Class IX- Economics

Class IX- Economics

Ch 1- story of village palampur

Overview: The story gives the idea of production and employment in the villages of India. Palampur is a hypothetical village. Farming is the main activity. Besides dairy farming, shop keeping, small scale manufacturing etc.. are other activities. Palampur is connected with Raiganj a big village (3 kms away) and Shahpur a small town.

Transportation in Palampur:

Many kinds of vehicles like tongas, bullock carts, bogeys (carts drawn by buffalos ) loaded with jaggery, jeeps motor vehicles, tractors and trucks are also seen in the village.

Families in Palampur

There are around 450 families lived in palampur, 80 upper caste families who own land in the village. The dalits (SCs) comprise one third of the village who live in much smaller houses made of mud and straw.

Facilities

The village had the facilities of electricity, tube wells, 2 primary schools, one high school, a primary health centre run by the government and one private dispensary.

Factors of Production

Resources that are needed in the production process

4 types:

There are four requirements of production:

1. Land: contains natural resources, water, forests and minerals.

2. Labour: People do the work and manufacture goods and services. Labourers may be skilled, unskilled, educated and uneducated depending upon the production work and requirement.

3. Physical capital: these are inputs needed at every stage of production. It is of two types: fixed capital and working capital.

a. fixed capital: Tools, machines, buildings etc.. These are used up completely in the production process.

b. working capital: Raw materials and money in hand . This capital is used for many years.

4. Human capital: The fourth important requirement is human capital. Without human Capital production cannot be done as it brings together the other factors of production.

LAND

Includes free gifts of nature
Includes land surface and anything that grows on it or can be taken from it.
Example- soil, minerals, water
Basic constraint for land is that it is fixed. With increase in population, more is to be grown form same piece of land.

Ways to increase production from same land:

Crop Rotation- is a practice of growing crops on rotation on the same piece of land.
Multiple Cropping- is a practice of growing two of more crops together on same piece of land
Use of Modern Farming Methods- it includes

using HYV seeds to increase the production
using fertilizers to maintain soil fertility
Using machines to make work easy and fast
Use of irrigation facilities to reduce the dependence on monsoons.

GREEN REVOLUTION

It refers to an increase in the production of wheat and rice using HYV seeds, chemical fertilizers, pesticides etc.

POSITIVE IMPACT-

There was a manifold increase in the production of rice and wheat from same piece of land

India has become self sufficient in foodgrains and has started exporting also

NEGATIVE IMPACT-

Continuous use of ground water for irrigation has reduced the water table.

Loss of soil fertility due to increased use of fertilizers

LABOUR

It includes the people who work.
Sources of labour:

For small farmer- Farmer himself along with his family members provide labour on the land
For Large farmer- landless and small farmers are hired to work on large farmer’s land.

Farm Labourer- These are the landless families or small farmers who work on land
Conditions of Farm Labourers:

No right over crops grown on land.
Paid wages in cash or kind
Receive less wages because of heavy competition.
Take loans from money lenders.

CAPITAL

Capital means the inputs needed at every stage of production.
Two types- Fixed capital, working capital

Working capital needed in farming- seeds, fertilizers, pesticides, manure etc

Fixed capital used in farming- tractors, machines , tools etc.

How is the capital arranged

By small farmer-

Borrowing from moneylenders or large farmers
Works on large farmer’s land to get income

For Large and Medium farmers-

Borrowings from bank
Sale of the surplus in market to earn money
Using past savings

Non Farm Activities

These are the activities other than farming.
Example- Dairy Farming, transportation, small scale manufacturing etc
Importance-

They are needed in the village to earn livelihood
Since land in fixed, so everyone cannot work as a farmer

Ways to start or increase non farm activities

Open training centre to train in activites like candle making, basket making etc
Giving loans at low rate of interest to people to start a non farm activity
Constructing all weather roads to improve transportation
Developing markets nearby for setting up of shops

Q1. What is the aim of production?

Aim of production is to produce goods and services.

Q2. What are the four requirements of production?

There are four requirements of production:

1. Land: contains natural resources, water, forests and minerals.

2. Labour: People do the work and manufacture goods and services. Labourers may be skilled, unskilled, educated and uneducated depending upon the production work and requirement.

3. Physical capital: these are inputs needed at every stage of production. It is of two types: fixed capital and working capital.

a. fixed capital: Tools, machines, buildings etc.. These are used up completely in the production process.

b. working capital: Raw materials and money in hand . This capital is used for many years.

4. Human capital: The fourth important requirement is human capital. Without human Capital production cannot be done as it brings together the other factors of production.

Q3. How is land fixed in the village Palampur?

75 % of people depend on farming. Land area in the village under cultivation is fixed. Since 1960 there has been no expansion in land area under cultivation. No further scope to increase farm production.

Q4. What is standard unit of measuring land in hectare?

Bigha, guintha etc.. are the local standard units of measuring land in hectares in the villages of India.

Q5. What are the different crops grown in the Indian villages during different seasons?

a)Kharif crops like jowar, Bajra are grown in rainy seasons. These plants are grown as cattle feed.

b) It is followed by cultivation of potato between October and December.

c)In the winter season, rabi crops like wheat, sugar cane are grown.

Q6. How are the villagers able to grow more than one crop in palampur?

Ways to increase production from same land:

1.Crop Rotation- is a practice of growing crops on rotation on the same piece of land.

2.Multiple Cropping- is a practice of growing two of more crops together on same piece of land

3.Use of Modern Farming Methods- it includes

using HYV seeds to increase the production
using fertilizers to maintain soil fertility
Using machines to make work easy and fast
Use of irrigation facilities to reduce the dependence on monsoons.

Q7. What do you mean by multi cropping and dual cropping?

Multicropping: To grow more than one crop in the same field is known as multiple cropping. This system gives high yield.

Dual cropping: To grow two crops in the same piece of land.

Q8. What is Green revolution?

Excessive production in agriculture due to use modern scientific methods is called green revolution.

Q9. What is HYV ?

In late 1960s HYVs were introduced, which were a great boon to agriculture. These are High Yielding Varieties of seeds which guarantees greater qualitative and quantitative production. HYV seeds need plenty of water and also chemical fertilizers and pesticides to produce best results.

Q10. Which states of India were the first to use modern methods of agriculture?

Punjab, Haryana and Western Uttar Pradesh were the first states to use modern methods of agriculture and made use of HYV seeds, pesticides, chemical fertilizers etc..

Q11. What is the difference between multiple cropping and modern farming method?

Multiple cropping: In this method more than one crop is grown on a single piece of land. For example: Wheat – bajra – potato.

Modern farming methods: In this method modern HYV seeds, chemical fertilizers, modern tools and machineries are used. This provides high yields.

Q12. How modern methods have over used the natural resources and violated the resources?

Green revolution is associated with the loss of soil fertility.
Continuous use of ground water for tube well irrigation has reduced the water – table below the ground.
Chemical fertilizers may destroy the bacteria and other micro organisms in the soil.
The consumption of chemical fertilizers in Punjab is highest in the country.

Q13. How is land distributed between the farmers of Palampur and Indian villages?

Land is unevenly distributed among the farmers of the villages.
Some farmers have large lands while some have very small and others have no land at all
The land is getting divided hereditarily into smaller and smaller area. These divisions may result in poor and unsatisfactory production leading to poor economic status to the country.

Q14. Who will provide work to landless farmers?

Landless farmers work in the field of rich farmers for wages. They are paid salary than what is fixed by the government.

Q15. What is the problem of Dala and Ramkali?

Dala and Ramkali are landless labourers.
They work in the fields of others but now a days they don’t get work because many rich farmers use modern tractors, machines etc.. and employ very less human labourers
To run their livelihood Dala and Ramkali get loans. This further keep them in debt for ever.
Landless farmers get jobs for a short duration and rest of the time they are engaged in some other odd jobs.
They get very less salaries for their work.

Q16. Why do small and landless farmers need capital? Explain with examples.

They need capital to purchase seeds, fertilizers and pesticides.
Small farmers have to borrow money from large farmers of the village or money lenders or the traders who supply various inputs for cultivation.
Farmers need capital as they don’t have surplus of their own.

Q17 What is surplus? What do the farmers do with the surplus?

Surplus are the excessive amount of production produced by the farmers. It is what is left with them after self consumption.

The farmers use the surplus as capital for the next year. This can be used to purchase machines, lend money or save in the bank.

Q18. Write short note on

a. Dairy farming b. small scale manufacturing c. shopkeeping d. transport

a. Dairy farming : Dairy farming is a common activity in Palampur . People feed their buffalos on various kinds of grass and the jowar and bajra that grows during rainy season.

Milk is sold in Raiganj. Traders of Shahpur have set up collectrion cum chilling centres at Raiganj

b. small scale manufacturing: Very simple production is done in the village. People produce baskets, gur etc.. in small scale. Mishrilal of Palampur produce Jaggery and sell in Shahpur. He makes a small profit. He owns a crushing machine as capital.

c. shopkeeping: Some villagers sell rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles etc.. People whose houses are close to the bus stand use a part of the space to open small shops. Some sell eatables like pakoras, samosas etc.. In Palampur Kareem had opened a computer centre. Students from shahpur town had joined it. He had appointed two women of his village to work in his centre. In this way he is self employed and have given employment to others.

d. transport: Transport is another major activity of villages. Rickshwas, Tongas, jeeps, tractors, trucks are some of the vehicles found here. Some people are engaged in this line too. Kishora of Palampur village own a buffalo. The buffalo gives milk and also draws cart for him. Every he goes to ganga river to fetch clay for the potters of the village. Kishora is engaged in multi economic activity.

Multiple Choice Questions

(i) Multiple cropping stands for:

(a) Hybrid plantation method

(b) Plantation using many techniques

(d) Growing mandatorily four crops

(ii) Bigha and Guintha are:

(a) Type of soil (b) Type of seeds

(iii) Fixed capital stands for:

(a) Tools, machines, buildings etc. which can be used in production over many years

(b) Money deposited in the bank

(d) Total share of capital

(iv) Which one of the following is a non-economic activity?

(a) Milkman selling milk (b) Farmer sowing seeds

(v) Marginal (small) farmers are those

(a) who use modern methods of farming

(b) who practice crop rotation for farming

(d) none of the above

(vi) Which one of the following is not a working capital

a)Machines

b)Raw matrials

c)Money

d)None of these

(vii) Which of these places was the first to try out the modern farming methods

a)Bihar

b)Haryana

c)Jharkhand

d)Orissa

(viii) Which is the most abundant factor of production in India

a)Land

b)Labour

c)Capital

d)Human Capital

(ix) Jowar and Bajra are

a)Kharif crops

b)Rabi Crops

c)Zaid Crops

d)None of these

(x) Which of these a non farm activity

a)Multiple Cropping

b)Crop Rotation

c)Dairy Farming

d)Modern Farming

(xi) which one of the following is not a source or capital for small farmer

a)Borrowing from bank

b)Borrowing from money lender

c)Borrowing from a large farmer

(xii) a tremendous increase in the production of wheat and rice as a result of use of modern farming methods is termed as:

a)White revolution

b)Green revolution

c)Golden revolution

d)None of these

(Xiii) Farmers owing more than 10 hectares of land are called as

a)Marginal farmers

b)Small farmers

c)Medium farmers

d)Large farmers

(xiv) which of the following is not true for a small farmer

a)Owns less than 2 hectare of land

b)Borrows from the moneylender

c)Produces for sale in the market

d)Also works on the land of large farmer

(xv) which of these areas in India is comparatively less irrigated

a)Riverine plains

b)Coastal areas

c)Deccan plateau

d)None of these

(xvi) which of the following is not true for chemical fertilizers

a)Provides minerals which dissolve in water and are immediately available to the plants

b)Pollutes groundwater

c)Can kill bacteria and other micro organisms

d)Increases the soil fertility in the long run