Short and Long Answer Questions: Factors of Production | Social Science Class 8 - New NCERT PDF Download

Q1. What are the four main factors of production, and how do they contribute to creating goods and services?
Ans: The four main factors of production are land, labour, capital, and entrepreneurship. Land includes natural resources like soil, water, and minerals used in production. Labour is the physical and mental effort of people, such as farmers or teachers, creating goods and services. Capital involves money and tools like machinery or factories needed for production. Entrepreneurship combines these factors, with entrepreneurs taking risks to innovate and create new products, benefiting society and creating jobs.

Q2. How does education and training enhance human capital in production?
Ans: Education and training enhance human capital by equipping individuals with knowledge and practical skills for production. Education, from basic literacy to specialized fields like engineering, prepares people to solve real-world problems. Training, such as learning safety rules or observing construction sites, helps apply knowledge practically. These improve the quality and efficiency of labour, enabling workers to excel in their careers and contribute effectively to producing goods and services.

Q3. Why is healthcare important for improving labour productivity?
Ans: Healthcare is crucial for improving labour productivity as it ensures workers are physically and mentally fit. Healthy children attend school regularly, supporting better learning and brain development. Healthy workers perform efficiently, work faster, and remain creative without frequent absences due to illness. Good health enhances overall productivity, allowing individuals to contribute effectively to production processes and support the creation of goods and services needed by society.

Q4. What is the role of technology in the production process?
Ans: Technology enhances the production process by applying scientific knowledge to make work faster and more efficient. It includes traditional tools like pulleys and modern innovations like UPI, GPS, or drones for farming. Technology reduces resource use, improves productivity, and creates new opportunities, such as online learning via SWAYAM or job access through the National Career Service. It complements other factors of production, enabling businesses to produce more effectively.

Q5. How does entrepreneurship drive the production of goods and services?
Ans: Entrepreneurship drives production by combining land, labour, and capital to create innovative goods and services. Entrepreneurs identify problems, develop solutions, and take risks by investing time and money. They make key decisions, coordinate resources, and bring new products to market, creating jobs and benefiting society. For example, J.R.D. Tata’s vision led to Tata Airlines, later Air India, showcasing how entrepreneurship fuels economic and social progress.

Q6. What is meant by human capital, and how does it differ from labour?
Ans: Human capital refers to the knowledge, skills, abilities, and expertise that enhance a person’s productivity in work. It differs from labour, which is the physical and mental effort used in production, like a farmer’s work. Human capital includes specialized skills, such as a scientist’s expertise or a chef’s recipes, improving labour’s efficiency and quality. It requires education, training, and dedication to make work more effective and valuable.

Q7. How do cultural influences like Japan’s kaizen contribute to production?
Ans: Cultural influences like Japan’s kaizen, a 1940s concept of continuous improvement, enhance production by encouraging better work practices. Kaizen promotes a culture of hard work and constant skill refinement, raising productivity and living standards. Similarly, Germany’s work ethic, valuing punctuality and quality, strengthens human capital, making it a leader in technology and manufacturing. These cultural qualities improve efficiency, innovation, and overall economic growth in production processes.

Q8. What are the responsibilities of businesses towards natural resources in production?
Ans: Businesses must use natural resources like land, water, and minerals responsibly to avoid harm to the environment. Overuse, such as polluting rivers or unrecycled smartphones, can damage ecosystems. They should reduce waste and pollution, ensuring resources meet current needs without compromising future generations. Through Corporate Social Responsibility (CSR), businesses must adopt sustainable practices, like wastewater recycling, to protect nature while producing goods and services.

Q9. How does India’s ancient skill heritage influence modern production?
Ans: India’s ancient skill heritage, rooted in traditions like work as worship and Shilpa Shastras, influences modern production by emphasizing precision and skill. Ancient practices, such as treating tools as sacred during Shastra Puja or following detailed design guidelines in sculptures and architecture, promote excellence. These traditions inspire modern craftsmanship, blending art and knowledge to create high-quality products, while encouraging skill development for contemporary jobs.

Q10. Why is India’s young population considered a demographic dividend for production?
Ans: India’s young population, with 65% under 35 as per the Economic Survey of India 2024, is a demographic dividend because it provides a large, productive workforce. With fewer dependents, young workers can drive economic growth by contributing to production. However, this requires quality education, health, and skills training to ensure they are competitive. A skilled youth population boosts businesses, creates jobs, and improves living standards through increased productivity.

Q11. Explain how the factors of production are interconnected in the production process, with an example.
Ans: The factors of production—land, labour, capital, entrepreneurship, and technology—are interconnected, complementing each other to create goods and services. Each factor’s proportion varies by product, but their absence or misuse halts production.

• Interconnection: Land provides natural resources, labour applies human effort, capital supplies tools and funds, entrepreneurship coordinates these, and technology enhances efficiency. For example, in mobile phone manufacturing, land supplies minerals, labour assembles parts, capital funds factories, entrepreneurship drives innovation, and technology enables advanced production techniques.
• Impact of Disruption: Supply chain issues, like during COVID-19, show that missing one factor, such as imported materials, stops production.
• Human Role: Engineers and managers use skills to design and improve processes, ensuring all factors work together effectively.

This synergy ensures efficient production, as seen in India’s mobile phone industry, the world’s second-largest in 2025.

Q12. Describe the role of J.R.D. Tata as an entrepreneur and his contributions to Indian production.
Ans: J.R.D. Tata, born in 1904, was a visionary entrepreneur who significantly shaped Indian production as head of the Tata Group. His entrepreneurial contributions transformed industries and society.

• Vision and Innovation: He founded Tata Airlines in 1932, later Air India, introducing India’s first airline. His innovative ideas expanded the Tata Group into steel, cars, power, and chemicals, driving industrial growth.
• Social Responsibility: J.R.D. believed businesses should serve society, ensuring good working conditions and fair treatment for workers, setting a model for ethical production.
• Legacy: His honesty and hard work earned him the Bharat Ratna in 1992, reflecting his contributions to India’s economic and social progress.

J.R.D. Tata’s entrepreneurship combined resources effectively, creating jobs and advancing India’s industrial landscape.

Q13. Discuss the role of technology in enhancing production and providing opportunities, with examples.
Ans: Technology enhances production by applying scientific knowledge to improve efficiency and create opportunities. It reduces resource use, speeds up processes, and opens new avenues for education and jobs.

• Production Efficiency: Technology, like drones for fertilizer spraying or robots in surgeries, increases output with fewer resources. For example, UPI enables fast payments, streamlining business transactions.
• Educational Opportunities: Platforms like SWAYAM offer free online courses in subjects like robotics, enabling flexible learning for students and workers, enhancing skills for production.
• Job Opportunities: The National Career Service (NCS) connects people to jobs in sectors like plumbing or accounting, removing geographical barriers and boosting employment.
• Impact: By replacing older methods (e.g., email vs. letters) and complementing traditional tools, technology drives innovation and economic growth.

Technology thus transforms production and empowers individuals with knowledge and job access.

Q14. Explain the challenges to human capital in India and how they can be addressed.
Ans: India faces challenges in building human capital, crucial for effective production, despite progress since independence. Addressing these challenges is essential for economic growth.

• Challenges: India’s literacy rate in 2023 was 85% for males and 70% for females, indicating gaps in education access. Modern jobs require new skills, but many lack quality education, training, and healthcare to stay competitive.
• Solutions: Providing quality education and training, like SWAYAM’s online courses, equips people with relevant skills. Improving healthcare ensures a healthy, productive workforce. Encouraging a culture of continuous learning, inspired by practices like Japan’s kaizen, enhances skills.
• Impact: With 65% of India’s population under 35 (Economic Survey 2024), investing in education, health, and training can harness the demographic dividend, boosting productivity and economic development.

These efforts strengthen human capital, enabling India to meet modern production demands.

Q15. Describe the responsibilities of businesses towards workers and society in the production process.
Ans: Businesses have significant responsibilities towards workers and society in the production process to ensure ethical and sustainable practices.

• Towards Workers: Businesses must provide fair pay, safe working conditions, and benefits like healthcare or paid leave, as mandated by labour laws. Investing in training and education helps workers gain skills to stay competitive, enhancing productivity and job satisfaction.
• Towards Society: Through Corporate Social Responsibility (CSR), businesses should support local communities and reduce environmental harm. India’s 2014 CSR law requires companies to invest 2% of profits in social initiatives, setting a global standard.
• Environmental Responsibility: Businesses must minimize pollution and waste, such as through wastewater recycling, to protect natural resources for future generations.

By fulfilling these responsibilities, businesses contribute to societal welfare, environmental sustainability, and ethical production, aligning with India’s commitment to responsible business practices.