Factors of Production NCERT Solutions | Social Science Class 8 - New NCERT PDF Download

The Big Questions

Page No. 163

Q1: What are the factors of production?
Ans: The process of manufacturing a product or creating a service, demands certain raw materials and resources. The products are made by processing and transforming these materials into final outputs. These raw materials or resources, used in production process, are known as the factors of the production.

Q2: How are these factors interconnected?
Ans: The factors of production, Land (soil, forest, water), Labour (skilled workers), Capital (machinery, tools) and Entrepreneurship (owner, idea developer) are interconnected. If some of these elements are misplaced or used in a wrong proportion, it might hinder the production and can cause obstruction in the process. For instance, a farmer acting as an entrepreneur utilizes land, employs labours for planting and harvesting, and operates capital like tractor and irrigation system to enhance productivity. Each factor depends on the others and none of these would work in isolation.

Q3: What is the role of human capital in production, and what are its facilitators?
Ans: Human capital refers to the skill, knowledge, decisiveness, experience and health of workers or employees. The role of human capital in production includes knowledgeable and skilled workers who can enhance the quality and production of goods and services. They can use their experience to add value to the products.
The facilitators of human capital are:

• Education and training: Education provides fundamental knowledge and develop expertise in a certain field. On the other hand, training prepares workers to navigate through practical-issues.
• Healthcare: Good health supports the workers or employees to stay focused, work harder, meet the deadlines and contribute to the productivity of the process.
• Social and Cultural Influences: Society and cultural practices has a great impact on human capital. Strong values such as toil and discipline uplift workers’ performance and shape their excellence.

Let’s Explore

Page No. 165

Q1: In small groups, study the economic activities around your locality. What are the different types of goods and services being made or provided?
Here’s a small report that Latha, Asha, Mohan and Kiran made. You can make your own report for shops of your choice.

Looking at your group’s report, think about the following:
Ans: In my locality, several different types of goods and services are produced or provided. Below, I have written a report on my favourite shops and businesses:

(a) Where do people get the money that they need for their business?
Ans: People get the money that they need for their businesses from family funds, personal savings, bank loans or investors. Sometimes, individuals sell some of their properties to start a business. They often look up grants or subsidies offered by the government especially for startups.

(b) Where did the hairdresser get trained?
Ans: The hairdressers get trained in beauty institutes. They often peruse internships under an experienced hairdresser. Individuals with family business generally get hands- on experience by working alongside family members and also help the business grow.

(c) Who taught the food vendors to cook?
Ans: Food vendors usually learn to cook from family members, self-practice or by working under other experienced vendors. Many vendors these days rely on culinary classes available on the internet (platforms like YouTube B and facebook)

(d) What motivated the business owners to start their business?
Ans: The business owners often get motivated to start their businesses by the urge of being financially independent or to fulfill the livelihood and needs of their family. Personal dreams or passion to develop their ideas also motivate many to start their businesses.

Page No. 166

Q2: Revisit the table in your report. Which of the items on your list can be labelled as ‘land'?
Ans: Items that are grown, mined, or naturally produced (like milk, vegetables, metals, flowers, etc.) fall under land. As per the table in my report, wheat (for flour), eggs (from poultry), milk (for butter), pulp (used to make paper, from trees), gold, silver, gemstones (all mined natural resources), leather (from animals), rubber (natural rubber from trees) can be labeled as ‘land’ and are essential for several economic activities and fulfilling humans basic and primary needs.

Page No. 169

Q3: (a) Let’s do a small experiment. Make a list of 10 working adults in your family and neighbourhood. Ask them to describe the culture at their workplace. Share notes with your classmates. What did you discover? What are some adjectives that occur more frequently? 
Ans: (Suggestive Answer) I made a list of 10 working adults in my family and neighbourhood and asked them about the culture at their workplace. Some adult from my neighbourhood and family told me that their workplace has a supportive and cooperative environment. The management as well as the coworkers are professional, friendly and helpful. The companies they work for, offer a safe working environment for women. While others said their workplace have strict rules, are goal driven and focus more on teamwork-based work process. After sharing notes with my classmates, I found out many people work in almost similar atmosphere. Some adjectives that occur more frequently are – strict, supportive, friendly and goal-driven to describe their work place.

(b) In the Tapestry chapters, you have seen examples of the art and architecture in India across several centuries. What do you think are the factors that enabled their creators to achieve such high levels of excellence? Discuss in groups and share in class.
Ans: Yes, in the Tapestry chapters we have seen many example of the art and architecture in India across several centuries. In my perception, the artisans (creators) were highly skilled, and received proper training. They had easy access to raw materials like stones, wood, metals which helped them in their work. Their deep religious faith and rich cultural heritage inspired them to create mesmerizing art and architecture. The kings also supported these talented individuals by providing resources and lands which further encouraged their creativity and excellence.

Page No. 172

Q4: Many of the traditional techniques of production have either disappeared or are on a decline. For example, the stitching of ships saw a severe decline after the arrival of the Europeans in the Indian Ocean in the 16th century. The technique is now used only for small fishing boats.

(a) Why do you think the use of indigenous techniques has declined? Discuss in the class.
Ans: The use of indigenous techniques has declined because of the advancement in technology, modern tools and machines are more cost-efficient and are capital intensive. On the other hand, traditional methods of production demand major human capital and time to create something new.

(b) Find out some techniques and products from your region that showcase human effort and skill. Explain briefly using drawings and text in the class. 
Ans: (Suggestive Answer) In my region Khurja pottery which is known for its floral patterns, use of bright colours and glossy finish represents human efforts and skill. Along with this, handmade crafts like Madhubani paintings and Chikankari embroidery also show great human skills. These products are often made by using traditional techniques and tools passing through generations.

Page No. 173

Q5: Identify a factory in your region. Find out how much capital may have been invested in the construction of the factory (you may provide an estimate). What kinds of equipment does the factory use to create its finished products?
Ans: (Suggestive Answer) There is a cloth factory located in my region, very close to my house in Jaipur. It produces cotton and mixed fabric clothes. According to the information available on the internet, around 5-6 crore have been invested in building the factory, setting up electricity and machinery. The factory uses various machines such as spinning, weaving, dyeing, stitching, and finishing machines etc. to create the final products.

Page No. 178

Q6: (a) Can you think of some technological advancements that have impacted the lives of people and communities around you? Talk to elders at home and in the neighbourhood about it.
Ans: The technological advancement that have impacted the lives of people includes:

• Online learning platforms: Facilitates skill based courses in various fields.
• Online job searching portals: Supports individuals connect with companies both nationally and internationally.
• Unified Payments Interface(UPI): Offers cashless transactions and real-time settlements.

(b) Think of an invention that you wouId like to make to solve a problem. Write its related information on a piece of paper, such as its name, what it does, and how it works, sketches or drawings of what it would look like, and so on. Discuss with your classmates. 
Ans: (Suggestive Answer) If I get a chance to invent something that is problem solving, I would want to invent an AI cooking assistant and name it Flora. It will guide new cooks (including me), several small vendors and someone who want to setup a cloud kitchen with a voice guided assistance. It will also suggest recipes with available ingredients. It will talk to us through cooking and take pause between steps.

Think About It

Page No. 168

Q1: How do infrastructure and healthcare systems like hospitals, primary healthcare centres, doctors, pharmacies, diagnostic labs, etc., contribute to developing human capital?
Ans: The infrastructure and healthcare systems directly influence human capital. They have a great impact on productivity and well-being of society. Hospitals, primary healthcare centers, doctors, pharmacies enable basic medical care and diagnosis labs help diagnose the diseases beforehand and figure out a suitable doctor to treat them. Healthy workers are supposed to be more active, skilled and focused and fostering the human capital development, contribute to the nation’s economy even more effectively.

Page No. 170

Q2: (a) Shivay, a student at Saraswati Vidyalaya in Grade 8, had to drop out of school two years back as his father lost his job. How do you think the loss of schooling years will affect Shivay when he grows up?
Ans: Shivay’s loss of schooling, may affect his learning capacity, job chances and self confidence. His understanding of subjects might lag behind which may limit future opportunities. He might struggle more than others. His loss of schooling might reduce his social skills as school is the place where we learn to interact with others. But with strong support and hard work, he can still chase his dreams and build a bright future.. Education can be restarted anytime hope should never be lost.

(b) What problems could businesses face when they do not find workers with the required skills?
Ans: When the businesses do not find workers with required skills, they might collapse. The productivity will slow down and the quality of products might drop, resulting in declining sales.

Q3: Are some jobs more important than others? What would happen if nobody cleaned the streets, collected the trash, farmers stopped cultivating the crops, doctors were not available to treat patients, and so on?
Ans: Each and every type of jobs are important for the society and contribute equally to balance and maintain the basic functioning of the society, public safety and health scales. All type of jobs or individuals associated with these jobs provide vital services without which the communities will collapse or go through several challenges. If our community helpers like sanitation workers, doctors, police, and farmers stop providing essential services they usually do like cleaning streets, collecting trash, cultivating or treating patients, we would face poor healthcare, unsafe surroundings, food shortages, rising diseases and unsafe environment.

Page No. 175

Q4: (a) What could be the lessons for young entrepreneurs that you gather from the above case?
Ans: From the above case, young entrepreneurs can learn that business is not just about making money it’s also about helping the society. They could know that vision, hard work, and care for employees are key to long-term success.

(b) Does the existing knowledge of the entrepreneur help in finding solutions to the problem at hand? Or do they need to seek other sources? 
Ans: Yes, existing knowledge helps a lot, but entrepreneurs may also need to seek expert advice, adapt to new situations that support their creative and solution oriented ideas, and learn continuously to find the best solutions to make their businesses serve the society better.

(c) Is profit the only motivation for an entrepreneur? Why or why not?
Ans: No, profit is not the only motivation. As shown by J.R.D. Tata, helping society, improving people’s lives, and building the nation can also be strong motivations for entrepreneurs to work for the well-fare of the society and put in all their efforts to make their ideas thrive.

(d) What are the other personality traits required to be a successful entrepreneur?
Ans: A successful entrepreneur should be visionary, hardworking, honest, caring, socially responsible, and committed to improving lives and solving real problems, contributing to nation’s development.

Page No. 180

Q5: How are local communities and biodiversity affected by such activities? Do you also know some places around you that have seen water and land degradation over time? Discuss in the class.
Ans: These production activities involve various toxic metals and pollute water sources on a large scale. The use of non-ecofriendly resources impact the soil and reduce its fertility. Yes, there are many places around me which experience water and land degradation. The industrial and domestic wastewater discharge into the water sources specially in the Yamuna river cause severe water pollution. Many industries dump the waste resources in an open place that reduce the soil quality and its other features.

Questions and Activities

Page No. 182-183

Q1: How are the factors of production different from each other? What are the difficulties you faced in classifying the factors of production in the exercise given in-text?
Ans: The factors of production- Land, capital, human resources, technology and entrepreneurship are quite differ from each other and play different roles in production. Since these factors are interconnected, it is hard to understand the evolving production system without decoding their contribution. Their roles are complex and can function only when they are kept together in a required proportion.

Q2: How does human capital differ from physical capital?
Ans: Human capital is contradictory to physical capital. Human capital falls into the category of intangible resources and depicts education, training, skills, knowledge and expertise in a particular field. On the other hand, physical capital is tangible and facilitates tools, machinery, and several other equipment.

Q3: How do you think technology is changing how people develop their skills and knowledge?
Ans: The advancement in technology have increased accessibility and availability of various learning platforms. These platforms offer thousands of skills based courses both paid and free, providing updated information and study materials in various fields. These online courses and certifications enable people gain knowledge and shape or update their skills as per the changing job market demands. People can opt for workshops in various fields through these portals to get first-hand practical work and real-world-problem solving experiences.

Q4: A skill is something you learn and practice to get better. It helps you do things well, like playing a sport, creative writing, solving math problems, cooking, or even communicating well with people. If you could learn one skill today, what would it be and why?
Ans: Skill is something that enhances the qualities of an individual. If I could learn one skill today it would be coding because it is in high demand around the world and holds immense value in modern time. It requires a deeper understanding of technology and a problem solving approach. It facilitates cognitive development and will allow me explore lucrative career paths and secure a high salaried job.

Q5: Do you think entrepreneurship is the ‘driving force’ of production? Why or why not?
Ans: Yes, entrepreneurship is the ‘driving force’ of production as it requires risk taking, innovation and solution based approach. Entrepreneurs combine all the factors of production and initiate a production process of quality products and services.
They generally bring up new and pinpointing ideas to the market and bear the risks to develop and expand them. Entrepreneurship is key to drive nation’s economy and generate employment.

Q6: Can technology replace other factors like labour? Is this good or bad? Support your answer with an example.
Ans: Yes, technology can replace other factors of production like labour. The modern technologies are capital-intensive and they demand less human labour. These technologies facilitate efficient and faster production process, boosting the productivity and product quality. New technologies are usually eco-friendly and cost-efficient which affect the proportion of the finished products. India has 66% of young population and it has become very difficult for everyone to secure a job in a desired field as the new technologies fosters less labour intensive systems.

Q7: How do education and skill training affect human capital? Can they substitute for each other, or do they complement each other?
Ans: Education and skill training are two key factors of human capital. For the production of quality products and to uplift productivity, it is required for the workers to be skilled, trained and have practical experience in the field. Education and skill training complement each other and together ensure the contribution of the workers to society’s economy.

Q8: Imagine you want to start a business that produces steel water bottles. What kind of inputs are needed? How would you obtain them? Suppose one of the factors is missing; what happens to your business operations?
Ans: If I start a business that produces steel water bottles, it will require inputs such as a factory, raw materials (steel), tools, machines and human force. I will obtain the raw materials from manufacturers and suppliers. I will hire good productive workers through family, friends and employment agencies. If any of these factors go missing the productivity will slow down and might collapse.

Q9: Interview an entrepreneur or founder to understand their motivation to start a business and the opportunities and challenges they saw. You can work in pairs to create a questionnaire to collect the information and share what you have learned in a report.
Ans: I interviewed Mr. Ratnesh Desai, Founder of a Famous Textile Company in Gujarat, our conversation is as follows:

• Me: Good morning, Mr. Desai. Thank you so much for taking the time to talk with me today. May I ask, what motivated you to start your company?
• Mr. Desai: Good morning! I saw an opportunity in this field, and my enthusiasm to make and trade the best quality traditional clothes across all the states in India motivated me to start this company.
• Me: That sounds inspiring! Could you tell me about some of the challenges you faced while building your company?
• Mr. Desai: During my journey to establish a successful company, I faced crisis and several fund problems. In the beginning, I could hardly find an investor to put money in my idea.
• Me: That must have been very difficult. What did you learn from all these experiences?
• Mr. Desai: I learnt that starting a business demands resilience, patience, and a lot of hard work.
• Me: Thank you so much for sharing your journey with me. I’ve noted everything you shared and will prepare a report based on this interview. I noted everything he mentioned or shared and prepared a report once the interview was done.

Q10: Think like an economist. Let’s explore what happens when things change. If you were Ratna, what would you do in the following situations? Discuss with your classmates.
I. Suppose the rent for your space suddenly doubles.

• Will you raise the price of the food served to cover the costs?
• Will you look for a cheaper location?
• How does this affect your business?

Ans: 

• Yes, I might consider raising the food price to balance the expenses.
  
• Even after a significant price hike, if I fail to manage the rent, I will definitely look for a cheaper location.
  
• Doubling the rent will surely affect the operating cost of the business and it might affect the amount of profit as well.
  

II. Imagine one of your helpers quits suddenly.

• Can the remaining workers manage the same amount of work?
• Will you need to offer a higher salary to attract a new worker?

Ans:

• It really depends on the number of team members, their work capacity and on the amount of workload. If previous worker had more responsibilities, then the team might struggle to cope up.
• If there is a shortage of skilled worker in my team, I might have to approach someone with higher salary.

III. You receive a small loan to invest in better technology for your restaurant.

• Will this increase the production or improve quality?
• Will it help you reach more customers?

Ans:

• Getting a better and advance technology equipment can speed up the cooking and will increase the production and quality.
• Yes, it will help serving more customers through online orders and self-short- distance deliveries within less time.

IV. Suppose another restaurant opens in the neighbourhood.

• How will you attract and keep your customers?
• Will you improve your service, reduce prices, or offer something new?

Ans:

• By offering quality services, improving food menu, planning pocket friendly meal combos and by opting impactful marketing strategies.
• Yes, I will add more items to my menu and give interesting offers on combo meals.

V. What government laws or rules should be changed to improve the ease of doing business?
Ans: To improve the ease of doing business, the government should reduce paperwork, simplify tax rules, and allow faster business registrations. Getting license and paying taxes should be quick and flexible. To reduce paperwork, delays, and corruption in official procedure, the government should introduce an advanced app or website to pay taxes and apply for various businesses’ license online. This will save time and help more people start and grow their businesses easily.