Question

Match the following. 1. Small farmers A. Non farm activity. 2. Labour B. Fixed Capital 3. Dairy C.Borrow money to arrange for the capital 4. Machines D. Most abundant factor of production

Answer 1

1) Small farmers - Borrow money to arrange for the capital

2) Labour - Most abundant factor of production

3) Dairy - Non farm activity

4) Machines - Fixed capital

Answer 2

The matched answers are as follows:

1)Small farmers - Borrow money to arrange for the capital.

• Small farmers do not have adequate amount of money.
• Small farmers generally borrow money to assemble the capital for their farming.
• They borrow it from large farmers, village lenders or traders.

2) Labour - Most abundant factor of production.

• Amongst the three factors of production, we found that labour is the most plentiful factor of production.
• There are many people who are ready to work as farm labourers in the villages, whereas the chances of work are limited.

3) Dairy - Non farm activity.

• The procedures and activities which take place in a farm are called farming and the ones which don’t take place in a farm are called non-farming activities.
• In dairy farming, the cows and the buffalos are fed grains like Bajra and Jowar along with grass.
• The milk which is gained is then traded with nearby traders.
• This milk is then transported and sold to large companies which incur conveyance costs.

4) Machines - Fixed capital.

The tools and machines that are used for production over several years before being discarded are known as fixed capital.

The above is the explanation for the matchings.

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