Factors of Production Notes for Class 8 Social Science
Factors of Production
02 Marks Questions
Question: What are the factors of production?
Answer:
Factors of production are the resources used to produce goods and services. For example, land, labour, capital, and entrepreneurship, etc., are the factors of production.
Question: Why is the land considered a factor of production?
Answer:
The land is considered a factor of production because it is used for cultivation, construction of buildings and roads, and extraction of minerals and other resources.
Question: Define labour as a factor of production.
Answer:
Labour means any physical or mental effort used to produce goods or services.
Question: What is human capital?
Answer:
Human capital means the knowledge, skills or techniques used for the production of goods and services.
Question: What do you mean by adult literacy rate?
Answer:
Adult literacy means the percentage of people above the age of 15 who can read and write with understanding a short sentence about their daily life.
Question: What is an entrepreneur?
Answer:
When a person starts a new business, combines all the factors of production, and take risk to earn more profit is known as an entrepreneur.
Question: What is entrepreneurship?
Entrepreneurship is a process of designing, launching, and running a new business by taking risks or creating something new to solve a problem.
Question: What is capital in Economics?
Answer:
Here, capital means money, buildings, tools, equipment, machines, etc., which are used for the production of goods and services.
3 marks Questions and answers
Question: How does education help to develop human capital?
Answer:
The quality of human beings is enhanced through proper education. If the people are not educated, they are not as capable to do the efficient production work as compared to the educated or skilled person. Through proper education, it is possible to enhance the skills of the people.
Question: Technology is playing a crucial role in production.' - Explain.
Answer:
The technology is very significant for any production. It helps to get more production with small inputs and give efficient and quality product. The technology reduces human effort or muscle power and gives relaxation to people.
Question: Explain any THREE factors of production.
Answer:
There are four factors of production: land, labour, capital, and entrepreneurship.
- Land - It comes under factors of production, because it is used for getting water, minerals, soils, etc.
- Labour - Physical or mental labour of the people comes under this category.
- Capital - money, tools, machines, etc. comes under this capital, which are very important for production.
Question: How are the factors of production interdependent?
Answer:
All the factors of production are dependent on each other. Land, labour, capital, and entrepreneurship are all connected with each other.
- Land provides resources for production.
- Labour provides efforts to increase production efficiently using natural resources, which are provided by the land.
- Labour uses its physical or human capital to produce. For example, they are using skills, tools, and machines for getting production.
- Taking all other factors into consideration, entrepreneurship takes risks, adds new ideas to enhance production, to solve new problems.
Therefore, all these factors are connected with each other and make the process of production successful.