irrigation increased continuously in Palampur which badly affected the water table.
• With introduction of the Green Revolution in the late 1960s, farmers in Palampur started to use HYV seeds which needed plenty of water. This also had a major role in the reduction of water level in the village.

Q4: How was farming done till the mid-1960s?

Ans:

• Till the mid-1960s, farmers used traditional method of farming.
• The seeds that they used in cultivation were traditional ones with relatively low yields.
• Traditional seeds needed less irrigation.
• Farmers used cow-dung and other natural manure as fertilisers.
• All these were readily available with the farmers who did not have to buy them.

Q5: What are the items that come under physical capital?

Ans:
Physical capital is the third requirement for production of goods and services.
The following items come under this:

• Tools, Machines, buildings: Tools and machines range from very simple tools such as a farmer’s plough to sophisticated machines such as generators, turbines, computers, etc.
• 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. Also, some money is always required during production to make payments and buy other necessary items.

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 Pradesh were the first to try out the modern farming method in India.
• The farmers in these regions set up tubewells for irrigation, and made use of HYV seeds, chemical fertilisers and pesticides in farming. Some of the farmers bought farm machinery like tractor and threshers, which made ploughing and harvesting faster. In this way, they got high yields of wheat.

Q7: “Transport is a fast developing sector in Palampur”. Support the statement.
Ans:

• There are a variety of vehicles on the road connecting Palampur to Raiganj. Rickshawallahs, tongawallahs, jeep, tractors, truck drivers and people driving the traditional bullock-cart and bogey are people in the transport service.
• They ferry people and goods from one place to another, and in return get paid for it.
• The number of people involved in transport has grown over the last several years.

Q8: Why is it always the medium and large farmers who supply wheat and other farm products to the markets?
Ans: Small farmers have little surplus wheat because their total production is small and from this a substantial share is kept for their own family needs. On the other hand, medium and large farmers have enough surplus wheat. They retain a part of it for the family’s consumption and sell the surplus . wheat at the market to make earning for fulfilling other needs.

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 method of farming:

• Farmers use cow-dung and other natural manure as fertilisers. These are readily available with the farmers who do not have to buy them.
• Traditional seeds, need less irrigation. So farmers do not have to make arrangements for setting up tubewells.
• Unlike traditional seeds, HYV seeds promise to produce much greater amounts of grain on a single plant. As a result, the same piece of land produces far larger quantities of food grains that was not possible earlier—by using 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: By using HYV seeds, farmers can produce much greater amounts of grain on a single plant. As a result, the same piece of land now produces far larger quantities of food grains than was earlier. The use of HYV seeds has contributed a lot in improving the farmers condition.
• Demerits: HYV seeds, however, need plenty of water and also chemical fertilisers and pesticides to produce best results. Too much use of chemical fertilisers leaves adverse effect on the soil fertility. Continuous use of groundwater for tubewell irrigation has reduced the water-table below the ground.

Q15: How is land distributed between the farmers of 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.

Q16: What problems do farm labourers face in terms of employment?
Ans:

• 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:

• 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.

Q18: Give a brief description of the non-farm production activities in Palampur.
Ans:

• Dairy is a common activity in many families in our region.
• Some people are engaged in manufacturing which involves very simple production methods and are done on a small scale. They are carried out mostly at home or in the fields with the help of
• family labour.
• Some people are engaged in trade also. The traders of our region are shopkeepers who buy various goods from wholesale markets in the cities and sell them in the villages.
• Transport has become a fast developing sector in our region. People engaged in this sector ferry people and goods from one place to another, and in return get paid for it.
• There is also a computer class centre in our region providing employment to young men and women who have completed a diploma in computer application.

Q19: How are farm labourers different from farmers?
Ans:
Farm labourers are different from farmers in the following ways:

• Farm labourers come either from landless families or families cultivating small plots of land. Unlike farmers, farm labourers do not have a right over the crops grown on the land. Instead they are paid wage by the farmer for their work.
• Sometimes labourers get meal also. Wages vary widely from region to region, from crop to crop and from one farm activity to another.
• Farmers have decreased, farm labourers have increased, this shows a black picture of Indian agriculture.
• Farmers enjoy a little but better position than the farm labourers because unlike farm workers they have their own land.
• Farmers have always a scope of earning more because they work hard on their land. But farm labourers are suffered a lot as they are not paid fairly. They are usually exploited by the employers or farmers.

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.