Class 9 Economics Chapter 1 Question Answers - Economics

Q1. Why is it necessary to increase the area under cultivation? Explain.

Fig:Farming

Ans: Farming in Palampur

• Farming is vital: In Palampur, 75% of the population relies on farming for their livelihood.
• Land scarcity: Not everyone involved in farming has enough land, making it essential to increase the area under cultivation.
• Modern farming methods: Techniques such as using high-yield variety (HYV) seeds, improved irrigation, and chemical inputs require sufficient inputs and well-managed land to be effective.
• Fixed land area: Since 1960, the land available for cultivation in Palampur has not expanded. Some wastelands have been converted to farmland, but more alternatives are needed.

Q2. What is the main source of capital for medium and large farmers? How is it different from the small farmers? Explain.

Ans: Main source of capital for medium and large farmers:

• Medium and large farmers primarily generate capital by selling surplus wheat from their larger plots of land.
• They keep some wheat for personal use and sell the remainder in the market.

In contrast, small farmers face the following challenges:

• Small farmers often lack surplus wheat due to their smaller landholdings.
• They typically borrow money from large farmers or village moneylenders to fund their farming activities.
• The interest rates on these loans are usually very high, leading to financial strain.

Loan repayment conditions:

• Small farmers may have to perform extra work for large farmers to repay loans.
• In contrast, medium and large farmers can focus entirely on their own land.

Q3. Why do modern farming methods require more inputs which are manufactured in industry? Explain.

Ans: Modern farming methods require more inputs which are manufactured in industry for several reasons:

• Higher Investment: Modern techniques involve significant initial costs, such as purchasing high-yielding variety (HYV) seeds, pesticides, and electric tubewells.
• Increased Resource Needs: HYV seeds demand more water and chemical fertilisers to achieve their potential yield.
• Electricity consumption: The use of electric tubewells and mechanical harvesters leads to higher electricity usage for optimal production.

Fig: HYV seeds

Q4. What were the main terms on which Savita got a loan from Tejpal Singh? How can Savita be benefitted if she gets a loan from the bank?

Ans: Savita arranged money for capital from a big farmer – Tejpal Singh, who belongs to the same village.
Main terms decided to get loan of Rs 3000.
(a) Interest rate of 24%.
(b) Loan given for the period of 4 months.
(c) Extra work to be done by Savita on Tejpal Singh’s field.
(d) Tejpal Singh would give her Rs 100 per day as wages.
These conditions were very tough for a small farmer like Savita but these had to be agreed upon. If she could arrange money from cooperative society or bank she could repay the loan in easy installment on reasonable interest rate of 16–18% and no need to put extra working hours on others land.

Q5. What was the basic aim of the ‘Green Revolution’ in India? How did it affect the market economy?

Fig: green revolution in India

Ans: The Green Revolution aimed to boost food production in India by introducing high-yielding varieties (HYVs) of seeds, along with increased use of fertilisers and irrigation. This initiative sought to make India self-sufficient in food grains.

Its impact on the market economy included:

• Increased food production: The yields of crops like wheat and rice rose significantly, with 75% of wheat sown with HYV seeds by 1980.
• Income growth: The Green Revolution contributed to higher income levels for farmers.
• Income disparities: While some farmers prospered, the gap between rich and poor widened.
• Poverty reduction: Overall, there was a decrease in poverty levels due to increased agricultural productivity.

Q6. What are the different ways of increasing production on the same piece of land? Explain any four points. [2010 (T-1)]

OR

What are the different ways of increasing production on the same piece of land. Explain with the help of examples.

OR

State four steps of optimal utilisation of land.

Ans: The area of land available for farming is fixed, but there are several ways to increase production on the same piece of land:

• Multiple cropping: This involves growing more than one crop on the same land within a year. Farmers in India often cultivate at least two main crops annually, with some even growing a third crop.
• Green Revolution: Introduced in India during the late 1960s, this movement promoted the use of High Yielding Variety (HYV) seeds, which significantly increased the production of rice and wheat.
• Modern technology: The use of advanced machinery, such as tractors, pumps for irrigation, and harvesters, allows farmers to cultivate their land more efficiently.
• Chemical fertilisers and pesticides: These substances enhance soil fertility and control pests, leading to improved crop yields during the production period.

Q7. Who provides labour for farming in Palampur? How are they paid for their work? [2010 (T-1)]

Ans: After land, labour is the second most necessary factor for production. Small farmers along with the other numbers of their family cultivate their own fields. Thus, they provide the labour required for farming themselves. Medium and large scale farmers hire farm labourers to work on their fields. Farm labourers either engaged from landless families or the families cultivating small piece of land.
Farm labourers do not have any right over the crops grown on the land.
They are paid in the following ways:
(i) Wages are paid to them in form of cash or kind, i.e., crops.
(ii) The government has set a minimum wage of Rs 300 per day, but many labourers earn less, often around Rs 160.

(iii) Sometimes poor farm labourers work for meal also.
(iv) Sometimes they are employed on daily basis and sometimes for the whole year. Thus, durations of their employment is not fixed.

Q8. What are the four requirements for production of goods and services? Explain. [2010 (T-1)]

OR

What are the four requirements of production? Explain with examples.

Ans: There are four key requirements for the production of goods and services, known as the factors of production. These include:

• Land: This refers to all natural resources, including water, forests, and minerals, that can be controlled by humans.
• Labour: The workforce needed to perform tasks, encompassing both mental and physical efforts by individuals within an organisation.
• Physical Capital: This consists of various inputs required at different production stages, which can be further classified into:
  • Fixed Capital: Tools, machines, and buildings that can be used for many years.
  • Working Capital: Money and raw materials needed for current production activities.
• Enterprise (Human Capital): The knowledge and skills necessary to combine the other factors of production effectively and to sell the final products in the market. This is often referred to as human capital.

Fig: Labour

Q9. What is Green Revolution? Explain some of its features. [2010 (T-1)]

Ans: Green Revolution is a revolution with farmers using modern methods for higher yields and achieving self sufficiency in the production of wheat and rice. It includes use of High Yielding Variety (HYV) seeds, irrigation, chemical fertilizers, pesticides etc for producing best results. Farmers of Punjab, Haryana and Western Uttar Pradesh were the first to try it in the late 1960s.
Factors responsible for Green Revolution are:
(a) Increase in yield: HYV seeds promised to produce much greater amounts of grains on a single plant. As a result, the same piece of land produce for larger quantities of food grains.
(b) Use of modern technology: Use of modern technology like tractors, harvesters, tubewells etc have made the implementation of green revolution possible in the environment.
(c) Use of chemical fertilisers and pesticides: Unlike traditional fertilizer and manures, use of chemical fertilizer has increased as a requirement with HYV seeds which improves the quality and quantity of the produce.

Q10. Explain any two positive and two negative effects of Green Revolution. [2010 (T-1)]

Ans: Green Revolution was started in the late 1960s with an aim of achieving self sufficiency in the production of grains like wheat and rice.
Two Positive effects and achievements of green revolution are:
(a) Increase in productivity of grains: Use of HYV seeds produced much more amount of wheat and rice in comparison to traditional seeds.
(b) Modernisation of agriculture: HYV seeds require well-developed irrigation, use of chemical fertilisers and pesticides. Use of farm machinery has also encouraged in the green revolution which resulted in development and modernization of agriculture. It also increased the surplus in the field of agriculture.
Two Negative effects and drawbacks of Green Revolution:
(a) Decline in fertility of soil: Too much use of chemical fertilizer resulted in decline of fertility of soil. Farmers have to use more and more chemical fertilizer which increases the lost of production.
(b) Level of groundwater: Use of groundwater for cultivation with the help of tub wells have caused decline in level of ground water.

Q11. What are the difficulties faced by small farmers in arranging capital in comparison with medium and large farmers. [2010 (T-1)]

Ans: Small farmers face significant challenges in arranging capital compared to medium and large farmers:

• Modern farming methods require substantial capital.
• Small farmers often need to borrow money from larger farmers, village moneylenders, or traders.
• The interest rates on these loans are typically very high, causing distress in repayment.
• In contrast, medium and large farmers have their own savings from farming.
• They can sell surplus produce, generating more income to reinvest in their farms.
• Small farmers, who make up about 80% of farmers in India, struggle to obtain capital due to limited production and lack of surplus.
• Many small farmers also work as labourers to support their families. This further complicates their financial situation.

Q12. Is Palampur a developed village? Explain by presenting four arguments. [2010 (T-1)]

OR

How can you say that Palampur is a well developed village?

Ans: Palampur is a well-developed village, evident from the following points:

• Multiple cropping: Farmers in Palampur practise multiple cropping, planting three crops each year without leaving their land idle.
• Modern agricultural facilities: The village has an advanced irrigation system, early access to electricity, and uses modern machinery such as tractors and harvesters. Additionally, high-yield variety seeds and chemical fertilisers are commonly used.
• Markets and education: Palampur features small markets that provide essential goods. There are also computer classes run by Kareem, and education is available for both boys and girls, including high schools.
• Transportation: The village boasts a robust transportation system, enabling residents to transport goods efficiently to nearby towns and villages.

Fig: Multiple cropping

Q13. What are the various ways through which farmers can get loan? Write their advantages and disadvantages. [2010 (T-1)]

Ans: Farmers can obtain loans through various means:

Large farmers or village money lenders:

Advantages:

• Flexible terms and conditions for repayment.
• Personal relationships allow loans without collateral.
  

Disadvantages:

• High interest rates.
• Small farmers may face exploitation and fall into a cycle of poverty.

Banks and cooperative societies:

Advantages:

• No exploitation of farmers.
• Uniform and nominal interest rates.
  

Disadvantages:

• Require proper security and have strict terms.

Q14. Differentiate between fixed capital and working capital. State any four points. [2010 (T-1)]

Ans: Both fixed capital and working capital are the parts of physical capital required for production.
(a) Fixed Capital:
(i) It includes fixed factors of production which are used for years.
(ii) Tools and machines range from very simple tools such as a farmer's plough to sophisticated machines such as generators, turbines etc.
(iii) It includes tools, machines, buildings etc.
(iv) They remain constant for many years of production and increased or decreased only when needed.
(b) Working Capital:
(i) It includes variable factors of production which are needed to be arranged every time at the time of production.
(ii) Whatever money and raw material required for production are included in it.
(iii) It is required to be arranged according to the desired production.
(iv) They are dynamic depending upon the profits and income of last season.

Q15. Explain four efforts that can be made to increase non-farming production activities in villages? [2010 (T-1)]

Ans: To enhance non-farming production activities in villages, several efforts can be made:

• Low-interest loans: Provide loans to villagers at low rates, enabling those with limited savings to start non-farm activities.
• Market access: Establish markets where villagers can sell their non-farm products, increasing their income opportunities.
• Transport and communication: Improve transport and communication systems, facilitating better access to markets and resources.
• Storage facilities: Develop safe and efficient storage options for agricultural and non-agricultural goods, ensuring that products can be stored safely until sold.

Q16. Explain any four non-farming activities in Palampur village. [2010 (T-1)]

Ans: In Palampur village, only 25% of the working population engages in non-farming activities. Here are four key non-farming activities:

• Dairy: Many families in Palampur participate in dairy farming. They feed their buffaloes with jowar and bajra and sell the milk in nearby Raiganj village. Traders from Shahpur town have established collection and chilling centres in Raiganj, facilitating the transport of milk to distant towns and cities.
• Small Scale Manufacturing: Some residents operate small manufacturing units at home, producing items like baskets and pottery. These goods are sold in local markets.
• Shopkeeping: Local shopkeepers purchase goods from wholesale markets and sell a variety of items, including sugar, tea, oil, and soap. Many open shops near bus stands to cater to travellers.
• Transport Services: The transport sector has seen growth, with individuals providing services such as rickshaws, tongas, jeeps, tractors, and bullock carts. This has become a significant source of income for many families.

Fig: Dairy

Q17. What do you mean by Green Revolution? Why was the initial impact of Green Revolution limited to wheat and only to a few regions? [2010 (T-1)]

Ans: Green Revolution refers to a significant agricultural transformation that began in the late 1960s, aimed at achieving self-sufficiency in grain production, particularly wheat and rice.

The initial impact of the Green Revolution was limited to wheat and specific regions for several reasons:

• Adoption was primarily seen in Punjab, Haryana, and Uttar Pradesh, where farmers embraced modern farming techniques.
• Farmers used tubewells for irrigation and employed high-yielding variety (HYV) seeds, along with chemical fertilisers and pesticides.
• The high cost of HYV seeds made them inaccessible to small farmers and those in less developed areas.
• Better results and market opportunities for wheat led to a focus on this crop, limiting the use of HYV seeds for other grains initially.
• Modern farming methods required a combination of resources, which many small farmers lacked, especially in regions without reliable electricity or infrastructure.

Q18. What is land? Suggest any three ways to sustain land. [2010 (T-1)]

Fig: Land

Ans: Land refers to the flat surface and various natural resources, such as water, forests, and minerals, that are essential for producing goods and services. However, excessive use of chemical fertilisers and modern farming techniques can harm the land and its resources.

Land can be sustained through following ways:
(a) Limited use of chemical fertilizer: Chemical fertilizer should be used in a limited number and only as the per the requirement. Excessive use of chemical fertilizer destroys the fertility of land.
(b) Crop rotation: Crops should be planted in such a way that land gets time of restore its fertility. Different nutrients are required with different lands, therefore planning of multiple cropping should be done in such a way that the land is also able to restore the lost nutrients.
(c) Waste of chemical fertilizer: Waste of chemical fertilizer or pesticides should not be thrown in the water bodies of village as this will pollute the water.
(d) Adequate use of ground water: Ground water should be adequately used so that there is minimum wastage of ground water.

Q19. Explain any three types of production activities in Palampur.

Ans: Farming in Palampur:

• Farming is the primary activity in Palampur, with a fixed land area available for cultivation.
• Farmers use methods like multiple cropping and modern techniques to increase production.

Dairy Farming:

• Dairy farming is common among many families in Palampur.
• Families often keep cows and buffalos, feeding them on jowar and bajra.
• Milk is sold in the village and nearby towns.

Small-Scale Manufacturing:

• Many residents engage in small-scale and cottage industries.
• Production techniques are simple and often done at home or in fields with family help.
• Common activities include sugarcane crushing, carpet weaving, and basket making.

Q20. State any three advantages of multiple cropping.

Ans: Advantages of multiple cropping:

• Efficient use of land: Land remains productive throughout the year, maximising its use.
• Increased production: More crops can be harvested from the same land annually.
• Higher income: Farmers and the country benefit from increased agricultural earnings.