Economics: Production Requirements

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Questions and Answers

What are the four factors of production mentioned in the text?

land, labour, physical capital, and human capital

What is the primary production activity in Palampur?

Farming

What is the constraint in raising farm production in Palampur?

The fixed land area under cultivation

What is referred to as 'capital' in this chapter?

Physical capital Signup and view all the answers

What is the relationship between farm production and the well-being of the people in Palampur?

The well-being of the people is closely related to production on the farms Signup and view all the answers

What is the primary goal of production?

To produce the goods and services that we want. Signup and view all the answers

What are the two types of physical capital mentioned in the text?

Fixed capital (tools, machines, buildings) and working capital (raw materials and money in hand) Signup and view all the answers

What is the second requirement for production, and what type of workers are needed for this requirement?

The second requirement is labour, and it requires people who can do various tasks, including highly educated workers and manual workers. Signup and view all the answers

What is the purpose of raw materials and money in hand in production?

Raw materials are used to make the goods and services, and money in hand is used to make payments and buy other necessary items. Signup and view all the answers