CBSE Class 8 Social Science Chapter 07 Factors Of Production MCQs Set 02

Download CBSE MCQs for Class 8 Social Science: Chapter 07 Factors Of Production

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Chapter-wise Objective Questions: Chapter 07 Factors Of Production

Navigate directly to the 50 objective questions for Chapter 07 Factors Of Production using the digital viewer below. Each practice set includes verified answer keys, allowing students to instantly cross-check their work and identify areas requiring further revision.

Question: According to the chapter, which economic activities depend more heavily on labour than on capital and machinery?
A. Agriculture, construction, and handicrafts
B. Semiconductor and satellite manufacturing
C. Banking and financial services
D. Information technology and software development
Show Answer & Explanation

Answer: (A) Agriculture, construction, and handicrafts

Explanation:
The chapter explicitly states that agriculture, construction, and handicraft sectors are labour-intensive, meaning they rely more on labour than capital, unlike capital-intensive sectors like semiconductor chips or satellites that require more machinery and specialised equipment.

Question: When Ratna started her restaurant Pause Point, where did she obtain the additional money needed beyond her personal savings?
A. From her family members as a gift
B. Through a loan from a bank
C. By selling shares to the public
D. From the government as a subsidy
Show Answer & Explanation

Answer: (B) Through a loan from a bank

Explanation:
The text states that Ratna's personal savings were insufficient, so she took a loan from the bank to meet the shortfall and paid interest along with a portion of the loan amount over time.

Question: Which of the following best explains what the chapter means by 'human capital'?
A. The total amount of money workers earn in their lifetime
B. The specialised skills, knowledge, abilities and expertise required to perform labour
C. The number of people available to work in an economy
D. The physical tools and machines used by workers
Show Answer & Explanation

Answer: (B) The specialised skills, knowledge, abilities and expertise required to perform labour

Explanation:
The chapter defines human capital as the specialised skills, knowledge, abilities and expertise required to perform labour—not just basic effort, but the quality and efficiency of that labour.

Question: According to the chapter, what is one way that education and training prepare individuals for better careers?
A. By guaranteeing them higher salaries immediately
B. By teaching them principles and concepts that apply to real-world problems, such as design and materials in civil engineering
C. By reducing the need for them to work in factories
D. By eliminating the need for practical workplace experience
Show Answer & Explanation

Answer: (B) By teaching them principles and concepts that apply to real-world problems, such as design and materials in civil engineering

Explanation:
The chapter illustrates how a civil engineering student learns principles of design and materials through education, which are then applied to building infrastructure like roads and bridges, showing how learning prepares people to excel in their careers.

Question: What does the chapter identify as a way that good health contributes to an individual's work performance?
A. It allows people to work longer hours without rest
B. It enables workers to give their best physically and mentally, do more in shorter time periods, and remain creative
C. It eliminates the need for training and skill development
D. It reduces the cost of production for businesses
Show Answer & Explanation

Answer: (B) It enables workers to give their best physically and mentally, do more in shorter time periods, and remain creative

Explanation:
The chapter explains that when workers are of sound body and health, they are able to give their best both physically and mentally, accomplish more in shorter periods, be creative, and avoid missing work due to illness.

Question: In the context of the chapter, what does 'stock market' refer to?
A. A grocery store where shares of companies are sold
B. A warehouse where inventory is stored
C. A special type of market where shares of companies are bought and sold to raise capital
D. A government office that regulates business practices
Show Answer & Explanation

Answer: (C) A special type of market where shares of companies are bought and sold to raise capital

Explanation:
The chapter defines the stock market as a special type of market where shares are bought and sold, allowing large companies to raise money from the public by offering them a share of profits called a dividend.

Question: Which of the following statements about the stitched shipbuilding technique is accurate according to the chapter?
A. It was invented in Europe and brought to India by traders
B. It used nails to join wooden planks, making ships very heavy
C. It involved stitching wooden planks together using cords instead of nails, making ships flexible for ocean navigation
D. It was abandoned in ancient times and rediscovered in the modern era
Show Answer & Explanation

Answer: (C) It involved stitching wooden planks together using cords instead of nails, making ships flexible for ocean navigation

Explanation:
The chapter describes stitched shipbuilding as an Indian technique dating back over 2000 years that involved stitching wooden planks together using cords instead of nails, which made them flexible and helped ships navigate the Indian Ocean with ease.

Question: What does the chapter suggest about the relationship between social and cultural influences and the development of human capital?
A. They have no impact on how people work or develop skills
B. A culture of hard work and continuous improvement, such as the Japanese concept of kaizen, contributes to higher standards of living
C. Only education and healthcare matter for developing human capital
D. Cultural practices prevent technological advancement and innovation
Show Answer & Explanation

Answer: (B) A culture of hard work and continuous improvement, such as the Japanese concept of kaizen, contributes to higher standards of living

Explanation:
The chapter provides examples of kaizen in Japan and German work ethic, showing how cultural values emphasizing hard work, continuous improvement, punctuality and attention to detail have helped these countries develop strong human capital and become global leaders.

Question: Based on the chapter's description of the mobile phone manufacturing process, which stages involve human expertise and decision-making?
A. Only the assembly and packaging stages
B. The R&D conceptualisation, testing for quality, and distribution stages
C. Only the acquisition of raw materials
D. None of the stages require human involvement
Show Answer & Explanation

Answer: (B) The R&D conceptualisation, testing for quality, and distribution stages

Explanation:
The chapter emphasises that human effort is involved at every stage of production, specifically mentioning that teams of engineers and project managers use their expertise to develop products, test phones for functionality and quality, and oversee distribution decisions.

Question: What does the chapter identify as a consequence of supply chain disruptions that rely heavily on sources from far-off places rather than local inputs?
A. Reduced production costs for businesses
B. Faster delivery of products to customers
C. A halt in the production process, as witnessed during the COVID-19 pandemic
D. Improved quality of finished products
Show Answer & Explanation

Answer: (C) A halt in the production process, as witnessed during the COVID-19 pandemic

Explanation:
The chapter explains that when disruption in the supply chain occurs due to relying on distant sources instead of local inputs, it results in a halt in production, using the COVID-19 pandemic as an example of this challenge.

Question: According to the chapter, what responsibility do businesses have regarding natural resources used in production?
A. To extract resources as quickly as possible to maximise profits
B. To use natural resources responsibly so that future generations can meet their needs
C. To avoid using any natural resources whatsoever
D. To pollute as little as possible but not to worry about long-term sustainability
Show Answer & Explanation

Answer: (B) To use natural resources responsibly so that future generations can meet their needs

Explanation:
The chapter stresses that producers must use natural resources responsibly—so that we can meet our needs today without making it harder for future generations to meet theirs—and should try to reduce waste, avoid pollution, and protect the environment.

Question: What does the chapter mean when it describes certain sectors as 'capital-intensive'?
A. They employ more workers than other sectors
B. They require large amounts of money, specialised machinery, and equipment to operate effectively
C. They use traditional methods instead of modern technology
D. They produce goods that are sold at very high prices
Show Answer & Explanation

Answer: (B) They require large amounts of money, specialised machinery, and equipment to operate effectively

Explanation:
The chapter explains that semiconductor chips and satellites are capital-intensive because they require more capital, specialised machinery, and are thus more dependent on physical and financial capital than on labour.

Question: According to the chapter, what makes the Japanese concept of kaizen significant for economic development?
A. It focuses only on increasing workers' salaries
B. It has been applied since the mid-1940s and helped Japan achieve higher standards of living through continuous improvement
C. It eliminates the need for new technology
D. It removes the requirement for worker training
Show Answer & Explanation

Answer: (B) It has been applied since the mid-1940s and helped Japan achieve higher standards of living through continuous improvement

Explanation:
The chapter presents kaizen—meaning continuous improvement—as a concept applied in Japan since the mid-1940s that has helped the country achieve higher standards of living for its people by continuously improving how things are done.

Question: What does the chapter suggest about the role of entrepreneurs in society?
A. They focus solely on making maximum profit without considering social impact
B. They identify problems, take risks, combine factors of production, and contribute to society's welfare through innovation and job creation
C. They only work in large corporations and established industries
D. They avoid taking any financial risks in their ventures
Show Answer & Explanation

Answer: (B) They identify problems, take risks, combine factors of production, and contribute to society's welfare through innovation and job creation

Explanation:
The chapter characterises entrepreneurs as people who identify problems with innovative solutions, combine various factors of production, take risks by investing money and time, and contribute to the welfare of society while creating job opportunities and supporting livelihoods.

Question: Which statement accurately reflects what the chapter says about the use of old versus new technology?
A. Old technology should always be replaced immediately with new technology
B. Technological progress does not always mean replacing old technologies—some like pulleys and wheelbarrows remain useful today
C. New technology is always inferior to older methods
D. Technology has no impact on how production methods evolve
Show Answer & Explanation

Answer: (B) Technological progress does not always mean replacing old technologies—some like pulleys and wheelbarrows remain useful today

Explanation:
The chapter explicitly notes that technological progress does not always mean replacing old technologies, and provides examples of pulleys and wheelbarrows that are still in use today despite advances in modern technology.

Question: According to the chapter, which of the following best explains why healthy workers are more productive than unhealthy ones?
A. They require fewer breaks during the workday
B. They can accomplish more in shorter time periods and are able to be creative and present at work
C. They are naturally gifted with better skills and knowledge
D. They automatically receive higher wages from their employers
Show Answer & Explanation

Answer: (B) They can accomplish more in shorter time periods and are able to be creative and present at work

Explanation:
The chapter directly states that workers of sound body can do more in shorter time periods, be creative, and do not have to be away from work due to ill health, making healthcare a crucial facilitator of human capital development.

Question: What role does 'vidyā' play in the creation of products according to India's ancient skill heritage described in the chapter?
A. It was used as a payment method for skilled workers
B. It represents the knowledge component that combined with kalā (art) to produce goods
C. It was a type of tool that was worshipped during production
D. It served as a written record of business transactions
Show Answer & Explanation

Answer: (B) It represents the knowledge component that combined with kalā (art) to produce goods

Explanation:
The chapter explains that creating products involved a unique blend of kalā (art) and vidyā (knowledge), and that knowledge was passed down from generation to generation and built upon.

Question: What does the chapter suggest would happen to a business if one of its critical factors of production suddenly became unavailable?
A. The business would immediately become profitable
B. Production can become inefficient or can be halted
C. The business would automatically move to a new location
D. Workers would voluntarily work without payment
Show Answer & Explanation

Answer: (B) Production can become inefficient or can be halted

Explanation:
The chapter explicitly states that if some factors are missing or misused, production can become inefficient or can be halted, emphasizing the interconnected nature of all production factors.

Question: How does the chapter distinguish between the terms 'labour' and 'human capital' in the context of production?
A. Labour and human capital are identical terms used interchangeably
B. Labour is the effort alone, while human capital includes the quality, skills, and efficiency of that effort
C. Labour refers only to physical work, while human capital refers only to mental work
D. Human capital is outdated terminology no longer used in modern economics
Show Answer & Explanation

Answer: (B) Labour is the effort alone, while human capital includes the quality, skills, and efficiency of that effort

Explanation:
The chapter explains that labour refers to physical and mental effort used in production, but human capital refers to the specialised skills, knowledge, abilities and expertise required to perform that labour—thus human capital is not just basic effort but the quality and efficiency of that labour.

Question: According to the chapter's discussion of adult literacy rates in India, what gender disparity is evident?
A. Males have a literacy rate of 70 percent and females have 85 percent
B. There is no difference between male and female literacy rates
C. Males have a literacy rate of 85 percent and females have 70 percent
D. The chapter does not provide information about gender differences in literacy
Show Answer & Explanation

Answer: (C) Males have a literacy rate of 85 percent and females have 70 percent

Explanation:
The chapter states that the Adult Literacy Rate in India is 85 per cent for males and 70 per cent for females as of 2023, according to World Bank estimates, indicating a disparity favoring males.

Question: Which aspect of the German work culture does the chapter present as a factor that contributed to Germany's global leadership in technology and manufacturing?
A. Germans invented all modern production techniques
B. Emphasis on punctuality, attention to detail, and quality in their human capital
C. Germany had access to more natural resources than other countries
D. German workers were willing to work for lower wages
Show Answer & Explanation

Answer: (B) Emphasis on punctuality, attention to detail, and quality in their human capital

Explanation:
The chapter notes that Germany places high value on punctuality, attention to detail and quality, and these qualities of their human capital contributed to their rise as a global leader in technology and manufacturing.

Question: What does the chapter identify as an important consequence of India's young population demographic in 2024?
A. It will lead to immediate economic decline
B. It may help India reap benefits of demographic dividend if individuals have access to quality education, health, training, and skilling
C. Older workers will have more job opportunities
D. There will be no need for technological advancement
Show Answer & Explanation

Answer: (B) It may help India reap benefits of demographic dividend if individuals have access to quality education, health, training, and skilling

Explanation:
The chapter explains that 65 per cent of India's population is below age 35, creating potential for demographic dividend—but this requires access to quality education, health, training, and skilling for individuals to benefit the nation's progress.

Question: Based on the chapter's description of technology in production, which statement is most accurate?
A. Technology always completely replaces older methods and tools
B. Technology sometimes improves efficiency without replacing all old methods, and some older tools like pulleys remain useful
C. Technology is only relevant in modern factories, not in traditional industries
D. The chapter suggests technology makes human workers unnecessary in all sectors
Show Answer & Explanation

Answer: (B) Technology sometimes improves efficiency without replacing all old methods, and some older tools like pulleys remain useful

Explanation:
The chapter emphasizes that technological progress does not always mean replacing old technologies—some, like pulleys and wheelbarrows, are still in use today alongside newer technologies, suggesting coexistence rather than complete replacement.

Question: How does the chapter explain the relationship between India's skill heritage and modern production challenges?
A. Ancient skills are completely irrelevant to modern economics
B. India's rich legacy of skill-based knowledge systems may help address the need for diverse job skills today, though many traditional techniques have declined
C. Only foreign techniques are suitable for modern production
D. Skill development is unnecessary in contemporary industries
Show Answer & Explanation

Answer: (B) India's rich legacy of skill-based knowledge systems may help address the need for diverse job skills today, though many traditional techniques have declined

Explanation:
The chapter notes that while many traditional production techniques have either disappeared or are in decline, India has retained a rich legacy of skill-based knowledge systems and workmanship that could inform modern approaches to developing the varied skills required across different sectors.

Question: In the context of entrepreneurship discussed in the chapter, which of the following best describes why J.R.D. Tata's vision extended beyond simply earning profits?
A. He wanted to dominate the global market and expand only to wealthier nations
B. He believed that businesses should contribute to society's welfare while also being financially successful
C. He focused exclusively on creating jobs without regard for the quality of products or services
D. He avoided any involvement in sectors that required significant capital investment
Show Answer & Explanation

Answer: (B) He believed that businesses should contribute to society's welfare while also being financially successful

Explanation:
The chapter explicitly states that J.R.D. Tata 'believed that businesses should not only make money but also help society' and that 'he was a man of vision, hard work, and honesty.' This illustrates how his entrepreneurial motivation combined profit-making with social responsibility—a characteristic that distinguished him as someone who saw business as a tool for broader societal benefit.

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Multiple Choice Questions (MCQs) for Class 8 Social Science Chapter 07 Factors Of Production

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