I. Choose the correct answer
1. Production refers to _________.
- destruction of utility
- creation of utilities
- exchange value
- none of these
Ans : creation of utilities
2. Utilities are in the nature of _________.
- form utility
- time utility
- place utility
- all of these
Ans : all of these
3. Primary factors are _________.
- land, capital
- capital, labour
- land, labour
- none of these
Ans : land, labour
4. The entrepreneur is also called _________.
Ans : organizer
II. Fill in the Blanks.
1. _________ form the back bone of democracy.
Ans : Political parties
2. Every party in our country has to register with _________.
Ans : Election commission
3. Political parties serve as intermediaries between the _________ and _________.
Ans : Citizens and Policy makers
4. A registered but _________ political party cannot contest election on its own symbol.
Ans : Unrecognized
5. The leader of the opposition party enjoys the rank of _________.
Ans : Cabinet minister
III. Match the following
|1. Primary production||Adam Smith|
|2. Time utility||fishing, mining|
|3. Wealth of nation||entrepreneur|
|4. Human capital||stored for future|
|5. Innovator||education, health|
|Ans : 1 – B, 2 – D, 3 – A, 4 – E, 5 – C|
IV. Give short answer.
1. What is production?
It is process of combining various material inputs and immaterial inputs in order to make something for consumption.
2. What is utility?
Utility means want satisfying power of a product.
3. Name the types of utility.
- Form utility
- Place utility
- Time utility
4. What are the factors of production?
- Primary factors – Land and labour
- Derived factors – Capital and organization
5. Define Labour.
Labour is the human input into the production process.
6. Define Division of labour.
Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of a labour or a set of labourers, who are specialists in that particular process.
7. Write the forms of capital.
- Physical Capital or Material Resources.
- Money capital or Monetary resources.
- Human capital or Human Resources.
8. Write the three characteristics of entrepreneur?
- Identifying profitable investible opportunities.
- Deciding the location of the production unit.
- Making innovations.
- Deciding the reward payment.
- Taking risks and facing uncertainties.
V. Give brief answer.
1. Explain the types of production.
There are three types of production
- Primary Production
- Secondary Production
- Tertiary Production or Service Production
- It is carried out by ‘extractive’ industries like agriculture, forestry, fishing, mining and oil extraction.
- These industries are engaged in such activities as extracting the gifts of nature from the earth’s surface, from beneath the earth’s surface and from the oceans.
- This includes production in manufacturing industry, turning out semi-finished and finished goods from raw materials and intermediate goods.
- Example: Conversion of flour into bread, Iron ore into finished steel.
- They are generally described as manufacturing and construction industries, such as the manufacture of cars, furnishing, clothing and chemicals, as also engineering and building.
- Industries in the tertiary sector produce all those services which enable the finished goods to be put in the hands of consumers.
- In fact, these services are supplied to the firms in all types of industry and directly to consumers.
- Examples: Banking, insurance, transport and communications. Government services, such as law, administration, education, health and defence, are also included.
2. What is land? what are the characteristics of land?
Land as a factor of production refers to all those natural resources or gifts of nature which are provided free to man.
Characteristics of Land:
- Land is a Free Gift of Nature
- Land is fixed in supply
- Land is imperishable
- Land is a Primary Factor of Production
- Land is Immovable
- Land has some Original Indestructible Powers
- Land Differs in Fertility
3. Explain the merits and demerits of division of labour.
Merits of division of labour
- It improves efficiency of labour when labour repeats doing the same tasks.
- Facilities the use of machinery in production, resulting in inventions.
Eg. More’s Telegraphic Codes.
- Time and Materials are put to the best and most efficient use.
Demerits of division of labour
- It is monotonous and stale. It kills the humanity in him.
- It is narrow and the labour not to find alternative avenues of employment.
- This results in increased unemployment.
4. Describe the characteristics of capital.
Capital is the man made physical goods used to produce other goods and services.
Characteristics of Capital:
- Capital is a passive factor of production.
- It is man-made.
- It is not an indispensable factor of production.
- It has the highest mobility.
- It is productive.
- It lasts over time.
- It involves present sacrifice to get future benefits.
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