Which one of the following inputs is required in less quantity in case of non-farming activities ?
- A.Land
- B.Labour
- C.Capital
- D.Raw material
Correct answer
Explanation
The correct answer is A, Land. Farming needs large areas of land, while most non-farm work, such as a shop, a dairy, transport or small manufacturing, can be carried out on very little land.
Production needs four kinds of input: land and other natural resources, labour, physical capital such as tools, machines and raw material, and the knowledge to combine them. In a village economy land is fixed and scarce, so farming cannot absorb every new worker. Non-farm activities let people earn a living without owning much land; what they need most is some money as capital and a market for what they make. This is why the growth of non-farm work is seen as a way to relieve the pressure on land in rural India.
Option B is wrong because non-farm activities such as small manufacturing and transport still need labour. Option C is wrong because they need capital, often borrowed, to start. Option D is wrong because many of them, like making jaggery or weaving, depend on raw material.
Exam tip: Land is fixed; non-farm work needs little land but needs capital and a market.
Practice Questions
View allWith which of the following was the Bretton Woods System NOT associated?
- A.International Monetary Fund
- B.Economic recovery after the Second World War
- C.International Bank for Reconstruction and Development
- D.Establishment of a monetary system based on floating exchange rate
Show answer
Bretton Woods set up fixed, not floating, exchange rates. At the Bretton Woods Conference in New Hampshire, USA, in July 1944, 44 Allied nations agreed on a new post-war money order.
Read the full explanation →Which one of the following statements with regard to the National Rural Employment Guarantee Act, 2005 is correct ?
- A.It ensures 175 days of employment to needy persons in rural areas.
- B.It gives higher wages to women workers.
- C.People are generally given both skilled and unskilled jobs.
- D.This is implemented only in rural areas of India.
Show answer
As its name says, the Act guarantees work to households in rural areas; towns and cities are outside its scope.
Read the full explanation →A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as
- A.oligopoly
- B.imperfect competition
- C.monopolistic competition
- D.perfect competition
Show answer
Many sellers of an identical product, none of whom can change the price, is the definition of a perfectly competitive market.
Read the full explanation →Which one of the following approaches of human development was initially proposed by the International Labour Organisation (ILO) and emphasised on health, education, food, water supply, sanitation and housing?
- A.Welfare approach
- B.Basic needs approach
- C.Income approach
- D.Capability approach
Show answer
The International Labour Organisation put it forward in the 1970s, asking that every person first have the essentials of a decent life.
Read the full explanation →The Sukanya Samriddhi account for a girl child matures:
- A.Fifteen years from the date of opening
- B.Twenty-one years from the date of opening
- C.When the girl turns eighteen years of age
- D.After five years, like the National Savings Certificate
Show answer
The account is opened by a guardian in the name of a girl child before she completes ten years of age, deposits are made for the first fifteen years, and the account matures twenty-one years from the date it was opened; a part withdrawal is allowed for higher education after…
Read the full explanation →