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Important Questions and Answers for Class 8 Social Science Chapter 7 Factors of Production 2025-26

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CBSE Exam Practice with Marks Distribution and Stepwise Solutions

On this page, you will find Important Questions Class 8 Social Science Chapter 7 Factors of Production, made for CBSE exams. The questions are carefully chosen from the Social Science syllabus to match what is asked most often in exams. All topics for Chapter 7 are covered to help Class 8 students understand the subject well.


Each important question comes with clear answers, step marking, and diagrams where needed. You get different formats like MCQs, short and long answers, and even case-based questions. This set uses keyword-based answers Class 8 Social Science students need for 2025–26 and is helpful for both practice and revision.


Vedantu’s Important Questions with Answers help you work on high-weightage topics and improve your exam skills. All questions are exam-focused and reviewed by CBSE teachers. You can also download the free Important Questions PDF for quick offline study and revision.


CBSE Exam Practice with Marks Distribution and Stepwise Solutions

1. Multiple choice questions.


1. Which of the following is NOT considered a factor of production?


  • (a) Land
  • (b) Labour
  • (c) Weather
  • (d) Capital

Answer: (c) Weather.


2. Which of the following best describes ‘human capital’?


  • (a) Physical assets like machines
  • (b) The skills, knowledge, and health of people
  • (c) Money invested in business
  • (d) Raw materials used in factories

Answer: (b) The skills, knowledge, and health of people.


3. Which of the following is an example of entrepreneurship?


  • (a) A farmer working on the field
  • (b) A carpenter making chairs
  • (c) An individual launching a new restaurant
  • (d) Factory machines running all day

Answer: (c) An individual launching a new restaurant.


4. Which sector is considered labour-intensive based on the chapter?


  • (a) Agriculture
  • (b) Semiconductor production
  • (c) Oil refining
  • (d) Automobile assembly

Answer: (a) Agriculture.


2. Very Short Answer (VSA).


1. Define ‘capital’ as a factor of production.


Answer: Capital refers to money and human-made resources such as machinery, tools, equipment, and buildings required to produce goods and services.


2. What does ‘entrepreneurship’ mean in economics?


Answer: Entrepreneurship means starting a business or creating something new by taking risks, organizing resources, and providing innovative solutions to problems.


3. Name any two facilitators of human capital.


Answer: Education and training, and healthcare are two important facilitators of human capital development.


4. What is the demographic dividend?


Answer: Demographic dividend refers to the economic benefit a country gains when it has a large working-age population compared to dependents.


3. Short Answer Questions.


1. How are ‘land’ and ‘capital’ different as factors of production?


Answer: Land includes all natural resources like soil, water, and minerals, which are provided by nature. Capital includes man-made resources such as money, machines, buildings, and tools, used to produce goods and services. Land is naturally available, while capital must be created and accumulated.


2. Explain in what way technology acts as an enabler of production.


Answer: Technology improves production by making processes faster, more efficient, and less costly. It enables the use of machines, online tools, and modern knowledge systems, helping businesses to produce more with the same or fewer resources, thus increasing productivity.


3. Why is skill development important for human capital?


Answer: Skill development is important because it enhances the ability of individuals to perform tasks efficiently, increases creativity, job opportunities, productivity, and helps in economic growth. Skilled workers help businesses and society prosper.


4. Describe the responsibilities of businesses towards natural resources.


Answer: Businesses must use natural resources responsibly by reducing waste, avoiding pollution, recycling products, and adopting sustainable methods. This protects the environment and ensures resources are available for future generations.


4. True or False Questions.


1. Human capital refers to only the physical strength of workers.


Answer: False.


2. Land, labour, capital, and entrepreneurship are complementary to each other in production.


Answer: True.


3. Using natural resources carelessly can lead to pollution and harm future generations.


Answer: True.


5. Technology always replaces all old methods in production.


Answer: False.


3. Fill in the Blanks Questions.


1. The process of learning the required skills to do a particular job is called ________.


Answer: training


2. In India, the economic benefit gained from a large working-age population is known as ________.


Answer: demographic dividend


3. A startup is an entrepreneurial venture with limited resources that aims at rapid growth while leveraging ________.


Answer: technology


4. The ability to do an activity or job well with practice and training is called ________.


Answer: skill


Why Understanding Factors of Production Helps Class 8 Students

Learning about factors of production empowers students to recognize the building blocks of our economy. Grasping concepts like land, labour, capital, entrepreneurship, and technology boosts real-world understanding for Class 8 Social Science Chapter 7 and prepares you for practical applications in everyday life and exams.


Tackling important questions from this chapter helps students develop critical thinking skills. By exploring terms like human capital, sustainable use, and entrepreneurship, you gain confidence in answering questions clearly and using examples from daily life or your community studies.


With a focus on technology in production and the responsibilities towards our environment, this chapter connects textbook knowledge to current affairs and future careers. Simple explanations and relatable real-life connections make learning more interesting and meaningful for you.


FAQs on Important Questions and Answers for Class 8 Social Science Chapter 7 Factors of Production 2025-26

1. Are these important questions enough for Class 8 Social Science chapter tests?

Practicing these important questions for Chapter 7, Factors of Production, covers expected exam themes, mark-based formats, and previously asked types. For best results, revise high-weightage subtopics and check stepwise answers. However, always complement your review with textbook reading for full concept clarity and exam accuracy.

2. How to frame long answers to match CBSE step marking?

To score in long answers for Chapter 7, use a structure that highlights each step. Start with a brief introduction, then cover value points. Use subheadings, bullet lists, or numbers for clarity. Underline keywords like land, labour, capital, organisation. Add relevant examples to match CBSE marking.

3. Where can I download important questions with answers as PDF?

You can download a free PDF of important questions with stepwise answers for Class 8 Social Science Chapter 7 Factors of Production from Vedantu. The PDF includes MCQ, short, long, and case-based questions for structured practice and revision—perfect for offline study and quick drills.

4. How to practice diagrams/maps effectively for this chapter?

For Chapter 7, diagrams like factors-of-production flowcharts can be asked. Practice by drawing neat labelled diagrams using pencil, and include all key terms. Follow these quick steps:

  • Read diagram-based questions first.
  • Draw and label clear diagrams.
  • Practice under time limit.

5. Which high-weightage subtopics should I revise first?

Focus first on key subtopics: definition and explanation of factors of production (land, labour, capital, entrepreneurship), types and examples, and the role of organisation. These areas often appear in MCQ, SA, and LA questions, making them most likely to fetch more marks.

6. Do examiners award partial marks for correct steps even if the final answer is wrong?

Yes, in CBSE marking, partial marks are awarded if steps, value points, or keywords are correct, even if the final answer is slightly incorrect. Always show your working and underline important steps to secure marks in each part of the answer.

7. Should I memorize textbook page numbers or focus on command words and value points?

It’s better to focus on command words like define, explain, and the relevant value points in each answer, not textbook page numbers. Using marking keywords and answering as per the question requirement will help you score full marks.