Samacheer Kalvi 7th Social Science Term 1 Economics Solutions Chapter 1 Pdf
Tamilnadu Board Samacheer Kalvi 7th Social Science Term 1 Economics Solutions Chapter 1: Tamilnadu State Board Solution Class 7 Social Science Term 1 Economics Chapter 1 – Production.
Samacheer Kalvi 7th Social Science Economics Solutions Chapter 1: Overview
Board |
Samacheer Kalvi |
Class |
7 |
Subject |
Social Science Economics |
Term |
1 |
Chapter Name |
Production |
Economics
Unit 1: Production
Multiple choice questions:
1.) Agriculture, forestry etc. Are the examples of:
A.) Primary production
B.) Secondary production
C.) Tertiary production
Ans: primary production.
2.) Clothing, engineering etc. Are the examples of:
A.) Tertiary production
B.) Secondary production
C.) Primary production
Ans: secondary production.
3.) Banking, insurance, education etc. Are the examples of:
A.) Primary production
B.) Secondary production
C.) Tertiary production
Ans: tertiary production.
4.) An entrepreneur is known as:
A.) Organizer
B.) Changing agent of the society
C.) Both
Ans: both.
Answer the following questions: (marks:1/ 2)
1.) What do you mean by production?
Ans: Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption.
2.) What is land?
Ans: Land is a natural resource or gift of nature which is provided freely to man. It includes several things such as land surface, air, water, minerals, forests, rivers etc. Thus, land includes all things that are not made by man.
3.) What is labor?
Ans: 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’.
4.) Who introduced the concept of ‘ division of labor’?
Ans: The concept ‘Division of Labour’ was introduced by Adam Smith in his book ‘An Inquiry into the Nature and Causes of the Wealth of Nations’.
5.) What is division of labor?
Ans: Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of a labour or a set of labourers, who are specialists in that particular process.
6.) Who is known as the father of economics?
Ans: Adam Smith is known as the father of Economics.
7.) What are the famous works of Adam Smith?
Ans: He wrote two classic works,”The Theory of Moral sentiments” in 1759,and ” An Inquiry into the Nature and Causes of the Wealth of Nations” in 1776.
8.) What is capital?
Ans: Capital is man made physical goods used to produce other goods and services. In economics, capital refers to that part of manmade wealth which is used for the further production of wealth.
9.) What is an entrepreneur?
Ans: An entrepreneur is a person who combines the different factors of production such as land, labor and capital in the right proportion and initiates the process of production and also bears the risk involved in it.
10.) Write down the characteristics of an entrepreneur?
Ans: An entrepreneur is a person who combines the different factors of production such as land, labor and capital in the right proportion and initiates the process of production. The Characteristics of Entrepreneur are:
- Identifying profitable investable opportunities
- Deciding the location of the production unit
- Making innovations
- Deciding the reward payment
- Taking risks and facing uncertainties
Answer the following questions:
1.) What is production? What are the types of production? (1+4)
Ans: Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption.
Types: There are mainly three types of production:
A.) Primary production: In primary production natural resources are directly used. Since agriculture is given prime importance, it is also referred to as agricultural sector production. Agriculture, forestry, fishing, mining and oil extraction are examples of primary production.
B.) Secondary Production: In the secondary production products are manufactured by using primary products as raw materials. Since industries are given prime importance, it is also referred to as industrial sector production. Manufacturing of cars, clothing, chemicals, engineering and building etc.. are examples to the secondary sector.
C.) Tertiary Production: Tertiary production is known as the services which are not visible rendered by the teachers, doctors etc., are to the economy. Banking, insurance, education, health and defence etc.. are examples to the service sector.
2.) What is production? What are the factors of production? (1+4)
Ans: Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption.
Factors of production:
Factors of production are known as inputs of production which are transformed into output or products. The main factors of production are:
A.) Primary factors of production:
- Land : Land is a natural resource or gift of nature which is provided freely to man. It includes several things such as land surface, air, water, minerals, forests, rivers etc.Thus, land includes all things that are not made by man.
- Labour: 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’. B. Secondary factors of production:
- Capital: Capital is man made physical goods used to produce other goods and services. In economics, capital refers to that part of manmade wealth which is used for the further production of wealth.
- Entrepreneur or organisation: An entrepreneur is a person who combines the different factors of production such as land, labor and capital in the right proportion and initiates the process of production and also bears the risk involved in it.The entrepreneur is also called ‘Organizer’. In modern times, an entrepreneur is called ‘the changing agent of society’.
3.) Write down the characteristics of land?
Ans: Land is a natural resource or gift of nature which is provided freely to man. It includes several things such as land surface, air, water, minerals, forests, rivers etc. Thus, land includes all things that are not made by man.
Characteristics of Land:
- Land is a Free Gift of Nature: Man has to make efforts in order to acquire other factors of production. But to acquire land no human efforts are needed. Land is not the outcome of human labour. Rather, it existed even long before the evolution of man.
- Land is fixed in supply: The total quantity of land does not undergo any change. It is limited and cannot be increased or decreased with human efforts. No alteration can be made in the surface area of land.
- Land is imperishable: All man-made things are declining and these may even go out of existence. But land is imperishable. Thus it cannot go out of existence.
- Land is a Primary Factor of Production: In any kind of production process, we have to start with land. For example, it helps to provide raw materials for industries and to produce crops.
- Land is Immovable: It cannot be transported from one place to another. For instance, no portion of India’s surface can be transported to some other country.
- Land has some Original Indestructible Powers: 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.
- Land Differs in Fertility: Fertility of land differs on different pieces of land. One piece of land may produce more and the other may be less. As a gift of nature, the initial supply price of land is zero. However, when used in production, it becomes scarce. Therefore, it fetches a price accordingly.
4.) What is labor? What are the characteristics of labor? (2+3)
Ans: 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’.
Characteristics:
- Labour is more declining 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 it is lost, it is lost forever.
- Labour is an active factor of production. Neither land nor capital can yield much without labour.
- Labour is not homogeneous. Skill and dexterity varies 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.
- Individual labour has 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.
5) What is division of labour? What are the merits and demerits of labour? (1+2+2)
Ans: Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of a labour or a set of labourers, who are specialists in that particular process.
Merits of division of labour :
- It improves efficiency of labour when labour repeats doing the same tasks.
- It leads to the use of modern machinery in production, resulting in inventions. Ex. More’s Telegraphic Codes.
- Time and raw materials are used very efficiently.
Demerits of division of labour:
- Repetition of the same task makes labourer to feel that the work is monotonous and stale. It kills the humanity in him.
- Narrow specialization reduces the possibility of labourer to find alternative avenues of employment. This results in unemployment.
- Reduce the growth of handicrafts and the worker loses the satisfaction of having made a commodity in full.
6.) What is capital? What are the types of capital? Write down the characteristics of capital?
Ans: Capital is man made physical goods used to produce other goods and services. In economics, capital refers to that part of manmade wealth which is used for the further production of wealth.
Forms or types of capital:
- Physical Capital or Material Resources:Such as, Machinery, tools, buildings, etc.
- Money capital or Monetary resources: Example, Bank deposits, shares and securities, etc.
- Human capital or Human Resources: Such as , Investments in education, training and health
Characteristics of Capital:
- Capital is a passive factor of production
- Capital is man-made
- Capital is not an indispensable factor of production
- Capital has the highest mobility
- Capital is more flexibility
- Capital is productive
- Capital Lasts Long
- Capital involves present sacrifice to get future benefits.
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