Question

Read the sources given below and answer the questions that follow-
Source A: Organisation of Production Every production is organised by combining land, labour, physical capital and human capital, which are known as factors of production. As we read through the story of Palampur, we will learn more about the first three factors of production. For convenience, we will refer to the physical capital as the capital in this chapter.

Source B: Land is Fixed 75 per cent of the people who are working are dependent on farming for their livelihood. They could be farmers or farm laborers. The well-being of these people is closely related to production on the farms. But remember that there is a basic constraint in raising farm production. Land area under cultivation is practically fixed. Since 1960 in Palampur, there has been no expansion in land area.

Source C: The Capital Needed in Farming Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the
loan.
Questions-
a. In what way production is a combination of various factors?
b. To what extent do you think that there is a constraint in raising farm production? c. To what extent small farmers are exploited due to their lack of capital?

Answer 1

Answer:

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