Q. Which of the following is a fixed capital?
A). Raw materials
B). Tools and machines
C). Labour
D). Money
Answer: B). Tools and machines
Explanation: Fixed capital includes tools, machinery, and buildings used for years.
Q. Working capital refers to—
A). Tools and machines
B). Money, raw materials used in production
C). Land and buildings
D). Labour used on the field
Answer: B). Money, raw materials used in production
Explanation: Working capital includes money, seeds, fertilizers—items used up during production.
Q. Dug wells and tube wells are examples of—
A). Working capital
B). Fixed capital
C). Labour
D). Raw material
Answer: B). Fixed capital
Explanation: These are long-term assets used for irrigation.
Q. Who brings together land, labour, and capital?
A). Fixed Capital
B). Working Capital
C). Human Capital
D). Machines
Answer: C). Human Capital
Explanation: The entrepreneur (Human Capital) takes decisions and coordinates all factors of production.
Q. Multiple cropping means—
A). Growing one crop at a time
B). Growing more than one crop on the same field in a year
C). Growing crops and rearing animals together
D). Growing only cash crops
Answer: B). Growing more than one crop on the same field in a year
Explanation: Multiple cropping increases farm productivity.
Q. Which crop is grown during the rainy season in Palampur?
A). Wheat
B). Potato
C). Jowar and bajra
D). Sugarcane
Answer: C). Jowar and bajra
Explanation: Jowar and bajra are grown during monsoon.
Q. Which crop is grown throughout the year in Palampur?
A). Wheat
B). Sugarcane
C). Rice
D). Potato
Answer: B). Sugarcane
Explanation: Sugarcane is a long-duration crop harvested once a year
Q. Which is a feature of traditional farming?
A). Use of HYV seeds
B). Use of chemical fertilizers
C). Use of bullocks for ploughing
D). Heavy use of machinery
Answer: C). Use of bullocks for ploughing
Explanation: Traditional farming depends on animals and manual labour.
Q. Green Revolution in Palampur led to—
A). Less production
B). More production due to HYV seeds
C). Decrease in irrigation facilities
D). All of the above
Answer: B). More production due to HYV seeds
Explanation: HYV seeds increased food grain production.
Q. Which requirement increased with the use of HYV seeds?
A). Less labour
B). Less water
C). More fertilizers and pesticides
D). No capital requirement
Answer: C). More fertilizers and pesticides
Explanation: HYV seeds require chemical fertilizers and pesticides.
Q. The major advantage of modern farming is—
A). Less capital needed
B). More production from the same land
C). Reduction in irrigation
D). Less use of electricity
Answer: B). More production from the same land
Explanation: Modern farming aims to increase productivity.
Q. Which drawback is associated with modern farming?
A). Soil degradation
B). Increase in land
C). No fertilizers needed
D). More biodiversity
Answer: Soil degradation
Explanation: Excessive chemical use harms soil fertility.
Q. Which is a non-farm activity in Palampur?
A). Potato cultivation
B). Dairy
C). Wheat cultivation
D). Sugarcane planting
Answer: B). Dairy
Explanation: Dairy is an important non-farm activity.
Q. Why do small farmers borrow money?
A). To buy luxury goods
B). To invest in machines
C). To arrange for working capital
D). To buy cars
Answer: C). To arrange for working capital
Explanation: Small farmers lack savings, so they borrow for seeds, fertilizers, etc.
Q. Landless farmers earn their livelihood mainly through—
A). Farming their own fields
B). Working as agricultural labourers
C). Owning industries
D). Trading
Answer: B). Working as agricultural labourers
Explanation: Landless farmers work on others’ farms for wages.
Q. From whom do small farmers usually borrow money?
A). Banks
B). Teachers
C). Large farmers or moneylenders
D). Government offices
Answer: C). Large farmers or moneylenders
Explanation: Banks often refuse loans, so they depend on moneylenders.
Q. Which is a reason for the shift to non-farm activities?
A). Increase in land area
B). Lack of opportunities in farming
C). High profits in farming
D). Abundant capital
Answer: B). Lack of opportunities in farming
Explanation: Limited land forces people to seek non-farm jobs.