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

Q1. Which of the following best explains why land is considered a factor of production?
(a) It only refers to soil used in farming
(b) It includes all natural resources that support production
(c) It is important only for agricultural activities
(d) It represents only geographical space

Ans: (b) It includes all natural resources that support production
The land is not just soil but all natural resources like forests, water, and minerals used in production, making it a key factor across industries.

Q2. A farmer buys a tractor to increase output. In terms of factors of production, this tractor is an example of:
(a) Land
(b) Capital
(c) Labour
(d) Entrepreneurship

Ans: (b) Capital
The capital is a durable asset, like machinery and tools, such as a tractor, that is used to enhance production.

Q3. Which of the following situations highlights the role of human capital?
(a) A fertile piece of land lying unused
(b) A machine kept in a warehouse without operators
(c) A skilled worker using knowledge to improve productivity
(d) A bank providing money for investment

Ans: (c) A skilled worker using knowledge to improve productivity
Human capital is skills and knowledge that enhance labour’s effectiveness, exemplified by a skilled worker improving productivity.

Q4. An entrepreneur sets up a new solar energy company. Which factor of production is he most directly contributing to?
(a) Land
(b) Capital
(c) Organisation and risk-taking
(d) Labour

Ans: (c) Organisation and risk-taking
Entrepreneurship is organising resources and taking risks to start a business, as seen in setting up a solar energy company.

Q5. Which of these reflects a business ignoring its responsibility towards factors of production?
(a) Ensuring fair wages for workers
(b) Polluting rivers to cut costs
(c) Training employees for new technology
(d) Using renewable energy in factories

Ans: (b) Polluting rivers to cut costs
The businesses’ responsibility to protect natural resources, noting that polluting rivers, like leather factories in Tamil Nadu, harms the environment.

Q6. Why do economists say that factors of production are interdependent? Use an example to justify your answer.
Ans: Factors of production work together, each relying on the others to create goods effectively. A mobile phone factory in India (2025’s second-largest globally) requires minerals from land for components, skilled labour for assembly, capital for advanced machinery, and entrepreneurship to innovate and manage operations. If any factor, like labour or capital, is missing, production halts, showing their interdependence, as disruptions during COVID-19 highlighted when supply chain issues stopped manufacturing.

Q7. Compare the role of physical labour and human capital in today’s knowledge-based economy. Which do you think is more important, and why?
Ans: Human capital drives innovation, surpassing physical labour in a knowledge-based economy.  

• Physical Labour: Essential for labour-intensive tasks like construction or farming, but less impactful in tech-driven industries requiring specialised skills, as seen in India’s young workforce.  
• Human Capital: Involves skills and knowledge, like engineers designing mobile phones or using SWAYAM courses, fueling innovation and efficiency in modern economies like India’s tech sector.  
• More Important: Human capital is more critical, as skills drive technological advancements, economic growth, and global competitiveness, leveraging India’s 65% youth population for a demographic dividend.

Q8. If technology replaces certain kinds of labour, does that mean workers are no longer important in production? Discuss with reasons.
Ans: Technology reduces some labour needs, but workers remain vital for production.  

• Replacement: Technologies like drones for farming or robots in surgery reduce manual labour, increasing efficiency in repetitive tasks.  
• Worker Importance: Workers provide human capital, like engineers managing robots or scientists innovating, essential for creativity, supervision, and adapting technologies to new challenges.  
• Reason: Human effort is crucial at every stage, from designing to improving products, ensuring workers remain indispensable despite automation, as seen in India’s mobile phone industry.

Q9. Analyse how entrepreneurship acts as the driving force among all factors of production. Give a real-life example to support your answer.
Ans: Entrepreneurship orchestrates resources to innovate and solve problems effectively.  

• Role: Entrepreneurs combine land, labour, and capital, take risks, and make strategic decisions, as seen in J.R.D. Tata founded Tata Airlines (now Air India) in 1932, securing resources and creating jobs.  
• Driving Force: They identify market needs, innovate products, and ensure efficient resource use, benefiting society through economic growth and job creation, as Tata did for India’s industries.  
• Example: Tata’s vision expanded steel, cars, and power, improving worker conditions and serving society, embodying entrepreneurship’s role in coordinating production factors.

Q10. Suppose a business only focuses on profit and ignores fair treatment of workers. What long-term consequences might arise?
Ans: Prioritising profits over worker welfare leads to significant long-term challenges.  

• Low Productivity: Unfair wages and poor conditions demotivate workers, reducing output and quality, and fair pay’s role in productivity.  
• High Turnover: Workers may leave, increasing hiring and training costs, disrupting production continuity, and affecting business efficiency over time.  
• Reputation Damage: Ignoring CSR harms the brand, reducing customer trust and market share, as society values businesses that respect workers and communities.

Q11. Evaluate how India’s tradition of valuing “work as worship” can shape modern attitudes towards labour and productivity.
Ans: India’s “work as worship” tradition fosters a culture of dedication and excellence.  

• Positive Attitudes: Viewing work as sacred, as in the Shilpa Shastras, encourages commitment and quality, boosting productivity in modern industries like mobile phone manufacturing.  
• Skill Development: It promotes continuous learning, like ancient artisans mastering techniques, aligning with modern needs for training via platforms like SWAYAM for India’s youth.  
• Social Impact: It fosters respect for all labour, enhancing workplace harmony and supporting India’s 65% young workforce to drive economic growth with a strong work ethic.

Q12. How does the use of natural resources in production create both opportunities and responsibilities for businesses?
Ans: Natural resources fuel production but require responsible management to avoid harm.  

• Opportunities: Resources like minerals enable industries, such as India’s mobile phone sector, to drive economic growth and job creation through efficient resource use.  
• Responsibilities: Overuse, like river pollution by Tamil Nadu’s leather factories, harms ecosystems, requiring businesses to adopt sustainable practices like wastewater recycling to protect nature and communities.  
• Balance: CSR ensures resources meet current needs without compromising future generations, promoting sustainable growth while maintaining societal and environmental well-being.

Q13. Imagine you are asked to design a factory where all four factors of production are used efficiently. What would be your plan?
Ans: An efficient factory optimises all production factors for sustainability and productivity.  

• Land: Use sustainable resources like solar energy to power operations, minimising environmental impact, as seen in modern eco-friendly production models.  
• Labour: Train workers via programs like SWAYAM to master advanced skills, ensuring high productivity and adaptability to new technologies in the factory.  
• Capital: Invest in cutting-edge machinery, like robots for precision manufacturing, to boost efficiency and reduce waste.  
• Entrepreneurship: Innovate products and streamline processes, inspired by J.R.D. Tata’s vision, to stay competitive and meet market demands effectively.

Q14. Many people argue that innovation and knowledge will be more valuable than land or machinery in the future. Do you agree? Why or why not?
Ans: Innovation and knowledge are increasingly critical, but complement land and machinery.  

• Agree: Human capital, through platforms like SWAYAM, drives technological advancements, like India’s mobile phone industry, outpacing static resources in a knowledge-based economy.  
• Reason: Knowledge fuels innovation, enabling efficient resource use and global competitiveness, while land and machinery rely on skilled application to remain relevant.  
• Counterpoint: Land and machinery are vital for physical production, like mineral extraction or factory operations, but their value depends on innovative use by skilled workers.

Q15. If you had to choose one factor of production to invest in for India’s future growth, which would you pick and why?
Ans: Human capital is the most critical investment for India’s future economic growth.  

• Choice: Human capital leverages India’s young population (65% under 35), driving innovation and productivity through education and training, as seen in the mobile phone industry.  
• Why: Skilled workers, via platforms like NCS and SWAYAM, ensure competitiveness, create jobs, and support a demographic dividend, boosting industries and living standards.  
• Impact: Investing in skills addresses literacy gaps (85% male, 70% female) and prepares India for a tech-driven future, maximising economic potential across sectors.