The Story of Village Palampur Test - 3

Labour is the most abundant factor of production in countries like India.

The resources used by the businesses to produce goods and services are called the factors of production. These can be durable or non-durable. Non-durable factors are the ones that are over once they are consumed. Durable factors are the ones which last for a long time. The factors of production are land, labor, capital, entrepreneur.

Production is the transformation of inputs into outputs. When goods are produced, there is a creation of value in them. And when they are able to satisfy a want it is said to have utility. Thus production is the creation of value and utility and the goods and services produced have the ability to satisfy a want. 

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.

Loss is not a factor of production since it does not participate in production mechanism. It does not increase the productivity of an economy. It is an outcome which firms may face in short rum production function.

Light of the sun cannot be accepted as a factor of production. Factors of production are Land, Labour, Capital, Enterprise / entrepreneur.

Workers engaged in non-farm activities in rural areas on an average are 24%. Estimates suggest that 92% of Indian labourers are engaged in the unorganised sector while the organised segment constitutes the remaining 8%. Further, it can be noted that 95% of female workers and 89% of male workers are engaged in the unorganised segment in India. 

Rural non-farm activities include value chain activities, such as agro-processing, transport, distribution, marketing, and retail, as well as tourism, manufacturing, construction and mining, plus self-employment activities.

Thus, the correct option is D.

In Palampur, farming is the main activity as 75% of population work for farm labourers. earn their living through farming. Unfortunately, not all people engaged in farming have sufficient land for cultivation.
So it is necessary to increase area under cultivation.

For the expansion of non-farm activities, we need a market. Markets are places where goods and services produced as a result of non-farm activities can be sold. As more villages get connected to towns and cities through good roads, transport and communications, opportunities for non-farm activities increase in the rural areas.
Thus, the correct option is D.