Worksheet – Chapter 7
Factors of Production
Section A: Multiple Choice Questions (MCQs)
Factors of production are:
a) Finished products
b) Inputs used to produce goods and services
c) Government rules
d) Transport systems
Which factor includes natural resources?
a) Labour
b) Capital
c) Land
d) Entrepreneurship
Human effort used in production is called:
a) Capital
b) Labour
c) Technology
d) Land
Machines and tools are examples of:
a) Labour
b) Entrepreneurship
c) Capital
d) Land
The person who organizes all factors of production is:
a) Labourer
b) Teacher
c) Entrepreneur
d) Farmer
Which of these is an example of technology?
a) Forest
b) Tractor
c) Soil
d) River
Which type of production uses more machines?
a) Labour-intensive
b) Capital-intensive
c) Traditional production
d) Manual production
Human capital is improved by:
a) Pollution
b) Education and training
c) Deforestation
d) Overuse of resources
UPI is an example of:
a) Land
b) Capital
c) Technology
d) Labour
During COVID-19 many industries faced problems due to:
a) Supply chain disruptions
b) More workers
c) Increased farming
d) Better transport
Section B: Fill in the Blanks
- Inputs used to produce goods are called ______ of production.
- Soil, forests, and water are included under ______.
- Human effort in production is called ______.
- Machines and buildings are examples of ______.
- The person who takes risks in business is called ______.
- ______ helps improve skills and knowledge.
- The ability to produce more in less time is called ______.
- A network of people and resources involved in production is called a ______ chain.
- ______ means continuous improvement in Japan.
- Proper food and diet are known as ______.
Section C: Match the Following
Column A Column B
1. Land a. Human effort
2. Labour b. Machines and tools
3. Capital c. Natural resources
4. Entrepreneurship d. Takes risks
5. Technology e. Improves efficiency
Section D: True or False
- Labour refers to human effort in production. ______
- Capital includes natural resources. ______
- Entrepreneurship involves taking risks. ______
- Technology makes production slower. ______
- Education improves human capital. ______
- Machines can completely replace all human labour. ______
- Supply chain includes people and resources. ______
- Human capital and physical capital are the same. ______
- Productivity means ability to do more work in less time. ______
- Factors of production are interdependent. ______
Section E: Assertion–Reason
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true but R is not the correct explanation of A
c) A is true but R is false
d) A is false but R is true
Assertion (A): Education improves human capital.
Reason (R): Education provides knowledge and skills.
Assertion (A): Technology helps increase productivity.
Reason (R): Technology reduces effort and saves time.
Assertion (A): Capital refers to natural resources.
Reason (R): Capital includes machines and tools.
Assertion (A): Entrepreneurship organizes production factors.
Reason (R): Entrepreneurs make decisions and take risks.
Assertion (A): Supply chain problems can affect production.
Reason (R): Production depends on connected resources and activities.
Section F: Very Short Answer Questions
- What are factors of production?
- Name the four main factors of production.
- Define labour.
- What is human capital?
- Give one example of capital.
- What is entrepreneurship?
- Define technology.
- What is productivity?
- What is a supply chain?
- Name any one factor that improves human capital.
Section G: Short Answer Questions
- Explain the importance of factors of production.
- Differentiate between human capital and physical capital.
- Explain any four facilitators of human capital.
- What is the role of technology in production?
- Differentiate between labour-intensive and capital-intensive production.
- Explain the responsibilities towards labour.
- How are all factors of production interconnected?
Section H: Long Answer Questions
- Explain the main factors of production with examples.
- Explain the role and importance of technology in production.
- Describe the responsibilities towards factors of production.
- Explain how education and training improve human capital.
- Discuss how technology can be both beneficial and harmful.
Section I: Case Study Based Questions
Case Study – 1: Human Capital and Education
Education and skill training play an important role in developing human capital. Education gives knowledge and improves understanding, while skill training provides practical abilities for specific jobs. Healthy and educated people can work better and increase productivity. Technology also helps people learn through online classes and digital tools.
Questions:
- What is human capital?
- Name two ways to improve human capital.
- How does education help people?
- What is the role of skill training?
- How does technology help learning?
Case Study – 2: Technology in Daily Life
Technology has changed production and daily life. UPI helps people make online payments quickly. GPS helps in finding routes, while emails provide faster communication. Technology improves speed, quality, and efficiency in work. However, older technologies like wheelbarrows and pulleys are still useful.
Questions:
- Give one example of technology.
- How does technology improve production?
- What does GPS help us do?
- Name one old technology still in use.
- Mention one benefit of technology.
Case Study – 3: Starting a Business
Ravi wants to start a steel water bottle business. He needs land for a factory, labour for operating machines, capital to buy tools and raw materials, and technology for manufacturing. He also needs an entrepreneur to manage the business and take decisions. If any factor is missing, production may stop.
Questions:
- Name two factors of production needed by Ravi.
- What is the role of labour?
- What is the role of entrepreneur?
- What happens if capital is missing?
- Why are all factors important?
Answer Key
Section A: Multiple Choice Questions (MCQs)
- b) Inputs used to produce goods and services
- c) Land
- b) Labour
- c) Capital
- c) Entrepreneur
- b) Tractor
- b) Capital-intensive
- b) Education and training
- c) Technology
- a) Supply chain disruptions
Section B: Fill in the Blanks
- Factors
- Land
- Labour
- Capital
- Entrepreneur
- Education
- Productivity
- Supply
- Kaizen
- Nutrition
Section C: Match the Following
Answers:- 1 → c, 2 → a, 3 → b, 4 → d, 5 → e
Section D: True or False
- Labour refers to human effort in production. → True
- Capital includes natural resources. → False
- Entrepreneurship involves taking risks. → True
- Technology makes production slower. → False
- Education improves human capital. → True
- Machines can completely replace all human labour. → False
- Supply chain includes people and resources. → True
- Human capital and physical capital are the same. → False
- Productivity means ability to do more work in less time. → True
- Factors of production are interdependent. → True
Section E: Assertion–Reason
Answer: a) Both A and R are true and R is the correct explanation of A.
Answer: a) Both A and R are true and R is the correct explanation of A.
Answer: d) A is false but R is true.
Answer: a) Both A and R are true and R is the correct explanation of A.
Answer: a) Both A and R are true and R is the correct explanation of A.
Section F: Very Short Answer Questions
What are factors of production?
Factors of production are inputs used to produce goods and services.
Name the four main factors of production.
Land, Labour, Capital, and Entrepreneurship.
Define labour.
Labour refers to human effort used in production.
What is human capital?
Human capital means skills, knowledge, education, and abilities of people.
Give one example of capital.
Machine / Factory / Tool
What is entrepreneurship?
Entrepreneurship is organizing and managing resources while taking risks.
Define technology.
Technology is the use of scientific knowledge in practical work.
What is productivity?
Productivity is the ability to produce more in a given time.
What is a supply chain?
A supply chain is a network of people, resources, and activities involved in production.
Name any one factor that improves human capital.
Education / Health / Training / Nutrition
Section G: Short Answer Questions
1. Explain the importance of factors of production.
Help in production of goods and services
Create employment opportunities
Improve standard of living
Support economic development
2. Differentiate between human capital and physical capital.
Human Capital: Skills, knowledge, and abilities of people.
Physical Capital: Machines, tools, buildings, and equipment used in production.
3. Explain any four facilitators of human capital.
Education: Provides knowledge and skills
Health: Increases work efficiency
Training: Develops practical abilities
Nutrition: Supports physical and mental growth
4. What is the role of technology in production?
Technology increases speed, improves product quality, reduces effort, and saves time and cost.
5. Differentiate between labour-intensive and capital-intensive production.
Labour-intensive: Uses more human effort (example: handicrafts).
Capital-intensive: Uses more machines and technology (example: industries).
6. Explain the responsibilities towards labour.
Provide fair wages
Ensure safe working conditions
Respect workers' rights
Avoid child labour
7. How are all factors of production interconnected?
All factors work together in production. If one factor is missing or not used properly, production may slow down or stop.
Section H: Long Answer Questions
1. Explain the main factors of production with examples.
The four main factors are:
Land: Natural resources like soil, water, forests
Labour: Human effort like workers and teachers
Capital: Machines, tools, factories
Entrepreneurship: Organizing and managing production
2. Explain the role and importance of technology in production.
Technology increases speed and efficiency, improves quality, saves time and cost, and supports business growth.
3. Describe the responsibilities towards factors of production.
Use natural resources carefully
Provide fair treatment to workers
Use capital efficiently
Make ethical business decisions
Use technology responsibly
4. Explain how education and training improve human capital.
Education gives knowledge and decision-making ability, while training provides practical skills. Together they improve productivity and job opportunities.
5. Discuss how technology can be both beneficial and harmful.
Benefits:
Saves time
Improves quality
Increases production
Harms:
May cause unemployment
Creates dependence on machines
Can create environmental problems
Section I: Case Study Answers
Case Study – 1: Human Capital and Education
- Human capital means skills and knowledge of people.
- Education and training
- Education provides knowledge and understanding.
- Skill training develops practical abilities.
- Technology helps through online classes and digital tools.
Case Study – 2: Technology in Daily Life
- UPI / GPS / Email
- It increases speed and efficiency.
- GPS helps find routes and locations.
- Wheelbarrow / Pulley
- Saves time and effort.
Case Study – 3: Starting a Business
- Land and Labour (or any two factors)
- Labour operates machines and performs work.
- Entrepreneur manages and organizes the business.
- Machines and raw materials cannot be purchased.
- All factors are needed for smooth production.