Capital in production includes:

Machinery, tools, buildings and financial resources

Technology in production means:

Application of scientific knowledge to get work done better

Only replacing workers with robots

Which statement about factors of production is TRUE?

They are independent and unrelated

They complement and are interconnected

Education contributes to human capital by:

Providing knowledge and problem‑solving abilities

Training helps students by:

Translating classroom ideas into practical skills

Good health improves productivity because:

It supports regular attendance and better performance

A noted trait in German work culture highlighted in the chapter is:

Punctuality and attention to detail

A possible impact of school drop‑out on future outcomes is:

Higher employability automatically

Reduced skills and earnings potential

A business lacking skilled workers may face:

Higher product quality without costs

Production delays and quality issues

‘Demographic dividend’ refers to a situation with:

A large share of working‑age population that can boost growth

Which is a common initial source of capital for small businesses?

Personal savings, family and friends

A bank loan usually involves:

Repayment only if profits exist

Large companies often raise capital by:

Selling shares to the public in stock markets

A share of profits paid to shareholders

UPI (in examples of technology) helps by:

Enabling quick digital payments

GPS can improve production by:

Finding shortest delivery routes and saving time

Drones in agriculture can:

Spray inputs and monitor crop health

Pulleys and wheelbarrows represent:

Obsolete tools with no use today

Simple technologies still useful

An entrepreneur primarily:

Identifies problems and mobilises resources to solve them

Which is NOT a typical task of an entrepreneur?

Combining land, labour and capital

Setting vision for products/services

A key lesson from J.R.D. Tata’s story is:

Business should focus only on profits

Entrepreneurship can blend industry building with social responsibility

Workers’ welfare is unimportant

Entrepreneurship benefits society by:

Creating innovative solutions and jobs

‘Pause Point’ example shows that starting a business needs:

Choosing location, arranging finance, hiring staff

A startup that converts crop waste to packaging is leveraging:

Entrepreneurship and technology

Stock markets allow companies to:

Sell ownership shares to raise funds

Mobile phone manufacturing typically requires:

R&D, land, machinery, skilled labour, finance, and logistics

COVID‑19 highlighted that over‑reliance on distant inputs can:

Create vulnerabilities and stoppages

Combining factors efficiently means:

Using the right mix of land, labour, capital, entrepreneurship and technology

Using natural resources responsibly means:

Reducing waste and preventing environmental damage

Maximising short‑term profits only

NCERT Solutions Class 8 Social Science - Exploring Society India and Beyond Chapter 7 – Factors of Production

Name: Factors of Production – Class 8 Social Science - Exploring Society India and Beyond
Uploaded: 2026-04-15
Description: India’s growth depends on efficiently using land, labour, capital, and entrepreneurship, supported by technology and human capital. Education, health, and training enhance productivity, while sustainable practices ensure resources are preserved for future generations.

Class 8 Social Science - Exploring Society India and Beyond

Last Updated: 15 April 2026

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Chapter Introduction

India’s growth depends on efficiently using land, labour, capital, and entrepreneurship, supported by technology and human capital. Education, health, and training enhance productivity, while sustainable practices ensure resources are preserved for future generations.

हिंदी में (Hindi)

भारत की वृद्धि भूमि, श्रम, पूंजी और उद्यमिता का कुशल उपयोग, तकनीक और मानव संसाधन के समर्थन से संभव है। शिक्षा, स्वास्थ्य और प्रशिक्षण उत्पादकता बढ़ाते हैं, जबकि सतत प्रथाएँ संसाधनों को भविष्य के लिए सुरक्षित रखती हैं।

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Important Points

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Practice MCQ Questions (60 questions)

Q1. Which of the following is NOT a traditional factor of production?

Q2. In economics, the term 'land' includes:

Q3. ‘Labour’ refers to:

Q4. ‘Human capital’ best describes:

Q5. Entrepreneurship primarily involves:

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Frequently Asked Questions (FAQ)

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Tough Words (Glossary)

Productivity

Meaning: How much output is produced from given inputs in a period.

अर्थ: उत्पादकता

"Improving skills raised the factory’s productivity."

Efficiently

Meaning: Using time and resources with least waste.

अर्थ: कुशलतापूर्वक

"The team used land and money efficiently to start the unit."

Factors of production

Meaning: Basic inputs used to make goods and services: land, labour, capital, entrepreneurship.

अर्थ: उत्पादन के कारक

"All four factors of production are needed to run a restaurant."

Land (economic)

Meaning: Natural resources used in production such as soil, water, minerals and the site.

अर्थ: भूमि (आर्थिक अर्थ)

"The company leased land near the highway."

Labour

Meaning: Human effort—physical and mental—used in production.

अर्थ: श्रम

"Skilled labour makes better furniture faster."

Capital

Meaning: Money and man‑made tools, machines and buildings used to produce.

अर्थ: पूंजी

"New machines increased the capital of the workshop."

Entrepreneurship

Meaning: The ability to start and organise business by taking risks.

अर्थ: उद्यमिता

"Her entrepreneurship turned a small idea into a cafe chain."

Technology

Meaning: Application of scientific knowledge to do work better.

अर्थ: प्रौद्योगिकी

"Using UPI is a simple technology that speeds payments."

Human capital

Meaning: People’s skills, knowledge and experience that raise productivity.

अर्थ: मानव पूंजी

"Training cooks built strong human capital in the kitchen."

Infrastructure

Meaning: Basic systems like roads, power, internet and hospitals that support activity.

अर्थ: आधारभूत संरचना

"Good infrastructure helped the factory deliver on time."

Cognitive development

Meaning: Growth of thinking and learning abilities.

अर्थ: संज्ञानात्मक विकास

"Healthy children show better cognitive development in school."

Training

Meaning: Planned practice to learn a skill for a job.

अर्थ: प्रशिक्षण

"Hands‑on training taught the intern to operate the mixer."

Kaizen

Meaning: Japanese idea of continuous improvement in small steps.

अर्थ: काइज़न (निरंतर सुधार)

"The team used kaizen to improve service each week."

Work ethic

Meaning: Values like discipline, punctuality and quality in work.

अर्थ: कार्य नैतिकता

"Her strong work ethic inspired the whole staff."

Demographic dividend

Meaning: Economic benefit when a country has many working‑age people.

अर्थ: जनसांख्यिकीय लाभांश

"With training, India can turn its youth into a demographic dividend."

Literacy

Meaning: Ability to read and write.

अर्थ: साक्षरता

"Higher literacy helps workers learn new machines faster."

Apprenticeship

Meaning: Learning a trade under a skilled worker.

अर्थ: प्रशिक्षुता/शागिर्दी

"He joined a carpentry apprenticeship after school."

Heritage

Meaning: Valued traditions and skills passed across generations.

अर्थ: विरासत

"Stitched shipbuilding is part of India’s maritime heritage."

Shilpa Shastras

Meaning: Ancient Indian texts giving design rules for arts and crafts.

अर्थ: शिल्प शास्त्र

"Temple sculptors followed guidelines from the Shilpa Shastras."

Maritime

Meaning: Related to the sea, shipping and ocean trade.

अर्थ: समुद्री

"Maritime trade linked Indian ports to many countries."

Stitched shipbuilding

Meaning: Boat‑making by sewing wooden planks with cords, not nails.

अर्थ: सिला हुआ जहाज़‑निर्माण

"Stitched shipbuilding made hulls flexible for rough seas."

Procurement

Meaning: Process of obtaining goods or services for work.

अर्थ: क्रय/अधिप्राप्ति

"Procurement of spices is vital for the restaurant."

Supply chain

Meaning: Network that moves a product from inputs to customer.

अर्थ: आपूर्ति शृंखला

"A broken supply chain stopped phone assembly."

Disruption

Meaning: A break or interruption that stops normal activity.

अर्थ: व्यवधान

"Floods caused disruption in vegetable deliveries."

Labour‑intensive

Meaning: Needing more human work than machines.

अर्थ: श्रम‑प्रधान

"Handloom weaving is a labour‑intensive activity."

Capital‑intensive

Meaning: Needing more machines and money than workers.

अर्थ: पूंजी‑प्रधान

"Chip manufacturing is capital‑intensive."

Research and Development (R&D)

Meaning: Work to design, test and improve new products or processes.

अर्थ: अनुसंधान एवं विकास (आर एंड डी)

"The R&D team added a better camera to the phone."

Assembly

Meaning: Putting parts together to make a final product.

अर्थ: संयोजन

"Assembly of the laptops happens on this line."

Quality control

Meaning: Checking products to meet set standards.

अर्थ: गुणवत्ता नियंत्रण

"Quality control rejected cracked screens."

Distribution

Meaning: Sending finished goods to shops or customers.

अर्थ: वितरण

"Cold trucks help in milk distribution."

Sustainability

Meaning: Using resources so needs are met without harming future needs.

अर्थ: सततता

"Sustainability requires recycling e‑waste safely."

Recycling

Meaning: Processing used items to make them usable again.

अर्थ: पुनर्चक्रण

"Recycling paper saves trees and water."

Wastewater

Meaning: Used water that carries waste from homes or factories.

अर्थ: अपशिष्ट जल

"The plant treats wastewater before release."

Biodiversity

Meaning: Variety of plants, animals and microorganisms in an area.

अर्थ: जैव विविधता

"Pollution harms river biodiversity."

Compensation

Meaning: Fair payment for work done.

अर्थ: पारिश्रमिक

"Fair compensation keeps workers motivated."

Discrimination

Meaning: Unfair treatment of people based on identity.

अर्थ: भेदभाव

"Discrimination at the workplace is illegal."

Workplace rights

Meaning: Legal protections and benefits for employees.

अर्थ: कार्यस्थल अधिकार

"Knowing workplace rights helps workers speak up."

Corporate Social Responsibility (CSR)

Meaning: Company’s duty to support society and environment.

अर्थ: कॉर्पोरेट सामाजिक उत्तरदायित्व (सीएसआर)

"The firm planted trees under its CSR program."

Mandated

Meaning: Required by law or authority.

अर्थ: अनिवार्य किया गया

"Large firms are mandated to spend on CSR."

Dividend (finance)

Meaning: Share of a company’s profit paid to shareholders.

अर्थ: लाभांश

"Shareholders received a 10% dividend this year."

Stock market

Meaning: Place where shares are bought and sold.

अर्थ: शेयर बाज़ार

"The company raised capital from the stock market."

Loan

Meaning: Money borrowed that must be repaid, usually with interest.

अर्थ: ऋण

"She took a bank loan to buy ovens."

Interest (banking)

Meaning: Extra money paid for using borrowed money.

अर्थ: ब्याज

"The bakery repays the loan with interest monthly."

Entrepreneur

Meaning: A person who starts and runs a business by taking risks.

अर्थ: उद्यमी

"An entrepreneur opened a food truck near school."

Startup

Meaning: A new, small company built around an idea.

अर्थ: स्टार्टअप/नवउद्यम

"Their startup makes eco‑friendly packaging."

Innovation

Meaning: Creating a new or improved product or method.

अर्थ: नवाचार

"Innovation turned waste plastic into tiles."

Vision (business)

Meaning: Clear long‑term idea of what to build or achieve.

अर्थ: दूरदर्शिता/दृष्टि

"Her vision is to make healthy food affordable."

Perseverance

Meaning: Continuing effort despite difficulties.

अर्थ: दृढ़ता/धैर्य

"Perseverance helped the owner through slow months."

Global Positioning System (GPS)

Meaning: Satellite‑based system to find exact locations.

अर्थ: वैश्विक स्थान‑निर्धारण प्रणाली (जीपीएस)

"Drivers use GPS to pick the shortest route."

Unified Payments Interface (UPI)

Meaning: Instant bank‑to‑bank digital payment system in India.

अर्थ: एकीकृत भुगतान इंटरफ़ेस (यूपीआई)

"We paid the vegetable seller by UPI."

NCERT Solutions Class 8 Social Science - Exploring Society India and Beyond Chapter 7 – Factors of Production

Chapter Introduction

Watch Video Lecture

Important Points

Practice MCQ Questions (60 questions)

Q1. Which of the following is NOT a traditional factor of production?

Q2. In economics, the term 'land' includes:

Q3. ‘Labour’ refers to:

Q4. ‘Human capital’ best describes:

Q5. Entrepreneurship primarily involves:

Q6. Capital in production includes:

Q7. Technology in production means:

Q8. Which statement about factors of production is TRUE?

Q9. A business choosing a location and arranging funds is mainly dealing with:

Q10. The output of agriculture is typically:

Q11. Education contributes to human capital by:

Q12. Training helps students by:

Q13. Good health improves productivity because:

Q14. Which is a facilitator of human capital mentioned in the chapter?

Q15. The concept of ‘kaizen’ from Japan refers to:

Q16. A noted trait in German work culture highlighted in the chapter is:

Q17. Adult literacy rate in India (2023, World Bank estimates) is approximately:

Q18. A possible impact of school drop‑out on future outcomes is:

Q19. A business lacking skilled workers may face:

Q20. ‘Demographic dividend’ refers to a situation with:

Q21. Which is a common initial source of capital for small businesses?

Q22. A bank loan usually involves:

Q23. Large companies often raise capital by:

Q24. Dividends are:

Q25. Capital assets include:

Q26. UPI (in examples of technology) helps by:

Q27. GPS can improve production by:

Q28. Robots in surgery illustrate technology used to:

Q29. Drones in agriculture can:

Q30. Pulleys and wheelbarrows represent:

Q31. An entrepreneur primarily:

Q32. Which is NOT a typical task of an entrepreneur?

Q33. A key lesson from J.R.D. Tata’s story is:

Q34. Entrepreneurship benefits society by:

Q35. Which personality trait helps entrepreneurs succeed?

Q36. ‘Pause Point’ example shows that starting a business needs:

Q37. A startup that converts crop waste to packaging is leveraging:

Q38. If a firm invests in staff upskilling, it is building:

Q39. Stock markets allow companies to:

Q40. A dividend is most closely linked to:

Q41. Mobile phone manufacturing typically requires:

Q42. A supply‑chain disruption can cause:

Q43. COVID‑19 highlighted that over‑reliance on distant inputs can:

Q44. Labour‑intensive activities are MOST likely in:

Q45. Capital‑intensive production is MOST likely in:

Q46. Combining factors efficiently means:

Q47. Improper factor mix usually leads to:

Q48. ‘First step’ before mass production in phones is:

Q49. Testing for quality and performance is done:

Q50. Distribution to retail stores happens:

Q51. Using natural resources responsibly means:

Q52. Untreated industrial effluents can:

Q53. E‑waste mishandling may release:

Q54. Fair compensation and safe conditions are:

Q55. Skill development investments by firms help:

Q56. Workplace rights include:

Q57. CSR in India (2014 law) mandates eligible companies to spend:

Q58. An example of CSR activity is:

Q59. Efficient use of land, labour and capital (as per Bibek Debroy’s idea) aims to:

Q60. Human capital is shaped by: