FACTORS OF PRODUCTION NCERT QUESTIONS AND ANSWERS
Q. How are the factors of production different from each other? What are the difficulties you faced in classifying the factors of production in the exercise given in-text?
Ans – The factors of production are the resources used to produce goods and services. They are traditionally classified into four main categories, each with distinct characteristics:
a) Land
b) Labour
c) Capital
d) Entrepreneurship
Overlapping Categories: For example, is a tractor land or capital? It’s a man-made tool, so it should be capital — but since it’s used on land, the confusion arises.
Modern or Digital Items: New items like software, intellectual property, or AI systems are hard to classify. Are they capital or a new factor entirely?
Each factor of production is different in source, role, and reward. The difficulty in classifying them comes from overlaps, modern economic complexity, and unclear boundaries between categories. The exercise likely revealed how theory and real-world situations can differ.
Q. How does human capital differ from physical capital?
Ans – Human capital and physical capital are both important resources in production, but they differ in several key ways:
Human Capital- The knowledge, skills, experience, and health of people that make them productive.
Physical Capital – The man-made tools, machines, buildings, and equipment used in production.
| Human Capital | Physical Capital |
| skills, Knowledge, health of people | tools, machine, buildings |
| Intangible | Tangible (vastawik) |
| Education, training, health | investment in equipment or infrastructure |
| It can’t be transfered | It can be transfered |
| ex, teacher | ex, A school building |
Both types of capital are essential for economic growth, but they contribute in different ways — one through people’s abilities, the other through tools and equipment.
Q. How do you think technology is changing how people develop their skills and knowledge?
Ana – Technology is changing how people develop their skills and knowledge by making learning easier and more reachable. Such as
A) Internet
B) SWAYAM Portal (offer free courses)
C) Mobile Apps
Thus, technology is making learning easier.
Q. A skill is something you learn and practice to get better. It helps you do things well, like playing a sport, creative writing, solving math problems, cooking or even communicating well with people. If you could learn one skill today, what would it be and why?
Ans – Do it Yourself.
Q. Do you think entrepreneurship is the driving force of production? why or why not?
Ans – Yes, entrepreneurship is the driving force of production because it brings all the factors of production together such as labour, land, capital and technology to produce goods and services.
The following things are listed below:-
A) They take risk and bring new ideas to solve problems
B) They help create jobs and employment
C) They help the Economy to grow
Q. Can technology replace other factors like labour? Is this good or bad? support your answer with the help of an example.
Ans – Technology can replace labour, sometimes when the task are dangerous. For example in iron Smelting factory it could be dangerous for the Humans when working near the Hot Melting iron.
A) It could be good because it makes work faster.
B) It could be bad because people lose jobs.
Q. How do education and skill training affect human capital? Can they substitute for each other, or do they complement each other?
Ans – Education and Skill training improve human capital by helping people attaint knowledge and understand how to do things better. Education helps to make our base strong and skills helps us to learn new things.
They do not substitute each other instead they complement each other. For example, A medical technicians needs both education and skills to perform the task.
Thus, When people have both education and skills they perform their task more efficiently.
Q. Imagine you want to start a business that produces steel water bottles. What kind of inputs are needed? How would you obtain them? Suppose one of the factors is missing: what happens to your business operations?
Ans –