Production Notes 7th Social Science
7th Social Science Lesson 8 Notes in English
8. Production
1. What is Production?
Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption (the output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.
2. Define Utility:
Utility means want satisfying power of a product. Utilities are in the nature of form utility, time utility and place utility.
3. What are the two Main activities of Economy?
There are two main activities in an economy, production and consumption. Similarly there are two kinds of people, producers and consumers.
4. What are the different types of Utility?
Utilities are in the nature of form utility, time utility and place utility.
5. Explain the Indian Economy:
Indian Economy is a Mixed Economy. Private and Public Sector are existing together.
7th Social Book Back Questions
6. Types of Production
There are three types of production
- Primary production
- Secondary Production
- Tertiary or Service Production
7. What is a Primary production?
- Primary production is carried out by ‘extractive’ industries like agriculture, forestry, fishing, mining and oil extraction.
- These industries are engaged in such activities as extracting the gifts of nature from the earth’s surface, from beneath the earth’s surface and from the oceans.
- Agriculture
8. What are Secondary Production?
This includes production in manufacturing industry, turning out semi-finished and finished goods from raw materials and intermediate goods, conversion of flour into bread or iron ore into finished steel.
9. What are Tertiary Production?
- Industries in the tertiary sector produce all those services which enable the finished goods to be put in the hands of consumers.
- In fact, these services are supplied to the firms in all types of industry and directly to consumers.
- Examples cover distributive traders, banking, insurance, transport and communications. Government services, such as law, administration, education, health and defence, are also included.
10. Which sector contributed more to the GDP?
The most to the Gross Domestic Product of our country is contributed by the tertiary sector.
11. What are the Factors of Production?
- The inputs are classified and referred to as land, labour, and capital. Collectively the inputs are called factors of production.
- When the factors of production are combined in order to produce something,a fourth factor is required. Goods and services do not produce themselves but need some conscious thought process in order to plan and implement manufacture.
- This thought process is often called Entrepreneurship and Organization.
12. How Factors of production classified?
1. Primary Factors and 2. Derived Factors.
- Primary factors are land and labour. These are naturally given and without them no goods can be produced.
- Derived factors are Capital and Organization. These derived factors, when combined with the primary factors of production, raise total production.
13. Explain Land factor:
- Land as a factor of production refers to all those natural resources or gifts of nature which are provided free to man.
- It includes within itself several things such as land surface, air, water, minerals, forests, rivers, lakes, seas, mountain, climate, and weather.
- Thus, land includes all things that are not made by man.
14. What are the Characteristics of Land?
- Land is a Free Gift of Nature
- Land is fixed in supply
- Land is imperishable
- Land is a Primary Factor of Production
- Land is Immovable
- Land has some
- Land Differs
15. Adamsmith is known as Father of Economics and his Economics is wealth Economics. He wrote two classic works, “The Theory of Moral sentiments(1759)”,and “An inquiry into the nature and causes of the wealth of Nations (1776)”.
16. Define 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’
17. Characteristics of Labour:
- Labour is more perishable than other factors of production
- Labour is an active factor of production.
- Labour is not homogeneous.
- Labour cannot be separated from the labourer.
- Labour is mobile
18. Division of Labour:
- The concept ‘Division of Labour’ was introduced by the Adam Smith in his book ‘An enquiry into the nature and causes of wealth of nations’.
- 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.
19. Why labour is more perishable?
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 time is lost, it is lost forever.
20. What are the Merits of division of labour?
- It improves efficiency of labour when labour repeats doing the same tasks.
- Facilities the use of machinery in production, resulting in inventions. Ex. More’s Telegraphic Codes.
- Time and Materials are put to the best and most efficient use.
21. What are the Demerits of division of labour?
- Repetition of the same task makes labour to feel that the work is monotonous and stale. It kills the humanity in him.
- Narrow specialization reduces the possibility of labour to find alternative avenues of employment. This results in increased unemployment.
- Reduce the growth of handicrafts and the worker loses the satisfaction of having made a commodity in full.
22. What is a Capital?
Capital is the man made physical goods used to produce other goods and services. In the ordinary language, capital means money. In economics, capital refers to that part of man-made wealth which is used for the further production of wealth.
23. Explain Marshall thought on Capital:
All wealth is not capital but all capital is wealth. According to Marshall, ’Capital consists of those kinds of wealth other than free gifts of nature, which yield income’.
24. What are the different Forms of capital?
- Physical Capital or Material Resources Ex. Machinery, tools, buildings, etc.
- Money capital or Monetary resources Ex. Bank deposits, shares and securities, etc.
- Human capital or Human Resources Ex. Investments in education, training and health
25. What are the 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 productive
- Capital lasts over time
- Capital involves present sacrifice to get future benefits
26. Who is an Entrepreneur?
- An entrepreneur is a person who combines the different factors of production (land, labour 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 the society’.
27. What are the Characteristics of Entrepreneur?
- Identifying profitable investible opportunities
- Deciding the location of the production unit
- Making innovations
- Deciding the reward payment
- Taking risks and facing uncertainties
