Production Online Test 7th Social Science Lesson 8 Questions in English

Explanation: There are two main activities in an economy, production and consumption. Similarly there are two kinds of people, producers and consumers.

Explanation: Production is the process of changing the raw materials into finished product.

Explanation: Production in economics refers to the creation of those goods and services which have exchange value. It means the creation of utilities.

Explanation: Utility means want satisfying power of a product. Utilities are in the nature of form utility, time utility and place utility.

Explanation: Form utility If the physical form of a commodity is changed, its utility may increase. Eg. Cotton increases, if it is converted into clothes.

Explanation: Place utility If a commodity is transported from one place to another, its utility may increase. Eg. If rice transported to Tamilnadu to Kerala, its utility will be more.

Explanation: If the commodity is stored for future usage, its utility may increase. Eg. Agricultural commodities like Paddy, Wheat, etc. are stored for the regular uses of consumers throughout the year.

Explanation: Indian Economy is a Mixed Economy. Private and Public Sector are existing together

Explanation: Primary production is carried out by ‘extractive’ industries like agriculture, forestry, fishing, mining and oil extraction.

Explanation: Secondary Production This includes production in manufacturing industry, turning out semi-finished and finished goods from raw materials and intermediate goods, conversion of flour into bread or iron ore into finished steel.

Explanation: 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 cover distributive traders, banking, insurance, transport and communications. Government services, such as law, administration, education, health and defence, are also included.

Explanation: The most to the Gross Domestic Product of our country is contributed by the tertiary sector.

Explanation: Factors of production 1. Primary Factors and 2. Derived Factors.

Explanation: Primary factors are land and labour. These are naturally given and without them no goods can be produced.

Explanation: Derived factors are Capital and Organization.

Explanation: These derived factors, when combined with the primary factors of production, raise total production.

Explanation: The entrepreneur is also called ‘Organizer’. In, modern times, an entrepreneur is called ‘the changing agent of the society’.

Explanation: 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

Explanation: An entrepreneur is a person who combines the different factors of production (land, labour and capital), in the right proportion and initiates the process of production and also bears the risk involved in it.

Explanation: Land as a factor of production refers to all those natural resources or gifts of nature which are provided free to man.

Explanation: In any kind of production process, we have to start with land. For example, in industries, it helps to provide raw materials, and in agriculture, crops are produced on land. It cannot be transported from one place to another. For instance, no portion of India’s surface can be transported to some other country.

Explanation:There are some original and indestructible powers of land, which a man cannot destroy. Its fertility may be varied but it cannot be destroyed completely.

Explanation: Labour is the human input into the production process. Alfred Marshall defines labour as, ‘the use of body or mind, partly or wholly, with a view to secure an income apart from the pleasure derived from the work.

Explanation : Adam smith is known as Father of Economics and his Economics is wealth Economics.He wrote two classic works, "The Theory of Moral sentiments(1759)",and "An inquiry into the nature and causes of the wealth of Nations (1776)".

Explanation: Labour is more perishable than other factors of production. It means labour cannot be stored. The labour of an unemployed worker is lost forever for that day when he does not work. Labour can neither be postponed nor accumulated for the next day. It will perish. Once time is lost, it is lost forever.

Explanation: Labour is an active factor of production. Neither land nor capital can yield much without labour.

Explanation: Labour is not homogeneous. Skill and dexterity vary from person to person. Labour cannot be separated from the labourer. Labour is mobile. Man moves from one place to another from a low paid occupation to a high paid occupation

Explanation: Individual labour has only limited bargaining power. He cannot fight with his employer for a rise in wages or improvement in work-place conditions. However, when workers combine to form trade unions, the bargaining power of labour increases.

Explanation: Adam smith is known as Father of Economics and his Economics is wealth Economics. He wrote two classic works, "The Theory of Moral sentiments(1759)",and "An inquiry into the nature and causes of the wealth of Nations (1776)".

Explanation: The concept ‘Division of Labour’ was introduced by the Adam Smith in his book ‘An enquiry into the nature and causes of wealth of nations’.

Explanation: 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. Ex. More’s Telegraphic Codes. • Time and Materials are put to the best and most efficient use.

Explanation: Capital is the man-made physical goods used to produce other goods and services. In the ordinary language, capital means money.

Explanation: According to Marshall, ’Capital consists of those kinds of wealth other than free gifts of nature, which yield income’.

Explanation: In economics, capital refers to that part of man-made wealth which is used for the further production of wealth. All wealth is not capital but all capital is wealth.

Explanation: Forms of capital : 1. Physical Capital or Material Resources Ex. Machinery, tools, buildings, etc. 2. Money capital or Monetary resources Ex. Bank deposits, shares and securities, etc. 3. Human capital or Human Resources Ex. Investments in education, training and health

Explanation: The entrepreneur is also called ‘Organizer’. In, modern times, an entrepreneur is called ‘the changing agent of the society’. He is not only responsible for producing the socially desirable output but also to increase the social welfare.

Explanation: 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.