CBSE Class 9 Economics Notes Chapter 1 – The Story of Village Palampur (Notes and Question & Answer)

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CBSE Class 9 Economics Notes Chapter 1 – The Story of Village Palampur Notes and Question & Answer

Economics – Economics is the process of satisfying unlimited human requirements with the help of available limited resources.

Village Palampur

·         Palampur is a small village.

·         Raiganj (a big village) is 3 km away from Palampur. 

·         Shahpur is the nearest town to the village. (Mishrilal sell Gur, Jaggery)

·         Houses – Made of brick, cement plastering, mud, straw houses, etc.

·         Electricity connection available

·         2 Primary School and 1 High School

·         1 PHC (Primary Health Centre) and 1 Private Dispensary

Family Distribution

·         Total Families – 450

·         150 Families – Landless Labourers – mainly Dalits (lower caste)

·         240 Families – having less than 2-hectare land – cultivate a small plot of land

·         60 Families – having more than 2-hectare land (few have more than 10 hectares) – medium and large farmer

Main Production Activities

·         Farming – The main production activity in the village of Palampur. Most people are dependent on farming for their livelihood.

·         Non-farming activities

    • Dairy-
    • small-scale manufacturing (e.g., activities of weavers and potters, etc.),
    • Transport - Transport services include rickshaws, tonga, jeeps, tractors, truck drivers, traditional bullock carts, and a bogey.
    • Shop - General stores in the village sell a wide range of items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles, notebooks, pens, pencils, and even some types of cloth.
    • Computer Training – Mr. Kareem Computer Training Centre.

Factors to be kept in mind while selecting establishing Factories

1.      Proximity (neat) to the Market to sell the products

2.      Availability of Land at a cheap rate

3.      Supply of Labour – unskilled, semi-skilled, skilled.

4.      Banking and Finance Services

5.      Rules and Regulations

6.      Availability of Raw Material

Factors of Production (or Requirements for Production of Goods and Services)

·         Land – fixed and scare

·         Labour – abundant (easily available)

·         Physical CapitalFixed Capital (tools, machines, buildings) and Working Capital (money, raw material)

·         Human Capital – knowledge and enterprise – to be able to put together land, labour, and physical capital and produce an output.

Multiple Crop Production at Palampur

1.      Rainy Season (Kharif) – Jowar, Bajra

2.      Oct to Dec – Potato

3.      Winter Season (Rabi) - Wheat

Green Revolution – late 1960’s  (Dr. Norman Borlaug) (M.S. Swaminathan-Indian)

·         HYV (High Yield Variety) Seed

·         Fertilizers

·         Pesticides

·         Farm Machinery – Tractor, Threshers

·         Irrigation – Dam, Pump sets, Canals

Benefits of the Green Revolution

·         Punjab, Haryana, and Western Uttar Pradesh most benefited states.

Production increased from 1300 kg/hectare to 3200 kg/hectare

·         It has increased the production on the same pieces of land which produces large quantities of food grains than it was produced earlier.

Drawbacks/Negatives/Limitations of the Green Revolution

·         Overuse of Natural Resources

·         Loss of Soil Fertility

·         Depletion of Water Table – groundwater – very difficult to restore.

·         Chemicals escape from the soil and pollute groundwater, killing bacteria, kills micro-organisms.

  • Poor farmers are unable to afford HYV seeds, fertilizers, and machinery. This may lead to an end with large debts.
  • This is limited to Wheat and Rice only.

Disguised Unemployment – Here peoples seems to be employed but in reality, they are not. Example - 5 members of the same family working on 2 hectares of land. Actually, 2 members are sufficient for 2 hectares of land. 3 Members can be engaged somewhere else. Here, 3 members are unemployed (case of disguised unemployment)

Examples in the Book –

Eg. 1. Dala – Landless labour – work for 160 / day, whereas the Minimum wage is ₹300 / day.

Eg. 2. Savita (Small farmer) took a loan from Tejpal (Large farmer) of ₹2400/- at a 24% rate of interest. She has to repay the entire amount within 4 months. Also, she agreed to work on Tejpal’s land for ₹100/day.

In both the above two cases, labours are not getting the minimum wage amount. The supply of labour is available (abundant) and there is less amount of work. People agrees to work for even less wage rates. It is happening due to a lack of job opportunities.

Exercises Page No 14

1. Every village in India is surveyed once in ten years during the Census and some of the details are presented in the following format. Fill up the following based on information on Palampur.


  1. LOCATION: Bulandshahr District, Western Uttar Pradesh
  2. TOTAL AREA OF THE VILLAGE: 226 hectares
  3. LAND USE (in hectares):

Cultivated Land

Land not available for cultivation (Area

covering dwellings, roads,

ponds, grazing ground)



200 hectares

26 hectares



1 high school, 2 primary schools


1 private dispensary, 1 primary health care centre run by the Government


2 markets: Raiganj and Shahpur

Electricity Supply

Most of the houses have electricity connections. Electricity powers all the tube wells in the fields and is used for various small businesses.


Well-connected neighbouring villages, with Raiganj within 3 km. Proper transportation including bullock carts, tongas, and bogeys carrying jaggery. Also, motor vehicles like motorcycles, jeeps, tractors, and trucks are available for easy transportation.

Nearest Town


2. Modern farming methods require more inputs which are manufactured in industry. Do you agree?


Yes, it is correct to say that modern farming methods require more inputs which are manufactured in the industry. It is because modern farming methods use a high-yielding variety of seeds (HYV). These seeds require both chemical fertilizers and pesticides, agricultural implementations like tractors, and proper irrigation facilities like electric tube wells, and all these elements are manufactured in industries. However, on the other hand, traditional farming methods use a relatively low-yielding variety of seeds and use cow dung and other natural manures as fertilizer, which is why they are less dependent on industrial outputs.

3. How did the spread of electricity help farmers in Palampur?


The spread of electricity helped the farmers of Palampur as it helped in the transformation of the irrigation system of the village. The farmers earlier used Persian wheels to draw water from wells and irrigate small fields. But after the spread of electricity, electric tube wells replaced these Persian wheels. The first tube well was installed by the Government, but later private tube wells were also settled by the farmers.

4. Is it important to increase the area under irrigation? Why?


It is important to increase the land under irrigation because farming is the main source of income for the maximum part of the population in India and only less than 40 percent of the land is cultivable in the country. Farmers are dependent on the monsoon rainwater, and if the rainfall is less, farmers are bound to suffer a major loss. So, if the water is provided for irrigation to the farmers for a larger portion of land, it would give better output and make more land cultivable in India and also encourage farmers to take up newer farming methods without the fear of suffering loss.

5. Construct a table on the distribution of land among the 450 families of Palampur.


The distribution of land among the 450 families of Palampur is as given below:

Area of land Cultivated

Number of Families



Less than 2 hectares


More than 2 hectares


6. Why are the wages for farm labourers in Palampur less than minimum wages?


There are many landless farm labourers who are paid less than the minimum wage in Palampur. The Government declared wage for a farm labourer is Rs.300 per day, but the competition for work among the farm labourers is very high, which is why people agree to work for lower wages. This is because of less job opportunities.

7. In your region, talk to two labourers. Choose either farm labourers or labourers working at construction sites. What wages do they get? Are they paid in cash or kind? Do they get work regularly? Are they in debt?

Answer: Do it yourself.

8. What are the different ways of increasing production on the same piece of land? Use examples to explain.


To grow more than one crop on a piece of land during the year is known as multiple cropping. It is the most common way of increasing production on a given piece of land. The best example of this is cultivation in Palampur. In Palampur, jowar and bajra grow during the rainy season, followed by potato between October and December and during the winter season, wheat is sown in the fields. The main reason for this is the well-developed system of irrigation.

9. Describe the work of a farmer with 1 hectare of land.


A farmer with 1 hectare of land will be called a small farmer. Since the area for cultivation is small, the outcome may also not be high. So, in order to be able to yield (get output) the land in the best possible way, the farmer needs money. This money is borrowed from a moneylender at a high-interest rate and at times may also have to work as a farm labourer for the moneylender. Once the farm is cultivated, the product has to be divided for personal use and for selling in the market. Whatever profit is earned, the farmer has to usually give it away to the moneylender, and little sum of money is left for the use of the farmer himself. The only help a small farmer gets is that of his family members (which also leads to disguised unemployment).

10. How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?


Large and medium farmers sell surplus farm products from a part of their produce. A part of the earnings is saved and kept for buying capital for the next season. A few of them give away their savings to small farmers and loans at high-interest rates and get back the amount by the next season. Thus, they are able to arrange for the capital for farming from their own savings. Some farmers might also use the savings to buy cattle, and trucks, or to set up shops.

11. On what terms did Savita get a loan from Tejpal Singh? Would Savita’s condition be different if she could get a loan from the bank at a low rate of interest?


Savita got a loan from Tejpal Singh at the rate of interest of 24 percent for four months and also had to work for Tejpal Singh as a farm labourer at a wage of Rs.100 per day during the harvest season.

The case would have been different if Savita would have taken the loan from a bank. It is because the rate of interest would have been lesser than what was asked by Tejpal Singh and also, she would have been able to pay complete attention to our own field during the time of harvest.

12. Talk to some old residents in your region and write a short report on the changes in irrigation and changes in production methods during the last 30 years.

Answer: Do it yourself.

13. What are the non-farm production activities taking place in your region? Make a short list.


The non-farm production activities taking place in our region are:

  1. Dairy
  2. Transportation
  3. General Stores
  4. Fishing
  5. Mining

14. What can be done so that more non-farm production activities can be started in villages?


To promote more non-farm production activities in villages the following steps can be taken:

  1. Loans must be available for people at lower interest rates so that they can start up the non-farm activities.
  2. Proper markets should be set up so that the produced goods can be sold.
  3. The concerned authorities must set up better transportation between cities and villages so that the produced goods can be transported to cities and more money can be earned through the non-farming activities.

Extra Questions: -

1. What are the factors of production?
The essential inputs which are required for the production of goods and services are known as factors of production. For example, for the production of cloth, cotton-machine, labour and technology is required.

2. Name the main production activity of Palampur.

3. Give a few examples of fixed capital.
Tools, machines, and buildings.

4. Give two examples of the working capital.
Raw materials, Money in hand.

5. The clay used by a potter is an example of which type of capital?
Working capital.

6. Why is it important to use land very carefully?
Land is a natural resource, once destroyed it is very difficult to restore it.

7. What are rabi crops?
The crops which are grown in the winter season i.e., November or December, and harvested in summer i.e., April or May. For example, wheat.

8. What are kharif crops?
The crops which are grown in the rainy season i.e., June or July, and harvested in October or November. For example, rice.

9. Farmer’s plough is an example of which factors of production?

10. Which is the most abundant factor of production?

11. What is physical capital?
Physical capital includes variety of inputs required at every stage during production like machines, raw materials etc.

12. What are the different categories of physical capital?

·         Fixed capital,

·         Working capital.

13. Categorise the following as fixed capital or working capital:
(i) Cotton,
(ii) Machine.

(i) Cotton — Working capital,
(ii) Machine — Fixed capital.

14. Which term is used for production for self-consumption?
Subsistence farming.

15. Enumerate a few effects of the modem farming method.
Soil degradation, reduced water table below the ground, and water pollution.

16. Mention any two natural factors of production.
Land, forests, water, minerals, etc.

17. What is a market?
It is a place where goods and services can be sold.

18. Define yield.
Crop produced on a given piece of land during a single season.

19. Who provides capital to small farmers at a high rate of interest?
Large farmers, village moneylenders or traders.

20. What does HYV stand for?
High Yielding Varieties (HYV).

21. Write down the names of the crops that were promoted by the Green Revolution.
Cultivation of wheat and rice.

22. During which season do farmers of Palampur grow jo war and bajra?
Rainy season.

23. What is the basic constraint in raising farm production?
The basic constraint in raising farm production land which is a fixed factor of production.

24. Mention any two non-farm activities.
Dairy and transport.

25. Name any two states which benefited from the Green Revolution.

·         Punjab,

·         Haryana.

26. Which is the best way to expand non-farm activities in a village?
Better transportation, availability of loans at low interest, and availability of markets where goods can be sold are the best way to expand non-farming activities.

27. What is multiple cropping?
To grow more than one crop on a piece of land during the year is known as multiple cropping.

28. Mention the standard unit for measuring the area of land.

29. “Many people belonging to SCs (dalits) are discriminated in the village.” Justify giving a reason.
SCs live in one corner of the village and in much smaller houses.

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