MCQ Questions for Class 9 Economics Chapter 1 The Story of Village Palampur MCQ with answers
1. What is the main production activity in the village of Palampur?
A) Small-scale manufacturing
B) Dairy
C) Transport
D) Farming
Answer: D) Farming
2. Which of the following is NOT an essential component for production?
A) Labour
B) Physical capital
C) Human capital
D) Technology
Answer: D) Technology
3. What are the natural resources required for production in Palampur?
A) Tools and machines
B) Raw materials and money
C) Water, forests, and minerals
D) Land and labour
Answer: C) Water, forests, and minerals
4. What is the term used for the raw materials used during the production process?
A) Human capital
B) Working capital
C) Physical capital
D) Natural capital
Answer: B) Working capital
5. Which of the following is NOT one of the factors of production?
A) Land
B) Labour
C) Physical capital
D) Knowledge and enterprise
Answer: D) Knowledge and enterprise
6. What is the role of knowledge and enterprise in production?
A) To combine land, labour, and physical capital
B) To provide working capital
C) To create raw materials
D) To generate electricity
Answer: A) To combine land, labour, and physical capital
7. What does the term “working capital” refer to?
A) Land and labour
B) Physical capital
C) Raw materials and money
D) Human capital
Answer: C) Raw materials and money
8. Which of the following is NOT a component of physical capital?
A) Tools
B) Machines
C) Buildings
D) Money
Answer: D) Money
9. What does the story of Palampur teach us about production?
A) The importance of transportation in villages
B) The role of education in farming
C) The different types of production activities in a village
D) The challenges of small-scale manufacturing
Answer: C) The different types of production activities in a village
10. What are some of the basic amenities available in Palampur?
A) Road, transport, and electricity
B) Schools and health centres
C) Irrigation facilities
D) All of the above
Answer: D) All of the above
11. What is the significance of land and other natural resources in production?
A) They provide the necessary workforce
B) They contribute to the working capital
C) They are essential for carrying out production activities
D) They determine the demand for goods and services
Answer: C) They are essential for carrying out production activities
12. What is the main constraint in raising farm production in Palampur?
A) Lack of irrigation facilities
B) Limited availability of labour
C) Fixed land area for cultivation
D) Poor quality of seeds
Answer: C) Fixed land area for cultivation
13. How many different crops can farmers in Palampur grow due to well-developed irrigation?
A) One
B) Two
C) Three
D) Four
Answer: C) Three
14. What farming method introduced high-yielding varieties of seeds for wheat and rice?
A) Green Revolution
B) Organic farming
C) Subsistence farming
D) Shifting cultivation
Answer: A) Green Revolution
15. What has happened to the natural resource base due to modern farming methods?
A) Increased soil fertility
B) Enhanced groundwater availability
C) Decreased soil fertility
D) Improved natural resource conservation
Answer: C) Decreased soil fertility
16. How is land distributed among the farmers of Palampur?
A) Equally among all families
B) Based on caste and religion
C) Small plots for all families
D) Large farmers own most of the land
Answer: D) Large farmers own most of the land
17. Who provides the labour for farming in Palampur?
A) Landless families
B) Medium and large farmers
C) Dalits
D) Government organizations
Answer: A) Landless families
18. How are farm labourers usually compensated for their work?
A) Ownership of crops
B) Monthly salary
C) Cash or in-kind payments
D) Profit-sharing agreements
Answer: C) Cash or in-kind payments
19. Where do small farmers usually borrow money from?
A) Large farmers
B) Government banks
C) Local cooperatives
D) Village moneylenders or traders
Answer: D) Village moneylenders or traders
20. Who supplies surplus wheat to the market in Palampur?
A) Small farmers
B) Medium and large farmers
C) Dairy farmers
D) Non-farming households
Answer: B) Medium and large farmers
21. Apart from agriculture, what other activity is common in Palampur?
A) Manufacturing
B) Fishing
C) Mining
D) Hunting
Answer: A) Manufacturing
22. Where is small-scale manufacturing carried out in Palampur?
A) Factories
B) Offices
C) Home or fields
D) Workshops
Answer: C) Home or fields
23. What kind of goods do shopkeepers in Palampur sell?
A) Agricultural equipment only
B) Wholesale products only
C) General household items
D) Industrial machinery
Answer: C) General household items
24. Which sector is considered a fast-developing one in Palampur?
A) Agriculture
B) Education
C) Healthcare
D) Transport
Answer: D) Transport
25. What do transport services in Palampur include?
A) Air travel only
B) Rickshaws and tongas
C) Train services
D) Water transport
Answer: B) Rickshaws and tongas