Factors of Production — Hard

Q1. Consider the following two statements about the chapter's classification of inputs in production : Statement A: In economics, the factors of production are classified into four types — land, labour, capital and entrepreneurship. Statement B: Technology is one of the four factors of production and is at par with land, labour and capital. Which of the above is/are correct?

• A. Only Statement A
• B. Only Statement B
• C. Both A and B
• D. Neither A nor B

Q2. Match the shop type with the 'Number in the locality' as recorded by Latha, Asha, Mohan and Kiran in their 'Let's Explore' report List I (Shop type) List II (Number) P. Grocery shops 1. 4 Q. Restaurants/food stalls 2. 8 R. Vegetable vendors 3. 13 S. Mobile repair shops 4. 15 Choose the correct matching

• A. P-3, Q-2, R-4, S-1
• B. P-4, Q-3, R-2, S-1
• C. P-3, Q-4, R-2, S-1
• D. P-1, Q-2, R-4, S-3

Q3. Which of the following is NOT included in the chapter's economic meaning of 'land'?

• A. Soil and forests
• B. Sunlight and air
• C. Minerals, oil and natural gas
• D. Machinery and factory buildings

Q4. Read the two statements about of the chapter: Assertion (A): In Tamil Nadu, many people earn money by working in leather factories, but waste from these factories can pollute rivers and soil. Reason (R): Natural resources used in production are limited and can be harmed if not used responsibly, which is why producers must adopt sustainable practices. Choose the BEST option

• 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.

Q5. A primary teacher tells her CTET class: 'A construction worker carrying bricks and a civil engineer designing a bridge both contribute labour, but the engineer also brings something extra.' Based of the chapter, the 'something extra' is BEST described as

• A. Higher physical strength alone
• B. Human capital — the specialised skills, knowledge, abilities and expertise required to perform that labour
• C. More working hours per day
• D. The wage paid by the employer

Q6. On, the chapter notes that for ancient Indians, 'the tools (a type of technology) used were worshipped; this tradition continues as Viśhwakarmā pūjā or Āyudha pūjā.' Which of the following BEST captures why the chapter places this tradition under 'India's ancient skill heritage'?

• A. Because tool worship was an economic activity that produced revenue for temples.
• B. Because it shows that work was treated as devotion and skill was passed on across generations, building a culture of excellence in workmanship.
• C. Because it proves that tools in ancient India were the most advanced in the world.
• D. Because Viśhwakarmā pūjā replaced the need for training and education in ancient society.

Q7. The German work ethic as an example of a social-cultural influence on human capital. According to the chapter, the German work ethic is BEST associated with

• A. Lifetime employment and seniority-based promotions
• B. Punctuality, attention to detail and quality, contributing to leadership in technology and manufacturing
• C. Group decision-making and consensus
• D. Long lunch breaks and short working hours

Q8. Read the two statements based Statement A: The stock market is a special type of market where shares are bought and sold; large companies raise money from the general public through it. Statement B: A company that raises money through the stock market pays interest to the public who buy its shares. Which is/are correct?

• A. Only Statement A
• B. Only Statement B
• C. Both A and B
• D. Neither A nor B

Q9. On the basis of, which of the following is NOT counted as 'capital' in Ratna's restaurant?

• A. The kitchen equipment Ratna bought
• B. The furniture inside Pause Point
• C. The money Ratna used to take the shop on lease
• D. The sunlight that falls on her vegetable garden behind the shop

Q10. Arrange the following events from the J.R.D. Tata case study in correct chronological order: (i) J.R.D. Tata was born. (ii) J.R.D. Tata started India's first airline, Tata Airlines, which later became Air India. (iii) J.R.D. Tata received the Bharat Ratna for his great service to the nation. The correct order is

• A. (i) → (ii) → (iii)
• B. (ii) → (i) → (iii)
• C. (i) → (iii) → (ii)
• D. (iii) → (ii) → (i)

Q11. Match each task performed by an entrepreneur (Fig. 7.16, ) with the correct example: List I (Task) List II (Example) P. Identifies a problem and offers an innovative solution 1. Aarti decides to use solar drying instead of LPG, lowering costs Q. Takes risks by investing money and time 2. Aarti puts in her ₹3 lakh savings into the dryer setup R. Combines various factors of production 3. Aarti rents a shed, hires two helpers, and buys a dryer S. Contributes to the welfare of society 4. Aarti's dried produce reduces wastage of village mangoes Choose the correct matching

• A. P-1, Q-2, R-3, S-4
• B. P-2, Q-1, R-4, S-3
• C. P-3, Q-2, R-1, S-4
• D. P-4, Q-3, R-2, S-1

Q12. On, the chapter gives UPI (Unified Payments Interface), GPS and farmer weather updates as examples of

• A. Factors of production replacing labour entirely
• B. Capital goods that are bought by businesses
• C. Newer and advanced technological developments that make our lives easier and assist various activities
• D. Natural resources covered under the term 'land'

Q13. Consider the following statements based Statement A: The four factors of production complement each other and are interconnected; missing or misusing some factors can make production inefficient or halt it. Statement B: New techniques cannot change the proportion of factors used; if a sector starts out labour-intensive, it remains so forever. Which is/are correct?

• A. Only Statement A
• B. Only Statement B
• C. Both A and B
• D. Neither A nor B

Q14. Which option BEST captures the chapter's definition of 'supply chain'?

• A. A chain of retail outlets owned by a single large company.
• B. A network of individuals, organisations, resources, activities and technology that are involved in the production and sale of goods.
• C. The price list followed by all sellers of a particular good.
• D. A government scheme that fixes minimum support prices for farmers.

Q15. Three responsibilities businesses have towards their workers. Which of the following is NOT among the three responsibilities listed in the chapter?

• A. Fair compensation and working conditions — paying workers fairly and ensuring a safe environment
• B. Skill development and training — investing in training and education so workers remain competitive
• C. Workplace rights and protections — following laws on fair treatment, anti-discrimination, healthcare and paid leave
• D. Guaranteed lifetime employment to every worker who joins the business