Class 9 Economics Chapter 1 Question Answers - Economics

Q.1. Why it is necessary to increase the area under cultivation? Explain.
Ans.
(a) Farming: main activity: In Palampur, farming is the main activity as 75% of population earn their living through farming. Unfortunately, not all people engaged in farming have sufficient land for cultivation. So it is necessary to increase area under cultivation.
Fig: Farming

(b) Use of modern farming methods: Use of HYV seeds, improved methods of irrigation, pesticides, insecticides and chemical fertilisers and new harvesting techniques require larger farming land area of cultivation. In small area, they are not successful and the costs involved is also high.

(c) Land area under cultivation is fixed in Palampur: Since 1960, in Palampur, there has been no expansion in land area. So some of the wastelands in the village had been converted to cultivable land. More alternatives are required of such type.

Q.2. What is the main source of capital for medium and large farmers? How is it different from the small farmers? Explain.
Ans.
(a) Surplus wheat selling: Main source of capital for medium and large farmers is supply of surplus wheat in market as they own large area of cultivable land. They retain part of wheat for their own use and sell rest of wheat in market. While for small farmers, no surplus wheat is available so they arrange capital from large farmers or village money lenders for the traders.
(b) Extra work to landowner or large farmers: In order to get loan from land owner or large farmers they have to pay higher interest rates and also extra work on their fields to repay the loan, while medium and large farmers can devote their full time to their own land.

Q.3. Why modern farming methods require more inputs which are manufactured in industry? Explain.
Ans.
(a) A modern farming method requires higher investment: Use of HYV seeds, pesticides, insecticides, electric tubewells etc. require more initial investment as all are costly affairs.
(b) HYV seeds require more water, chemical fertilizer: HYV seeds would give higher yield only in combination of HYV seeds, irrigation, chemical fertilisers, pesticides etc.
Fig: HYV seeds(c) More electricity consumption: Use of electric tubewells, mechanical harvesters require more electricity for their operation to produce better results.

Q.4. 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 35 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.

Q.5. What was the basic aim of the ‘Green Revolution’ in India? How did it affect the market economy?
Ans. The introduction of HYV seeds and the increased use of fertilisers and irrigation are known collectively as the Green Revolution which was associated with increase in production of food grains in India and make India self-sufficient in foodgrains.
Fig: green revolution in India Impact of Green Revolution on market economy
(a) Increased production of foodgrains like wheat and rice: Foodgrain yields continued to increase throughout the 1980s. In financial year 1980, almost 75 percent of the total cropped area under wheat was sown with HYV seeds.
(b) Increased income disparities, higher income growth and reduced incidence of poverty: Green revolution has increased income disparities, higher income growth and reduced incidence of poverty.

Q.6. 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. Land area under cultivation is fixed. So, the ways of increasing farm produce on the same piece of land are:
(a) Multiple cropping: It is the most common way of increasing production on a given piece of land. Under it, more than one crop is grown on the same piece of land during the year. Indian farmers should grow at least two main crops in a year. Some farmers have been growing a third crop also over the past twenty years.
(b) Green Revolution: It was brought in India in the late 1960s, the use of HYV (High Yielding Variety) seeds for increase in production of rice and wheat. It promised to produce much greater amount of grains on a single plant.
(c) Use of modern technology: By the use of well developed able to cultivate their land with greater efficiency. Farmers use pumps for irrigation, threshers for threshing, harvesters for harvesting, tractors for Ploughing etc.
(d) Use of chemical fertilizers and pesticides: Use of chemical fertilizer and pesticides improves fertility of soil and reduces pest respectively for the particular period of production. This improves the quantity of production.

Q.7. 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) Government has set up minimum wages for farm labourers to be Rs 60 per day but unfortunately they do not get this much and are mostly exploited.
(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.

Q.8. 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 requirements of production of goods and services. These requirements are known as factors of production.
These are:
(a) Land: By land we mean not only the level surface but all gifts of nature which are amenable to human control, such as water, forest, minerals etc.
(b) Labour: Manpower required to do the work. The mental and physical work done by people in an organisation comes under labour.
Fig: Labour

(c) Physical Capital: It means a variety of inputs required at every stage during production.
They can be classified as:
(i) Fixed capital: It includes tools, machines and building that can be used for production for many years.
(ii) Working capital: Money in land and raw material that has to be used in current products are included in working capital.
(d) Enterprise: It means need of knowledge and enterprise to put together all other factors of production and ability to sell the produce in the market. This is also called human capital.

Q.9. 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.

Q.10. Explain any two positive and two negative effects of Green Revolution. [2010 (T-1)]

OR

Explain two achievements and two drawbacks of Green Revolution in Indian agriculture.
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.

Q.11. What are the difficulties faced by small farmers in arranging capital in comparison with medium and large farmers. [2010 (T-1)]
Ans. Modern farming methods require a great deal of capital, so the small farmers face more difficulties in arranging capital in comparison with medium and large farmers. Most of the small farmers have to borrow money from for large farmers or the village money lenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. This put the small farmers in great distress to repay the loans.
Unlike small farmers, medium and large farmers have their own savings from farming. They sale their good amount of surplus and earn more income. This incomes they utilise in arranging capital for next season of production.

Q.12. 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. This can be made clear from the following arguments:
(a) Multiple cropping: Farmers of Palampur have adapted multiple cropping. They plant  three crops on a year and never leave their land idle.
Fig: Multiple cropping

(b) Modern facilities of agriculture: They have a well developed system of irrigation. Electricity came early in Palampur. They use modern machinery like tractors, harvesters etc for farming. Use of HYV seeds and chemical fertilisers is also noticed in Palampur.
(c) Markets and Education: There are small markets setup in Palampur which have all the daily needs commodities available. Kareem is also running computer classes and a good number of students are learning there. High schools and education for women is available here.
(d) Transportation: People of Palampur have facilities of transporting goods to other towns and village with a good transportation system and well developed roads.

Q.13. What are the various ways through which farmers can get loan? Write their advantages and disadvantages. [2010 (T-1)]
Ans. Farmers can get loans through the following ways:
(a) Large farmers or village money lenders: Most of the small farmers prefer taking loans from large farmers or village money lenders.
Advantages of taking loans from such sources are:
(i) They are flexible in terms and conditions of repayment and rate of interest.
(ii) They know the lenders personally so get loans without collateral security.
Disadvantages:
(i) Rate of interest is very high.
(ii) Small farmers are exploited and are trapped in vicious circle of poverty.
(b) Banks and coperative society: Although, very few number of small farmers approach banks for loan but they provide them better services.
Advantages of loans from banks and cooperatives:
(i) No exploitation of farmers.
(ii) Uniform and nominal rate of interest for all.
Disadvantages:
(i) Needs proper security and have set terms and conditions.

Q.14. 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.

Q.15. Explain four efforts that can be made to increase non-farming production activities in villages? [2010 (T-1)]
Ans. Non-farming production activities should be increased in the village. Unlike farming, non-farm activities required very less land and capital.
(i) Loans can be made available to villagers on low rates of interest so that people with less savings can set up non-farm activities.
(ii) Markets should be made available to sell the goods produced in non-farm activities.
(iii) Development of goods transport, communication system and proper storage of goods should be established to increase the opportunities for non-farm activities in the village.

Q.16. Explain any four non-farming activities in Palampur village. [2010 (T-1)]
Ans. Most of the people living in palampur village are involved in production activities. Only 25% of the people working in Palampur village are engaged in activities other than agriculture.
Various non-farm activities in Palampur village are:
(a) Dairy: It is a common activity at Palampur village. People feed their buffaloes on jowar and bajra and sold their milk in Raiganj village. Two traders from Shahpur town have set up collection cum chilling centres at Raiganj from where the milk is transported to far away towns and cities.
Fig: Dairy

(b) Small scale manufacturing units: People get involved in very simple production methods in their homes only with their family members. They make baskets, pottery etc small things and sell them in the markets nearby.
(i) Shopkeepers: People get involved in trade, they buy goods from nearby whole sale markets and sell them in the village. They sell wide range of items like sugar, tea, oil, soap etc. They open shops for eatables near bus stands.
(ii) Transport: People also get involved in providing transportation services like rickshaws, tongas, jeeps, tractors, trucks, bullock cart, bagay etc. The number of people involved in transport has grown over the last several years.

Q.17. 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 is a revolution which started in the late 1960s with an aim of achieving self-sufficiency in the production of grains like wheat and rice. The initial impact of Green Revolution was limited to wheat and only to a few regions because initially only the farmers of Punjab, Haryana nad Uttar Pradesh by out the modern farming method in India. They used tubewells for irrigation and made use of HYV seeds, chemical fertilisers and pesticides in farming. Capital required for using HYV seeds was very high. Therefore small farmers and many backward regions could not use the modern techniques. Results and markets for wheat were better therefore, HYV seeds were utilised more for growing wheat initially. Use of HYV seeds require all other modern techniques of cultivation also therefore for initial time it remained unapproachable in many backward villages and small farmers which work without electricity or own poor farm distribution.

Q.18. What is land? Suggest any three ways to sustain land. [2010 (T-1)]
Ans. Land is the levelled surface and other natural resources such as water, forest, minerals etc used for production of goods and services.
Fig: LandExcessive use of chemical fertilizer or modern techniques of farming destroys land and all other natural 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.

Q.19. Explain any three types of production activities in Palampur.
Ans.
(a) Farming at Palampur: Farming is the main activity in village Palampur. Land area available for farming is fixed. Expansion in production is done due to methods of multiple cropping and use of modern farming methods.
(b) Dairy farming: Dairy is a common activity in many families of Palampur. Many families have cows and buffalos. They feed them on jowar nad bajra. They sell milk either in the village or in nearby villages or town.
(c) Small-scale manufacturing: People at Palampur are engaged in some kind of small scale and cottage industries. Simple techniques of production are used on a small scale. Such small scale units are mostly carried at home or in fields with the help of family members. Sugarcane crushing, carpet weaving and basket–making activities are carried under such production units.

Q.20. State any three advantages of multiple cropping.
Ans. Advantages of multiple cropping are:
(a) Efficient use of land: Land is not left idle at any time of the year and therefore more efficiently used in the process of production.
(b) Increase of production: It increases the production on a piece of land during the year.
(c) Increase in income: Multiple cropping increases the agricultural income of the country as well as for the farmers.

Fig: Multiple Cropping