MOUNTSION SCHOOL Session 2020-21 Class - IX Subject - Economics Note: All work to be done in a thin copy Assignment no-2 The story f Palampur continued ..... [Main Production Activities in the village] Farming is the main production activity in the village Palampur. Most of the people are dependent on farming for their livelihood. Non-farming activities such as dairy, small-scale manufacturing (e.g. activities of weavers and potters, etc.), transport, etc., are carried out on a limited scale. Production Definition - Production refers to the process of producing those goods and services that they wanted by the people. Organisation of Production The main aim of production is to produce goods and services, which require four essential things - 1. Land and other natural resources such as water, forests, minerals. 2. Labour 3. Physical Capital such as tools, machines, buildings, raw materials and money. The goal of the organization is to produce goods and services. Land , labour and capital are required for production. Natural resources fulfilled the requirements of land and water. For labour intensive industry, labour is required and for financial aid, capital is required. Physical capital are also required for production. Working Capital includes raw materials and money in hand and Fixed Capital includes tools, machines, buildings etc. Human Capital means that labour is also required for the selling purpose. Distribution of land in Palampur Types of land measurements: hectares, bigha , genital and cent. Here , Question arises ?? What are the main factors of production? Definitely , land, labour, physical capital and human capital. Another question is that, Tell me Machinery , work plants, equipments, new technology, buildings are the examples of which types of capital? Yes, fixed capital. Now , second requirement is labour Labour refers to all physical and mental work undertaken in the production process. It is of three types- Skilled labour Unskilled labour Semi- skilled labour Features of labour - (i) Labour is Perishable: It means labour cannot be stored. (ii) Labour sells his service not himself (iii) Labour is both the Beginning and the End of Production (iv) Labour creates Capital (v) Differences in the Efficiency of Labour. [Physical Capital] Items that come under physical capital- (a) Fixed capital - refers to the capital which is used to purchases fixed assests like factory building, land, machineries, tools, etc. which can put to repeated use over a long period of time. They do not get exhausted easily. (b) Working capital- refers to investments in current assests like raw materials, cash in hand, at bank, seeds, manure, etc. which are consumed within a period of one year. Knowledge and Enterprise There is a fourth requirement too. You will need knowledge and enterprise to be able to put together land, labour, and physical capital and produce an output either to use yourself or to sell in the market. these are called human capital. Answer the following- (i) What is fixed and working capital? (ii) Define production? (iii) What is the fourth requirement for the production of goods and services? (iv) Give an example of working capital. .