The Story of Village Palampur Test - 5

Few farmers are unable to make their living from their land despite improved irrigation and modern farming method because they hold small plot of land.

The term 'land' generally refers to the surface of the earth. But in economics, it includes all that, which is available free of cost from 'nature' as a gift to human being. Land stands for all nature, living and non-living which is used by man in production.

One-fourth  means 25% of the population of Palampur is engaged in non-farming activities like shop-keeping, dairy, manufacturing and transport.
Shop-keepers buy goods from wholesalers in Shahpur and sell them in Palampur. Milk from the dairies in Palampur is transported daily to Raiganj. Some traders from Shahpur have set up collection centres and chilling plants at Raiganj, from where milk is supplied to other towns and cities.

All factors of production generate reward. Since members of family do not generate reward such as earning wages, when involved in household activities, they are not regarded as labour.

Dairy farming is a class of agriculture for long-term production of milk, which is processed (either on the farm or at a dairy plant, either of which may be called a dairy) for eventual sale of a dairy product. Although any mammal can produce milk, commercial dairy farms are typically one-species enterprises. In developed countries, dairy farms typically consist of high producing dairy cows. Other species used in commercial dairy farming include goats, sheep, and camels. In Italy, donkey dairies are growing in popularity to produce an alternative milk source for human infants.

Organization is a factor of production which involves coordination of other factors of production. The person who coordinates the activities is called organizer or entrepreneur.

None of the above the statements are correct. Rewards are associated with all the factors of production. Rent is the reward for land while all natural resources form part of land as a factor of production.

Factors of production are the inputs that are essential to produce goods and services. Land, labor, capital and organization form these primary factors. Capital includes the capital investment as well as the machinery and other capital drawing entities.

A factor of production may be defined as that good or service which is mandatory for production. A factor of manufacture is indispensable for manufacture because, without it, no production is possible.

It is normal to quality the procedure of production to three factors, land, labour and capital, to which we add organisation. The factors of manufacture are land, labour, capital, and entrepreneurship. They are the inputs needed for supply.

Thus, the correct option is D.