Class 9 Economics The Story of Village Palampur

VELAMMAL VIDYALAYA
HIGH SCHOOL COMPARTMENT

COMMON NOTES (2021-22)
CLASS: IX
SUBJECT: ECONOMICS
CHAPTER 1 – THE STORY OF VILLAGE PALAMPUR
Q1 Which is the main production activity in villages across India?

Ans: Farming is the main production activity in villages across India.
Q2 Name any two non-farming activities in Palampur village.

Ans: Small-scale manufacturing , dairy farming , transport , services etc.
Q3 Who owns the majority of land in Palampur village?

Ans: 80 upper caste families own the majority of land in Palampur village.
Q4 What educational facilities are available in Palampur village?

Ans: Palampur has two primary schools and one high school.
Q5 What health facilities are available in Palampur village?

Ans: Palampur has a primary health centre run by the government and one
private dispensary where sick are treated.
Q6 What is the main aim of production?

Ans: The main aim of production is to produce goods and services required by
the people.
Q7 What is marketable surplus?

Ans: The difference between the quantity of output that a farmer produces
during a year and the quantity that he keeps with himself for his own and
family’s consumption is called marketable surplus.
Q8 Who are small farmers?

Ans: Farmers who own less than 2 hectares of land.
Q9 Who are medium farmers?

Ans:Farmers who own more than 2 hectares and less than 10 hectares of land.
Q10 Who are large farmers?

Ans: Farmers who own more than 10 hectares of land.
Q11 What is the basic constraint in raising farm production?

Ans Land area under cultivation is the basic constraint in raising farm
production because it is fixed and scarce.
Q12 What is the minimum wage rate for a farm labourer?
Ans The minimum wages for a farm labourer set by government is Rs 300
(2017) per day.
Q13 Which is the most abundant factor of production?

Ans Labour is the most abundant factor of production.
Q14 What do medium and large farmers do with their earnings from the
surplus farm produce?
Ans: A part of the earnings from surplus farm produce is saved e kept for
buying capital for the next season. Another part may be utilized for landing to
small farmers who require loan.
Q15 Which changes have taken place in the way of farming practiced in
India?
• Traditional seeds have been replaced by HYVs.
• Cow dung and other natural manure were replaced by chemical
fertilizers.
• Use of pesticides.
• Use of farm machinery like tractors , threshers etc for ploughing and
harvesting.
• Use of tubewells for irrigation instead of Persian wheels.
Q16 How did the spread of electricity help the people of Palampur?
• Electricity helped farmers in running the tubewells in the field and is
also used for carrying out various small scale business in the village.
• The electricity run tubewells, irrigate larger areas of land in more
effective manner that Persian wheels which were earlier used to draw
water from the wells to irrigate the fields.
Q17 Why are the wages of farm labourers in Palampur less than the
minimum wages?
Ans The minimum wages for a farm labourer set by the government is Rs 60
per day but a farm labourer in Palampur gets only Rs 35-40 per day. It is
because there is heavy competition for work among the farm labourer in
Palampur, so people agree to work at lower wages.
Q18 Describe the work of a farmer with 1 hectare of land?

• A farmer with less than 2 hectares of land is regarded as a small farmer.
Since the size of plot is very small, therefore, he cannot fulfill the needs
of his family.
• He will have to work as a farm labourer in the fields of medium and large
farmers for an amount of Rs 40-50 per day.
• In order to cultivate his field he will have to borrow money from large
farmers or moneylenders or traders.
• From the borrowed money he will buy fertilizers, pesticides, seeds etc.
Q19 Give the characteristics of Rural Industries.
Ans Rural Industries are small scale manufacturing units. Their features are:-
• These involve very simple production methods.
• The output is very small.
• The work is carried out by the members of the family and rarely the
labourers are hired.
• The work is carried out at home and not in workshops.
• The profits earned are also less.
Q20 What are the different ways of increasing the production on the same
piece of land?
Ans: Following are the 5 different ways of increasing the production on the
same piece of land:
• Use of multiple cropping. It means growing more than one crop on a
given piece of land at the same time.
• Use of HYV’s. These can be used to produce much greater amounts of
grain in a single plant.
• Chemical fertilizers and Pesticides. Their use produce better results by
providing sufficient materials to the soil and pesticides protecting the
crops from pest attacks.
• Modern equipments like tractors, threshers, which made ploughing and
harvesting faster.
• Tubewell irrigation. Electricity run tubewells irrigate much larger area in
a more effective manner and increase the yields.
Q21 How do medium and large farmers obtain capital for farming? How is
it different from the small farmers?
• Medium and large farmers sell surplus farm produce in the market and
earn good money.
• The money so earned is used to buy capital for farming in the next
season. Thus medium and large farmers are able to arrange for capital
for farming from their own savings.
• On the other hand, small farmers do not have their own savings because
their production is small which is mainly used for fulfilling their own
family needs. Small farmers therefore, avail loans from the medium and
large farmers at very high rates of interest.
• Small farmers also borrow money from various inputs for cultivation.
• These farmers are put to a great distress to repay the loan.
Q22 Explain the 4 factors of production?

Ans The aim of production is to provide goods and services that we want. There
are four requirements for the production of goods and services which are
known as factors of production. These are:
• Land and other natural resources such as water, minerals, forests etc. .
• Labour. It refers to the people who will do work for us. There are two
types of labour: Skilled Labour. These are the high trained or educated
workers to perform the special and necessary tasks. Unskilled Labour.
These people do the manual physical work.
• Physical Capital. It refers to the variety of inputs required at every stage
of production. It is of two types.
• Fixed Capital. Tools, machines, buildings etc. that can be used for
production over many years. Working Capital. Raw material and money
in hand and other inputs that get used up in one round of production
only.
• Human Capital / Entrepreneur. It refers to the knowledge and enterprise
required to combine land, labour and physical capital to produce the
output.
Q23. Who is a farm labourer? Throw a light on their economic condition.

Ans: A farm labourer is a person who works on the land owned by another
person. He is paid for his services in the form of wages by the landowner.
Wages may be paid in cash or kind.
• Farm labour is generally comprised of landless people and/or very small
farmers whose owned land does not generate enough to support even
bare subsistence living.
• Farm labourers may get a regular job on a farm and may work
throughout the year.
• But agriculture is a seasonal activity. More often, farm labourers get
employed only during a particular seasonal activity e.g. ploughing of land
harvesting and threshing of crop.
• More generally, there are more persons willing to work as farm labourers
than are required at any point of time.
• Introduction of farm machinery has substantially reduced the demand
for farm labour.
• Landowners are in a position to exploit this opportunity to their
advantage.
• They pay them less wages.
• These may even be less than the minimum wages fixed by the
government.
• But since the choice is between their starvation and some wages , they
opt for the latter.
• Farm labourers are compelled to borrow, once in debt , they find it
difficult to get out of it.
• Farm labourers live a life of destitution.
Q24. Differentiate between traditional and modern methods of farming.

• Traditional methods of farming is entirely depend on rainfall where as
modern methods of farming use irrigation facilities by constructing dams
and canals.
• In traditional methods of farming ordinary seeds , manures and simple
tools were used where as in modern methods of farming HYV seeds,
fertilizers and machineries are used.
• Agricultural productivity is very low in traditional methods where as it
is very high in modern methods of farming.
Q25. What are the non farm activities in Palampur? Explain.
• Dairy: Dairy is a common activity in many families of Palampur. People

feed their buffalos on various kinds of grass and the jowar and bajra that
grow during the rainy season. The milk is sold in Raiganj, the nearby
large village.
• Small scale manufacturing: Unlike the manufacturing that takes place in
the big factories in the towns and cities, manufacturing in Palampur
involves very simple production methods and are done on a small scale.
They are carried out mostly at home or in the fields with the help of
family labour. Rarely are labourers hired.
• Shop-keeping: People involved in trade (exchange of goods) are not many
in Palampur. The traders of Palampur are shopkeepers who buy various
goods from wholesale markets in the cities and sell them in the village.
• Transport: There is variety of vehicles on the road connecting Palampur
to Raiganj. Rickshawallahs, tongawallahs, jeep, tractor, truck drivers and
people driving the traditional bullock cart and bogey are people in the
transport services. They ferry people and goods from one place to
another, and in return get paid for it. The number of people involved in
transport has grown over the last several years.

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VELAMMAL VIDYALAYA

HIGH SCHOOL COMPARTMENT

CHAPTER 1 – THE STORY OF VILLAGE PALAMPUR

Q1 Which is the main production activity in villages across India?

Q2 Name any two non-farming activities in Palampur village.

Q3 Who owns the majority of land in Palampur village?

Q4 What educational facilities are available in Palampur village?

Q5 What health facilities are available in Palampur village?

Q6 What is the main aim of production?

Q7 What is marketable surplus?

Q8 Who are small farmers?

Q9 Who are medium farmers?

Q10 Who are large farmers?

Q11 What is the basic constraint in raising farm production?

Q13 Which is the most abundant factor of production?

Q18 Describe the work of a farmer with 1 hectare of land?

Q22 Explain the 4 factors of production?

Q23. Who is a farm labourer? Throw a light on their economic condition.

Q24. Differentiate between traditional and modern methods of farming.

Q25. What are the non farm activities in Palampur? Explain.

• Dairy: Dairy is a common activity in many families of Palampur. People

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