CBSE Class 8 Social Science Chapter 07 Factors Of Production MCQs Set 01

Social Science Objective Questions and Answers: Chapter 07 Factors Of Production

Review structured MCQ sets for Class 8 Social Science Chapter 07 Factors Of Production. Built according to official CBSE guidelines, these downloadable questions support daily revision and core concept reinforcement.

Download Chapter 07 Factors Of Production MCQs with Answers

Access the complete set of multiple-choice questions for Chapter 07 Factors Of Production below. This focused format allows students to isolate specific topics for thorough review and uninterrupted practice alongside official CBSE textbooks.

Question: According to the chapter, which of the following best describes what 'land' encompasses in economics?
A. Only geographical land area
B. Geographical land plus natural resources like soil, forests, water, minerals, and natural gas
C. Only minerals and oil reserves
D. Agricultural fields and farming areas
Show Answer & Explanation

Answer: (B) Geographical land plus natural resources like soil, forests, water, minerals, and natural gas

Explanation:
The chapter explicitly states that the word 'land' in economics encompasses not only geographical land but also natural resources like soil, forests, water, air, sunlight, minerals, oil, and natural gas.

Question: Ratna's restaurant Pause Point required her to organize multiple inputs when starting her business. Which of the following was NOT mentioned as something she had to do?
A. Choose a location for the restaurant
B. Organise money for rent and equipment
C. Hire staff members
D. Obtain government certification for all her recipes
Show Answer & Explanation

Answer: (D) Obtain government certification for all her recipes

Explanation:
The chapter states that Ratna had to choose a location, organise money for rent and equipment, and hire staff. Obtaining government certification for recipes is not mentioned in her startup process.

Question: How does human capital differ from labour in the context of production?
A. Labour is physical effort while human capital is mental effort only
B. Labour refers to basic physical and mental effort, while human capital includes specialised skills, knowledge, and expertise that make labour more productive
C. Human capital is only relevant for office jobs
D. Labour and human capital are identical terms used interchangeably
Show Answer & Explanation

Answer: (B) Labour refers to basic physical and mental effort, while human capital includes specialised skills, knowledge, and expertise that make labour more productive

Explanation:
• Labour = physical and mental effort used in production
• Human capital = specialised skills, knowledge, abilities, and expertise that enhance the quality and efficiency of that labour
• Human capital makes workers more productive beyond just their basic effort.

Question: In the context of the chapter, what does 'kaizen' represent?
A. A type of machinery used in factories
B. A Japanese concept of continuous improvement in work practices
C. A method of calculating production costs
D. An ancient Indian technique for craftsmanship
Show Answer & Explanation

Answer: (B) A Japanese concept of continuous improvement in work practices

Explanation:
Kaizen is described as a Japanese concept meaning 'continuous improvement' that has been applied in Japan since the mid-1940s and helped the country achieve higher standards of living.

Question: Which facilitator of human capital directly supports children's ability to attend school regularly and learn better?
A. Technology advancement
B. Good healthcare and sound body condition
C. Social work ethic
D. Investment in machinery
Show Answer & Explanation

Answer: (B) Good healthcare and sound body condition

Explanation:
The chapter states that good health supports cognitive development, allowing children to attend school regularly and learn better, making healthcare a key facilitator of human capital.

Question: What is the primary source of funds when individuals first start a business?
A. Bank loans exclusively
B. Stock market offerings
C. Personal savings, family, and friends
D. Government grants
Show Answer & Explanation

Answer: (C) Personal savings, family, and friends

Explanation:
The chapter explains that personal savings, family, and friends are the first source of funds and support for individuals when they start a business, as illustrated by Ratna's experience.

Question: Which statement accurately reflects what India achieved in 2014 regarding Corporate Social Responsibility?
A. India became the first nation to voluntarily adopt CSR practices
B. India was the first nation to bring a CSR law mandating companies to spend 2 per cent of average profits on CSR activities
C. India created the highest number of CSR initiatives worldwide
D. India introduced CSR after observing Germany's model
Show Answer & Explanation

Answer: (B) India was the first nation to bring a CSR law mandating companies to spend 2 per cent of average profits on CSR activities

Explanation:
The chapter explicitly states that India was the first nation in the world to bring a Corporate Social Responsibility law in 2014 that mandated companies to spend 2 per cent of their average profits of the last three years on CSR activities.

Question: What does the chapter suggest about the relationship between technology and labour in agriculture?
A. Technology always replaces labour completely
B. Increased machine use in agriculture can lower dependence on labour while changing output proportions
C. Technology has no effect on labour requirements
D. Farmers reject technological advances
Show Answer & Explanation

Answer: (B) Increased machine use in agriculture can lower dependence on labour while changing output proportions

Explanation:
The chapter notes that increased machine use in agriculture can lower dependence on labour, demonstrating how technology can alter the proportion of factors used in production.

Question: Why did the stitched shipbuilding technique decline after the 16th century?
A. The technique was not effective for ocean navigation
B. It was replaced by European ships arriving in the Indian Ocean
C. Indians lost interest in maritime trade
D. The technique required too much capital investment
Show Answer & Explanation

Answer: (B) It was replaced by European ships arriving in the Indian Ocean

Explanation:
The chapter states that the stitching technique for ships saw a severe decline after the arrival of Europeans in the Indian Ocean in the 16th century.

Question: What is the demographic dividend mentioned in the chapter, and how does India benefit from it?
A. A monetary award given to the elderly population
B. The benefit a country gets when it has a large number of young and working people who can contribute to economic growth
C. A tax reduction for businesses employing young workers
D. A government insurance scheme for retired workers
Show Answer & Explanation

Answer: (B) The benefit a country gets when it has a large number of young and working people who can contribute to economic growth

Explanation:
The chapter defines demographic dividend as the benefit a country gets when it has a large number of young and working people. According to the Economic Survey of India 2024, 65 per cent of India's population is below 35 years, positioning India to leverage this advantage through education, health, training, and skilling.

Question: In the mobile phone manufacturing process described, which stage comes immediately after the R&D team conceptualises new features?
A. Testing the phone for functionality
B. Distribution to retail stores
C. Acquiring land and setting up factory
D. Mass production and packaging
Show Answer & Explanation

Answer: (C) Acquiring land and setting up factory

Explanation:
The flow chart showing the process of mobile phone assembly indicates that after the R&D team conceptualises new features, the next step is to acquire land and set up the factory for production.

Question: What responsibility do businesses have toward their workers according to the chapter?
A. • Employers must pay workers fairly and ensure safe working environments • Companies should invest in training and education for skill development • Laws protecting workers' rights, preventing discrimination, and providing benefits must be followed
B. Workers should accept any wage offered to them
C. Businesses have no responsibility beyond making profits
D. Employee welfare is only relevant in large companies
Show Answer & Explanation

Answer: (A) • Employers must pay workers fairly and ensure safe working environments • Companies should invest in training and education for skill development • Laws protecting workers' rights, preventing discrimination, and providing benefits must be followed

Explanation:
The chapter outlines three key responsibilities: fair compensation and working conditions, skill development and training, and adherence to workplace rights and protections including fair treatment and benefits like healthcare or paid leave.

Question: Based on the chapter's discussion of ancient Indian skill heritage, what was the primary purpose of the śhilpa śhāstras?
A. To record historical events and battles
B. To provide detailed design guidelines for sculptures, paintings, buildings, wooden items, and jewellery
C. To teach mathematics and astronomy
D. To document trade routes across the Indian Ocean
Show Answer & Explanation

Answer: (B) To provide detailed design guidelines for sculptures, paintings, buildings, wooden items, and jewellery

Explanation:
The chapter describes śhilpa śhāstras as ancient texts containing detailed design guidelines on sculptures, paintings, buildings, wooden items, and jewellery, with specific prescriptions regarding postures, colours, measurements, and proportions.

Question: How does the chapter illustrate the concept that all jobs are important to society?
A. By listing high-paying professions
B. By describing what would happen if street cleaners, trash collectors, farmers, and doctors were unavailable
C. By ranking jobs in order of importance
D. By focusing only on entrepreneurship
Show Answer & Explanation

Answer: (B) By describing what would happen if street cleaners, trash collectors, farmers, and doctors were unavailable

Explanation:
A 'Think About It' section asks readers to consider what would happen if nobody cleaned streets, collected trash, farmers stopped cultivating crops, or doctors were unavailable, highlighting that diverse jobs are all essential to society's functioning.

Question: What does the chapter suggest about the sustainability of using natural resources in production?
A. Natural resources are unlimited and can be used freely
B. Producers should use natural resources responsibly to avoid degradation and meet present needs without compromising future generations' ability to meet theirs
C. Environmental concerns are not relevant to production
D. Only large corporations need to worry about sustainability
Show Answer & Explanation

Answer: (B) Producers should use natural resources responsibly to avoid degradation and meet present needs without compromising future generations' ability to meet theirs

Explanation:
The chapter emphasizes that natural resources are limited and can be degraded, giving examples like pollution from leather factories. It concludes that producers must use resources responsibly through sustainable practices to replenish them for future use.

Question: In the context of factors of production, how does physical capital differ from human capital?
A. Physical capital refers to machinery and equipment, while human capital refers to the knowledge and skills of workers
B. Physical capital is more important than human capital in all types of production
C. Physical capital can be easily replaced, but human capital cannot be transferred between workers
D. Physical capital only applies to manufacturing, while human capital applies only to service sectors
Show Answer & Explanation

Answer: (A) Physical capital refers to machinery and equipment, while human capital refers to the knowledge and skills of workers

Explanation:
The chapter distinguishes between these two forms of capital: physical capital encompasses tangible assets like machinery and tools, whereas human capital represents the specialized knowledge, skills, abilities, and expertise that individuals bring to their work. The text explicitly states that human capital is not just basic labour effort but also the quality and efficiency of that labour.

Question: According to Bibek Debroy's statement at the beginning of the chapter, what is necessary for India's growth and productivity?
A. Acquiring more land from neighbouring countries
B. More efficient use of land, labour, and capital
C. Reducing the role of entrepreneurs in the economy
D. Replacing all manual labour with advanced machinery
Show Answer & Explanation

Answer: (B) More efficient use of land, labour, and capital

Explanation:
The opening quote emphasizes that India's largest contribution to growth and productivity will come from using land, labour, and capital more efficiently, not from acquiring more resources or eliminating their use.

Question: What does the chapter identify as a key facilitator of human capital development in India?
A. Reducing the number of schools and colleges
B. Increasing adult literacy rates and providing quality education
C. Limiting access to training programs
D. Discouraging skill-based learning
Show Answer & Explanation

Answer: (B) Increasing adult literacy rates and providing quality education

Explanation:
The chapter discusses adult literacy rates and their role in enhancing skills and productivity, noting that India's literacy rate has improved. Education and training are explicitly named as facilitators that help individuals develop the knowledge and skills needed for better employment and contribution to the economy.

Question: Based on the chapter's discussion of J.R.D. Tata, what was a distinctive aspect of his entrepreneurial vision?
A. He believed businesses should only focus on making maximum profit
B. He thought businesses should also help society, not just generate profits
C. He avoided taking any risks in his business ventures
D. He discouraged his workers from developing better working conditions
Show Answer & Explanation

Answer: (B) He thought businesses should also help society, not just generate profits

Explanation:
The case study of J.R.D. Tata emphasizes that he believed 'businesses should not only make money but also help society.' This reflects his vision that entrepreneurship carries responsibility beyond profit-making, including social welfare and fair treatment of workers.

Question: What advantage does technology provide in accessing education and job opportunities, as mentioned in the chapter?
A. Technology makes education more expensive and difficult to access
B. Technology eliminates the need for skilled workers entirely
C. Technology eliminates geographical barriers and allows access to learning and jobs from anywhere
D. Technology replaces the need for practical training with only theoretical knowledge
Show Answer & Explanation

Answer: (C) Technology eliminates geographical barriers and allows access to learning and jobs from anywhere

Explanation:
The chapter describes how platforms like SWAYAM and the National Career Service use technology to allow people to access courses and job information regardless of location. The text explicitly states that 'technology has eliminated geographical barriers, allowing people to access knowledge, skill development and jobs in India and abroad.'

Question: How does the chapter explain the connection between supply chain disruptions and production?
A. Supply chain disruptions have no impact on production activities
B. When supplies from distant locations are disrupted, production can halt entirely
C. Supply chains only affect small businesses, not large ones
D. Supply chain challenges help improve production efficiency
Show Answer & Explanation

Answer: (B) When supplies from distant locations are disrupted, production can halt entirely

Explanation:
The chapter discusses how relying on sources from far-off places instead of local inputs can result in production halts when disruptions occur, using the COVID-19 pandemic as an example of how supply chain challenges can stop production processes entirely.

Question: What does the chapter suggest about the ancient Indian practice of treating tools in production?
A. Tools were considered worthless and discarded after use
B. Tools were worshipped as sacred objects, reflecting respect for craftsmanship
C. Tools were only used in religious ceremonies, not in actual production
D. Tools were imported from foreign countries and not valued locally
Show Answer & Explanation

Answer: (B) Tools were worshipped as sacred objects, reflecting respect for craftsmanship

Explanation:
The chapter notes that in ancient India, tools (a type of technology) used in production were worshipped, and this tradition continues as Viśhwakarmā pūjā or Āyudha pūjā. This practice reflected the respect and spiritual significance placed on the instruments of creation and work.

Question: According to the chapter, what does 'labour-intensive' mean in the context of production sectors?
A. Sectors that require workers to labour under harsh conditions
B. Sectors where production relies more heavily on human effort than capital and machinery
C. Sectors that only employ temporary workers
D. Sectors that use the most advanced technology available
Show Answer & Explanation

Answer: (B) Sectors where production relies more heavily on human effort than capital and machinery

Explanation:
The chapter explains that agriculture, construction, and handicraft sectors are labour-intensive because their output relies more on labour, meaning they depend more on human effort and skill rather than large amounts of machinery and capital investment.

Question: How does the chapter illustrate the concept of entrepreneurship through the example of Ratna's restaurant?
A. Ratna simply inherited the restaurant from her family without any effort
B. Ratna identified a need, took risks by investing time and money, organized resources, and built a successful business over five years
C. Ratna copied an existing restaurant model without any innovation
D. Ratna's success was purely due to luck and had nothing to do with her decisions
Show Answer & Explanation

Answer: (B) Ratna identified a need, took risks by investing time and money, organized resources, and built a successful business over five years

Explanation:
Ratna's journey demonstrates entrepreneurship by showing how she recognized an opportunity on the city outskirts, gathered factors of production (location, money, staff, ingredients), managed operations, and grew her business into a successful enterprise with a team—embodying the key characteristics of an entrepreneur: identifying a problem, taking risks, combining resources, and making key business decisions.

Question: What responsibility toward employees does the chapter emphasize that businesses must fulfill?
A. Businesses should pay workers as little as possible to maximize profits
B. Businesses should provide fair compensation, safe working conditions, and opportunities for skill development
C. Businesses have no responsibility toward their workers beyond hiring them
D. Businesses should discourage workers from taking paid leave or developing new skills
Show Answer & Explanation

Answer: (B) Businesses should provide fair compensation, safe working conditions, and opportunities for skill development

Explanation:
• Businesses must ensure workers are paid fairly for their labour
• Working environments must be safe
• Employers should invest in training and education so workers develop competitive skills
• Laws protecting workers' rights, preventing discrimination, and providing benefits like healthcare must be followed

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