Chapter Exam

Chapter-7 Factors of Production — Online MCQ Test

Q: Which of the following is NOT a factor of production?

Answer: C. Money — The four factors of production are land, labour, capital, and entrepreneurship. Money is a financial tool, not a factor of production itself.

Q: Analyze this scenario: A factory owner has land, machines, and workers but no money to buy raw materials. What factor of production is lacking?

Answer: C. Working capital — The scenario shows lack of working capital, which is the money needed for short-term operations like purchasing raw materials. All other factors are present.

SOCIAL · Grade 8 · CBSE(NCERT)

Practice Chapter-7 Factors of Production with a free chapter-wise online MCQ test for CBSE(NCERT) Grade 8 SOCIAL. This chapter covers: land - labour - capital - entrepreneurship - economic inputs - resource allocation - production - wealth generation. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter-7 Factors of Production — Important Questions & Answers (FAQ)

Frequently asked questions from CBSE(NCERT) Grade 8 SOCIAL — Chapter-7 Factors of Production, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which of the following is NOT a factor of production?

A. Land
B. Labour
C. Money ✓
D. Capital

Answer: C. Money
The four factors of production are land, labour, capital, and entrepreneurship. Money is a financial tool, not a factor of production itself.

What does 'land' refer to in economics?

A. Only agricultural fields
B. All natural resources including soil, water, minerals, and forests ✓
C. Urban areas only
D. Government-owned property

Answer: B. All natural resources including soil, water, minerals, and forests
In economics, 'land' encompasses all natural resources including soil, water, minerals, forests, and other gifts of nature available for production.

In a textile factory, which of the following represents labour?

A. Cotton plants in the field
B. Spinning machines
C. Workers operating the machines and spinning thread ✓
D. The factory building

Answer: C. Workers operating the machines and spinning thread
Labour is the human effort and work. Workers operating machines and performing tasks represent the labour factor in the textile production process.

Analyze this scenario: A factory owner has land, machines, and workers but no money to buy raw materials. What factor of production is lacking?

A. Land
B. Labour
C. Working capital ✓
D. Entrepreneurship

Answer: C. Working capital
The scenario shows lack of working capital, which is the money needed for short-term operations like purchasing raw materials. All other factors are present.

A government constructs a dam for irrigation. Which factors of production does this project involve, and why is it economically important?

A. Only land; it just adds to natural resources
B. Capital (construction), labour (workers), and land (water resources) that enhance agricultural productivity and wealth generation ✓
C. Only labour; workers build the dam
D. Entrepreneurship; the government manages it

Answer: B. Capital (construction), labour (workers), and land (water resources) that enhance agricultural productivity and wealth generation
A dam project requires capital investment (construction cost), labour (workers), and develops land resources (water), which together increase production capacity and economic growth.