CBSE Class 8 Social Science Chapter 07 Factors Of Production MCQs Set 03

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

Explore reliable objective questions for Chapter 07 Factors Of Production tailored for Class 8 learners. Utilizing these Social Science multiple-choice formats ensures thorough preparation and strengthens problem-solving speed for upcoming school assessments.

Practice Chapter 07 Factors Of Production MCQs for Class 8 Social Science

View or download the dedicated Chapter 07 Factors Of Production MCQ resource below. Practicing these 50 objective questions regularly builds familiarity with standard exam patterns and helps secure higher marks in final Social Science evaluations.

Question: When Ratna decided to expand her restaurant business beyond personal resources, what financing method did she employ to cover the shortfall?
A. She borrowed money from government grants
B. She took a loan from a bank and paid back the principal and interest over time
C. She sold a portion of her business to investors through the stock market
D. She asked family members to contribute equal amounts to match her savings
Show Answer & Explanation

Answer: (B) She took a loan from a bank and paid back the principal and interest over time

Explanation:
The chapter states that Ratna's personal savings and family support were insufficient, so she took a bank loan to meet the shortfall and repaid it with interest over time. This demonstrates how businesses access capital through financial institutions when initial sources are inadequate.

Question: Which ancient Indian practice demonstrates that work was viewed as a form of devotion in the production process?
A. Artisans sold their products at premium prices to wealthy rulers
B. Tools used in work were worshipped, a tradition continuing as Viśhwakarmā pūjā or Āyudha pūjā
C. Producers kept detailed written records of their manufacturing techniques
D. Workers were given holidays to rest and reflect on their craft
Show Answer & Explanation

Answer: (B) Tools used in work were worshipped, a tradition continuing as Viśhwakarmā pūjā or Āyudha pūjā

Explanation:
The chapter explicitly mentions that tools were worshipped in ancient India, reflecting a spiritual approach to work and production. This practice continues today in the form of tool-worship ceremonies, showing how cultural values shaped the quality and dedication of craftspeople.

Question: What does the chapter identify as the core difference between a factory relying on machinery versus one depending on manual workers?
A. Manual workers are always more skilled than machine operators
B. A machinery-dependent factory is capital-intensive, while one with many workers is labour-intensive
C. Factories with machinery cannot produce high-quality products
D. Labour-intensive work produces better goods but takes longer than capital-intensive production
Show Answer & Explanation

Answer: (B) A machinery-dependent factory is capital-intensive, while one with many workers is labour-intensive

Explanation:
The chapter defines capital-intensive production as requiring more machinery and capital (like semiconductor manufacturing), while labour-intensive production relies more on human workers (like agriculture and handicrafts). The proportion of each factor varies based on the product type and production method.

Question: According to the chapter, how does the supply chain disruption illustrated during COVID-19 differ from typical production challenges?
A. Supply chain issues only affect small businesses, not large corporations
B. When production relies on distant sources instead of local inputs, disruptions can halt the entire manufacturing process
C. Supply chain problems are temporary and never cause lasting damage to businesses
D. Disruptions in supply chains only increase production costs, never stop it entirely
Show Answer & Explanation

Answer: (B) When production relies on distant sources instead of local inputs, disruptions can halt the entire manufacturing process

Explanation:
The chapter explains that depending on far-off sources rather than local inputs creates vulnerability to supply chain disruptions, as happened during COVID-19, when entire production processes halted. Geographic interconnectedness can be both beneficial and risky.

Question: What specific skill does the chapter suggest software developers, engineers, and project managers contribute during the mobile phone manufacturing process?
A. They physically assemble all components of the phone
B. They use their specialized knowledge and expertise to design, supervise, and improve products and processes
C. They handle marketing and sales of finished phones
D. They manage the distribution to retail stores
Show Answer & Explanation

Answer: (B) They use their specialized knowledge and expertise to design, supervise, and improve products and processes

Explanation:
The chapter states that teams of software, electrical, and mechanical engineers, along with project managers, apply their expertise throughout production stages to develop products. Human effort and specialized knowledge are essential at every phase, from conception to improvement.

Question: Based on the chapter's discussion of India's demographic dividend, what specific condition must be met for India to benefit from its young population?
A. Young people must remain unemployed to maintain population growth
B. Individuals must have access to quality education, health, training, and skilling opportunities
C. The government must restrict immigration of skilled workers from other countries
D. Young workers must accept lower wages than older workers
Show Answer & Explanation

Answer: (B) Individuals must have access to quality education, health, training, and skilling opportunities

Explanation:
The chapter clearly states that to capitalize on the demographic dividend—having a large young, working population—individuals must have access to quality education, health, training, and skilling. Without these facilitators, the potential advantage cannot be realized, and the nation cannot progress.

Question: What does the chapter suggest about why certain traditional production techniques like stitched shipbuilding have declined in modern India?
A. Modern techniques were always superior and made traditional methods obsolete
B. European arrival and introduction of new technologies made traditional stitched shipbuilding methods less competitive
C. Indian artisans forgot how to teach these traditional skills to younger generations
D. The Indian government banned the use of traditional shipbuilding methods
Show Answer & Explanation

Answer: (B) European arrival and introduction of new technologies made traditional stitched shipbuilding methods less competitive

Explanation:
The chapter notes that stitched shipbuilding saw severe decline after Europeans arrived in the Indian Ocean in the 16th century. This illustrates how external factors and new technologies can displace indigenous techniques, though the chapter also mentions this traditional method is still used for making small fishing boats today.

Question: According to the chapter, what makes education and training distinct facilitators of human capital, and how do they work together?
A. Education teaches theory while training teaches nothing practical
B. Education provides knowledge starting with literacy and extending to expertise, while training applies that knowledge through hands-on practice and real-world scenarios
C. Training is only for manual workers, while education is only for office workers
D. They are identical processes and have no meaningful difference in developing human capital
Show Answer & Explanation

Answer: (B) Education provides knowledge starting with literacy and extending to expertise, while training applies that knowledge through hands-on practice and real-world scenarios

Explanation:
The chapter illustrates this through the civil engineering example: education teaches design principles and materials, while training involves observing construction sites, testing materials, and hands-on application. Both together—not separately—prepare individuals to excel in careers by combining theoretical knowledge with practical experience.

Question: What does the chapter indicate about the relationship between workplace culture and the productivity of human capital?
A. Workplace culture has no impact on how well employees perform their jobs
B. A culture emphasizing hard work, continuous improvement, and excellence (like kaizen in Japan or German work ethic) contributes to higher productivity and global competitiveness
C. Only large multinational companies benefit from positive workplace cultures
D. Workplace culture only affects employee happiness, not actual work output
Show Answer & Explanation

Answer: (B) A culture emphasizing hard work, continuous improvement, and excellence (like kaizen in Japan or German work ethic) contributes to higher productivity and global competitiveness

Explanation:
The chapter uses Japan's kaizen concept and Germany's work ethic as examples, showing how cultural values—punctuality, attention to detail, continuous improvement—became embedded in human capital and directly contributed to those nations' global leadership in their respective industries. Culture shapes productivity.

Question: In the context of the chapter's discussion of responsibilities toward factors of production, what does Corporate Social Responsibility (CSR) in India specifically mandate?
A. Companies may voluntarily contribute to social causes if they choose
B. Companies are legally required to spend 2 per cent of their average profits of the past three years on CSR activities
C. Only non-profit organizations must engage in social responsibility activities
D. CSR laws only apply to foreign companies operating in India
Show Answer & Explanation

Answer: (B) Companies are legally required to spend 2 per cent of their average profits of the past three years on CSR activities

Explanation:
The chapter explicitly states that India was the first nation to bring a CSR law in 2014 that mandated companies to spend 2 per cent of their average profits over the last three years on CSR activities. This requirement reflects government commitment to ensure businesses address social and environmental concerns.

Question: What does the chapter reveal about how the ancient text śhilpa śhāstras functioned within India's skill-based knowledge system?
A. They were storytelling works meant only for entertainment purposes
B. They served as detailed design guidelines prescribing exact specifications for sculptures, paintings, buildings, wooden items, and jewellery across generations
C. They documented the business transactions of artisans
D. They were religious texts unrelated to production and craftsmanship
Show Answer & Explanation

Answer: (B) They served as detailed design guidelines prescribing exact specifications for sculptures, paintings, buildings, wooden items, and jewellery across generations

Explanation:
The chapter explains that śhilpa śhāstras contained detailed design guidelines including exact specifications for postures, colours, measurements, and proportions of figures in various crafts. They represented a formalized knowledge system that was passed down and built upon across generations, ensuring quality and consistency in production.

Question: Which statement best explains how the chapter portrays the interconnectedness of the factors of production?
A. Each factor of production works independently and does not affect the others
B. The factors complement each other; missing or misusing one factor can make production inefficient or halt it entirely, but technology can change the proportions used
C. Only land and labour are interconnected; capital and entrepreneurship operate separately
D. Entrepreneurship is the only factor that truly matters for successful production
Show Answer & Explanation

Answer: (B) The factors complement each other; missing or misusing one factor can make production inefficient or halt it entirely, but technology can change the proportions used

Explanation:
The chapter illustrates that factors are interconnected puzzle pieces—when combined properly, they create goods and services, but if one is missing or misused, production becomes inefficient or stops. However, new technologies can alter the proportions needed, such as machines reducing labour dependence in agriculture.

Question: What does the chapter suggest about the importance of different occupations to society's functioning?
A. Some jobs like doctors and engineers are important, while street cleaners and farmers have little value
B. All jobs have equal importance; without street cleaners, trash collectors, farmers, and doctors, society would face serious problems
C. Only jobs in manufacturing industries contribute to societal progress
D. Service sector jobs are less important than production-based occupations
Show Answer & Explanation

Answer: (B) All jobs have equal importance; without street cleaners, trash collectors, farmers, and doctors, society would face serious problems

Explanation:
Through rhetorical questions, the chapter asks what would happen if nobody cleaned streets, collected trash, or if farmers stopped cultivating and doctors were unavailable. This demonstrates that diverse occupations, regardless of social prestige, are interdependent and essential for society's wellbeing.

Question: Based on the chapter's description of Ratna's restaurant, which sequence of decisions best reflects the entrepreneurial process outlined in the chapter?
A. She chose a location, then organized money, hired staff, and planned for growth
B. She hired staff first, then found a location, acquired equipment, and secured funding
C. She raised capital from the stock market, then built the restaurant from scratch
D. She purchased equipment, then hired workers, and later decided on a location
Show Answer & Explanation

Answer: (A) She chose a location, then organized money, hired staff, and planned for growth

Explanation:
The chapter states that when Ratna started her business, "she had to choose a location, organise money for rent and equipment, hire staff, buy ingredients, and plan how to make her dream a success." This sequence reflects the entrepreneurial process of identifying needs, securing resources, assembling factors of production, and planning for success.

Question: Which economic sectors rely predominantly on labour rather than capital and machinery, according to the chapter's discussion of production inputs?
A. Semiconductor manufacturing and satellite production
B. Agriculture, construction, and handicraft sectors
C. Technology and software development
D. Banking and financial services
Show Answer & Explanation

Answer: (B) Agriculture, construction, and handicraft sectors

Explanation:
The chapter explicitly states that agriculture, construction, and handicraft sectors are labour-intensive, meaning they depend more on human workers than on expensive machinery and capital equipment.

Question: What does the chapter mean when it describes the quality and efficiency of work as distinct from the physical effort itself?
A. It refers to the speed at which workers complete tasks
B. It distinguishes human capital from labour—the knowledge, skills, and expertise applied to work
C. It explains why some workers are paid higher wages than others
D. It describes the difference between full-time and part-time employment
Show Answer & Explanation

Answer: (B) It distinguishes human capital from labour—the knowledge, skills, and expertise applied to work

Explanation:
While labour refers to physical and mental effort, human capital encompasses the specialised skills, knowledge, and abilities that make that effort more valuable and productive.

Question: According to the chapter, what specific outcome resulted from the arrival of Europeans in the Indian Ocean during the 16th century for indigenous shipbuilding practices?
A. Stitched shipbuilding techniques were improved with European methods
B. The stitched shipbuilding technique experienced severe decline
C. Indian shipbuilders adopted European nailing techniques
D. Maritime trade expanded dramatically in India
Show Answer & Explanation

Answer: (B) The stitched shipbuilding technique experienced severe decline

Explanation:
The chapter notes that stitched shipbuilding saw a severe decline after the arrival of Europeans in the Indian Ocean in the 16th century, and this technique is now used only for making small fishing boats.

Question: How does the chapter characterise the relationship between good health and worker productivity in the workplace?
A. • Healthy workers require higher salaries • Good health supports cognitive and physical performance • Workers stay healthy by working shorter hours
B. Health is primarily the worker's personal responsibility
C. Productivity depends only on worker motivation, not health
D. Ill health actually increases worker focus on the job
Show Answer & Explanation

Answer: (A) • Healthy workers require higher salaries • Good health supports cognitive and physical performance • Workers stay healthy by working shorter hours

Explanation:
• Good health enables workers to attend regularly and perform better mentally and physically
• They can accomplish more in shorter time periods and remain creative
• They do not lose work days due to illness.

Question: Which facilitators of human capital does the chapter present as working together to prepare individuals for successful careers?
A. Only education, with training being optional
B. Education, training, healthcare, technology use, and social context combined
C. Primarily workplace experience and on-the-job learning
D. Government employment policies and wage regulations
Show Answer & Explanation

Answer: (B) Education, training, healthcare, technology use, and social context combined

Explanation:
The chapter identifies multiple facilitators—education, training, health, use of technology, and social context—all of which interact to make people more productive in the workforce.

Question: What does the chapter reveal about how Ratna obtained the capital to launch Pause Point beyond her initial personal savings?
A. She asked family members for an interest-free loan
B. She took a loan from the bank and paid interest on it
C. She partnered with an investor who provided all capital
D. She used money from her previous business
Show Answer & Explanation

Answer: (B) She took a loan from the bank and paid interest on it

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

Question: According to the chapter's discussion of India's demographic profile, what advantage could arise from having 65 per cent of the population below age 35?
A. Reduced government spending on services
B. More people receiving pensions and benefits
C. Potential to achieve a demographic dividend if these workers have quality education, health, and training
D. Automatically higher tax revenue without other improvements
Show Answer & Explanation

Answer: (C) Potential to achieve a demographic dividend if these workers have quality education, health, and training

Explanation:
The demographic dividend occurs when a large proportion of the population is young and working, earning and contributing, while fewer depend on them—but this benefit requires access to quality education, health, training, and skilling.

Question: What does the chapter indicate about the role of technology in allowing individuals to overcome geographical limitations?
A. Technology can eliminate the need for formal education entirely
B. Online platforms like SWAYAM and National Career Service have made knowledge, skills, and jobs accessible across regions
C. Technology makes traditional skills obsolete and unnecessary
D. Only wealthy individuals can benefit from technology-based learning
Show Answer & Explanation

Answer: (B) Online platforms like SWAYAM and National Career Service have made knowledge, skills, and jobs accessible across regions

Explanation:
The chapter demonstrates how technology has eliminated geographical barriers—through SWAYAM and National Career Service, people can access education, skill development, and job opportunities in India and abroad regardless of location.

Question: How does the chapter explain the concept that all occupations, including seemingly humble jobs, contribute to society's wellbeing?
A. It states that some jobs are more valuable than others
B. It asks what would happen if street cleaners, garbage collectors, farmers, and doctors were unavailable, implying all jobs are essential
C. It argues that only skilled professions matter to the economy
D. It suggests that low-wage workers do not contribute to society
Show Answer & Explanation

Answer: (B) It asks what would happen if street cleaners, garbage collectors, farmers, and doctors were unavailable, implying all jobs are essential

Explanation:
The chapter uses a thought-provoking question: what would happen if nobody cleaned streets, collected trash, farmers stopped cultivating, or doctors were unavailable—emphasizing that all occupations are necessary for society to function.

Question: What does the chapter identify as the primary difference between the Indian practice of treating work during ancient times compared to modern production approaches?
A. Ancient workers were less skilled than modern workers
B. Work was viewed as devotion and an offering, combining kalā (art) and vidyā (knowledge), pursued with dedication across generations
C. Ancient production methods were faster and more efficient
D. There is no significant difference between ancient and modern approaches
Show Answer & Explanation

Answer: (B) Work was viewed as devotion and an offering, combining kalā (art) and vidyā (knowledge), pursued with dedication across generations

Explanation:
The chapter describes how in ancient India, work was a form of expressing nature and striving for perfection, done with devotion, and tools were even worshipped—this reflects a philosophical approach to production very different from modern industrial models.

Question: According to the chapter, what specific legal mandate did India introduce in 2014 regarding corporate responsibility to society?
A. Companies must provide free training to all employees
B. Companies must spend 2 per cent of their average profits of the last three years on Corporate Social Responsibility activities
C. Companies must double the wages of all workers
D. Companies must close operations that pollute the environment
Show Answer & Explanation

Answer: (B) Companies must spend 2 per cent of their average profits of the last three years on Corporate Social Responsibility activities

Explanation:
India became the first nation in the world to mandate by law that companies spend 2 per cent of their average profits of the last three years on CSR activities, making it a legal requirement rather than voluntary.

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Chapter 07 Factors Of Production Objective Questions & Solutions for Class 8 Social Science

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