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CBSE Important Questions for Class 9 Social Science Economics The Story of Village Palampur - 2025-26

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The Story of Village Palampur Class 9 Extra Questions and Answers Free PDF Download

Chapter 1 of CBSE Class 9 Economics introduces basic production concepts through the story of a fictional village called Palampur, where farming is the main activity. The Story of Village Palampur Important Questions also explores other activities like small-scale manufacturing, dairy, and transport, which occur on a smaller scale. Students can learn how various resources are combined to produce goods and services in the village. We have solved the CBSE Class 9 Economics Chapter 1 Important Questions and Answers, "The Story of Village Palampur," to make it easier for students to review.

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Students can download the CBSE Class 9 Economics Important Questions for this chapter from the PDF link provided below. The updated CBSE Class 9 Social Science Syllabus includes key topics in history, geography, political science, and economics.

Access the Class 9 Economics Chapter 1 Important Questions and Answers

1. What are the four essential requirements for producing goods and services? Explain each one.

Ans: Producing goods and services needs four main things: land, labour, capital, and entrepreneurship. Land is the natural resources like fields and water needed for production. Labour is the work people do to make goods. Capital includes tools, machines, and buildings used in making products. Entrepreneurship is the skill to organise and manage these resources to produce goods and services. Each of these is important as land provides resources, labour provides work, capital provides tools and infrastructure, and entrepreneurship helps manage and improve production.


2. What items are included in physical capital?

Ans: Physical capital includes things used in production. Machinery refers to equipment like tractors and factory machines. Buildings are structures such as factories and warehouses. Tools are items like ploughs and hand tools used in various tasks. Vehicles include trucks and vans used for transporting goods. These items help in making production more efficient by providing necessary support and resources for different industries.


3. Why is it important to expand the area under irrigation?

Ans: Expanding irrigation is important for several reasons. Higher Yields: More land with irrigation means better crop production. Reliable Water: It provides a steady water supply for crops, not relying on uncertain rainfall. Soil Health: It helps maintain good soil quality. Farmer Security: It helps farmers grow crops more reliably, which improves their income and food security. Expanding irrigation supports better farming and helps provide a steady food supply.


4. How do multiple cropping and modern farming methods differ?

Ans: Multiple cropping involves growing different crops on the same land in a year. It uses traditional methods and relies on natural seasons. Modern farming methods use advanced techniques like artificial irrigation, chemical fertilisers, and high-yield crops. They aim for higher efficiency and productivity. While multiple cropping makes the most of land by growing various crops, modern methods focus on increasing production through technology and improved practices.


5. What are the differences between Fixed Capital and Working Capital? Explain.

Ans: Fixed Capital includes long-term assets like machinery, buildings, and tools that are used over many years. These items are essential for production. Working Capital is used for daily expenses like buying raw materials, paying wages, and covering other short-term costs. It helps keep daily operations running smoothly. Fixed Capital is for long-term use, while Working Capital is for managing everyday financial needs.


6. Describe the primary production activity in Palampur and its main features.

Ans: The main production activity in Palampur is farming. The village grows crops like wheat, rice, and sugarcane, and also raises livestock such as cows and buffaloes. Farming uses a mix of traditional and modern methods, though it is mostly small-scale. Farmers use basic tools and techniques but have adopted some modern practices to improve efficiency. The focus is on crop cultivation and livestock management, supporting both local food needs and the economy.


7. What type of working capital does a farmer using modern farming methods need?

Ans: A farmer using modern farming methods needs working capital for several areas. Seeds and Fertilisers: Money is needed to buy quality seeds and fertilisers. Labour Costs: Funds are needed to pay for workers. Maintenance Costs: Money is required for keeping machinery and equipment in good condition. Irrigation: Investment is needed for setting up and running irrigation systems. Working capital helps cover these costs and ensures smooth farming operations.


8. How is land distributed among the farmers in Palampur?

Ans: In Palampur, land distribution varies. Small Farmers often own small plots, usually less than 1 hectare, which limits their production. Medium Farmers have slightly larger plots, ranging from 1 to 2 hectares, allowing for more farming. Large Farmers have the largest plots, often over 2 hectares, giving them greater production capacity and resources. This uneven distribution affects productivity and income, with larger landowners benefiting more from their resources.


9. Do you think the distribution of cultivated land is uneven in Palampur? Is this also true for India? Explain.

Ans: Yes, the distribution of land in Palampur is uneven. Large Landowners have more land and resources, which helps them produce more and earn more money. Small Landowners have less land, which limits their production and income. This problem is similar in many parts of India, where wealthier regions or people often have more land and better resources, while poorer areas have less. This uneven distribution affects productivity and income, leading to economic disparities.


10. What are the main characteristics of traditional farming methods? List three.

Ans: Traditional farming methods include:


  • Manual Labour: Using basic tools and relying on human effort for farming tasks.

  • Dependence on Rain: Relying on natural rainfall for watering crops, with minimal use of artificial irrigation.

  • Crop Diversity: Growing different types of crops on the same land to keep the soil healthy and reduce risks. These methods focus on sustainability and managing resources carefully, but may not be as efficient as modern farming techniques.


11. Do modern farming methods require more industrially manufactured inputs? Do you agree?

Ans: Yes, modern farming methods need more industrially made inputs.


  • Fertilisers: Chemical fertilisers are used to improve soil and increase crop yields.

  • Pesticides: Chemicals are used to protect crops from pests. 

  • Machinery: Modern equipment like tractors helps make farming more efficient.

  • Irrigation Systems: Irrigation equipment ensures crops get enough water.


These inputs, while increasing productivity, can be costly and depend on industrial products.


12. What problems arise from the unequal distribution of land?

Ans: Unequal land distribution causes several issues:


  • Low Productivity: Small landowners often struggle to produce as much as larger landowners.

  • Economic Disparities: Wealthier landowners can invest in better tools and techniques, widening the income gap.

  • Limited Opportunities: Small farmers find it hard to expand their farms or invest in improvements.

  • Social Inequality: Unequal land distribution leads to broader social and economic differences among farmers, affecting their quality of life and access to resources.


13. How has the introduction of electricity benefited farmers in Palampur?

Ans: The introduction of electricity has helped farmers in Palampur in several ways.


  • Improved Irrigation: Electric pumps provide a reliable water supply for crops. 

  • Enhanced Productivity: Electricity powers modern machines, making farming more efficient. 

  • Better Storage: It allows for better storage of perishable goods, reducing waste.

  • Increased Opportunities: Electricity supports various non-farming activities, providing extra income.


Overall, electricity has improved farming and created more opportunities for the local economy.


14. Why is it important to increase the area under irrigation?

Ans: Increasing the area under irrigation is important because it helps in many ways.


  • Higher Yields: More irrigated land means better crop production. 

  • Reliable Water: It provides a steady water supply, reducing reliance on unpredictable rainfall. 

  • Soil Health: Regular irrigation maintains soil quality. 

  • Farmer Security: It helps farmers grow crops more reliably, improving their income and food security.


Expanding irrigation helps support better farming and a steady food supply.


15. Why are farm labourers' wages in Palampur lower than the minimum wage?

Ans: Farm labourers’ wages in Palampur are often lower than the minimum wage due to several reasons.


  • Labour Oversupply: There are more labourers than jobs, pushing wages down. 

  • Low Skill Demand: Many farm jobs need few skills, which keeps wages low. 

  • Economic Conditions: Local conditions and few job options contribute to lower wages. 

  • Lack of Regulation: Minimum wage laws might not be enforced properly. These factors result in lower wages for farm workers.


16. What are some ways to increase production on the same piece of land? Provide examples.

Ans: To increase production on the same land, several methods can be used:


  • Multiple Cropping: Grow different crops in one year to make full use of the land.

  • Crop Rotation: Change crops each season to keep the soil healthy.

  • Improved Techniques: Use better farming practices and tools to increase productivity.

  • Soil Management: Add organic matter to improve soil fertility. These methods help make the most of available land and increase overall production.


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

Ans: Medium and Large Farmers often get capital through:


  • Loans: They may take out bank loans or have access to larger credit facilities.

  • Savings: They might use their savings or profits from previous years.

  • Investment: They can invest in modern equipment and technology.


Small Farmers typically have less access to such resources:


  • Limited Loans: They may struggle to get loans or have smaller credit limits.

  • Fewer Savings: They might not have significant savings to invest.

  • Less Investment: They usually invest less in modern equipment.


The difference in access to capital affects their farming efficiency and productivity.


18. Explain the issues farm labourers face in terms of unemployment. Mention three issues.

Ans: Farm labourers face several issues related to unemployment:


  • Seasonal Work: Many farm jobs are only available during certain seasons, leading to unemployment during off-seasons.

  • Low Wages: Inconsistent work and low wages make it difficult for labourers to find stable employment.

  • Lack of Skills: Limited skills and education reduce job opportunities in other sectors. These factors contribute to unemployment and financial instability for farm labourers.


19. What are the drawbacks of modern farming methods?

Ans: Modern farming methods have some drawbacks:


  • High Costs: They often require expensive inputs like chemical fertilisers and machinery.

  • Environmental Impact: The use of chemicals and intensive practices can harm the environment and soil.

  • Dependency: Farmers may become reliant on industrial products and technology.

  • Health Risks: Chemical use can pose health risks to farmers and consumers.


Despite their benefits, these drawbacks can impact both the environment and farming practices.


20. What can be done to start more non-farm production activities in villages?

Ans: To start more non-farm production activities in villages:


  • Training: Provide skill training to villagers for various trades and businesses.

  • Support: Offer financial support or loans to start small businesses.

  • Infrastructure: Improve facilities like roads and markets to support new activities.

  • Encouragement: Promote and invest in local entrepreneurship and crafts.


These steps can help diversify village economies and create additional job opportunities.


21. Which are the kharif and rabi crops grown in Palampur?

Ans: In Palampur, Kharif crops are planted during the monsoon season, which includes rice and jowar. These crops are harvested after the rainy season. Rabi crops are grown in the winter season, such as wheat and barley, and are harvested before the summer. Growing both types of crops helps farmers maximise their production throughout the year by taking advantage of different growing seasons.


22. What does the term Physical Capital mean? Give different types with examples.

Ans: Physical capital refers to the tangible items used in production. Machinery: Equipment like tractors and combine harvesters. Buildings: Structures such as factories and warehouses. Tools: Items like ploughs and hand tools. Vehicles: Trucks and vans used for transporting goods. These assets help improve efficiency and productivity by providing essential support and resources for various production processes.


23. Differentiate between traditional and modern farming methods.

Ans: Traditional farming methods rely on manual labour and natural processes. Farmers use basic tools, depend on rain for irrigation, and grow a variety of crops to keep the soil healthy. Modern farming methods use advanced tools and technology. They include artificial irrigation systems, chemical fertilisers, and high-yield crop varieties. Modern methods aim for higher efficiency and productivity through scientific techniques, while traditional methods focus on sustainable practices with limited technology.


24. How do non-farm activities help Palampur's economy?

Non-farm activities like small businesses, dairy farming, and transport play an important role in Palampur’s economy. These activities provide extra income for villagers and create more job opportunities. For example, dairy farming adds to income through selling milk, while small businesses and transport services meet local needs and help in trade. This variety of jobs and income sources helps improve the village’s economy and living standards.


25. What is the role of markets in Palampur's economy?

Ans: Markets are very important for Palampur’s economy. They are places where villagers can sell their farm products like crops and milk, and buy things they need, such as seeds and tools. Markets help farmers and businesses get their goods to customers and buy what they need. This helps keep the local economy running smoothly and supports the daily needs of the villagers.


26. How does having a good infrastructure help farming in Palampur?

Ans: Good infrastructure like roads, electricity, and irrigation helps farming in Palampur. Roads make it easier to transport goods to markets. Electricity powers machines and irrigation systems, which helps with farming tasks. Irrigation provides a steady water supply for crops, improving their growth. These improvements make farming more efficient, reduce costs, and help increase the amount of crops produced.


27. What are the main problems with traditional farming methods in Palampur?

Ans: Traditional farming in Palampur has several problems.


  • Low Yields: Farmers often get lower crop yields because they use old methods.

  • Rain Dependence: They rely on rain for watering crops, which can be unreliable.

  • Old Tools: They use basic tools, which are less efficient.

  • Soil Issues: Continuous use of the same land can lead to soil problems.


These issues affect how much they can produce and their overall income.


Important Topics of Class 9 Economics Chapter 1 The Story of Village Palampur

Here are key topics from Class 9 Economics Chapter 1, "The Story of Village Palampur." These topics show how the village functions, covering farming and other activities.


S.No

Important Topic 

Explanation

1

Basic Production Activities

This covers how goods and services are made in Palampur, focusing on farming and small businesses.

2

Land Use in Palampur

It explains how land is used for farming and other purposes, and how it’s divided among farmers.

3

Types of Capital

This topic discusses tools and machines used in production and the skills and knowledge of people.

4

Modern vs. Traditional Farming

It compares modern farming with new technology to traditional farming that uses old methods.

5

Impact of Infrastructure

This describes how roads, electricity, and irrigation support farming and make it more efficient.



Benefits of Learning with Class 9 Economics The Story of Village Palampur Important Questions

  • Students learn how goods and services are made, helping them understand how businesses and industries operate.

  • They get to see how land is used and shared among farmers, which helps in understanding agriculture and land management.

  • Knowing about different types of capital, such as tools and skills, shows their importance in running farms and businesses.

  • NCERT Class 9 Economics Chapter 1 Important Questions, understanding the differences between modern and traditional farming helps students see how farming has changed and improved over time.

  • Learning about the role of infrastructure, like roads and irrigation, shows how it supports farming and enhances overall efficiency.


Conclusion

Understanding the NCERT Class 9 Economics Chapter 1 Important Questions, "The Story of Village Palampur," helps students learn about production, land use, and farming methods. Class 9 Economics Chapter 1 Important Questions and Answers knowledge is useful for exams and everyday life. For more help, check out Vedantu for extra explanations, NCERT Solutions and practice questions. Vedantu offers great tools to help you understand the chapter better and improve your exam results. Make use of these resources to strengthen your learning and do well in your studies.


Important Study Materials for Class 9 Economics Chapter 1



CBSE Class 9 Economics Chapter-wise Important Questions




Additional Study Materials for Class 9 Social Science Economics

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FAQs on CBSE Important Questions for Class 9 Social Science Economics The Story of Village Palampur - 2025-26

1. What are the most important topics in 'The Story of Village Palampur' for the CBSE Class 9 exams for 2025-26?

For the 2025-26 exams, students should focus on these key areas from the chapter:

  • The four factors of production: Land, Labour, Physical Capital (Fixed and Working), and Human Capital.
  • Farming in Palampur: Including land distribution, multiple cropping, and the impact of modern farming methods (Green Revolution).
  • Capital for Farming: How small, medium, and large farmers arrange for capital.
  • Non-farm Activities: Understanding economic activities beyond agriculture, such as dairy, transport, and small-scale manufacturing.

Questions are often asked on the differences between traditional and modern farming and the sustainability of land use.

2. What are the four essential requirements for the production of goods and services, as explained in the context of Palampur?

The four essential requirements, or factors of production, are:

  • Land: This includes all natural resources like soil, water, and forests. In Palampur, land is the primary fixed resource for farming.
  • Labour: The people who will do the work. This includes both skilled and unskilled workers, such as farm labourers in Palampur.
  • Physical Capital: The variety of inputs required at every stage of production. It is divided into two types:
    • Fixed Capital: Tools, machines, and buildings that can be used over many years (e.g., tractors, tubewells).
    • Working Capital: Raw materials and money in hand used up in production (e.g., seeds, fertilisers, cash for wages).
  • Human Capital: The knowledge and enterprise required to put together land, labour, and physical capital to produce an output.

3. How do farmers in Palampur grow more than one crop on the same piece of land? What is this practice called?

This practice is called multiple cropping. Farmers in Palampur are able to do this because the village has a well-developed system of irrigation, allowing them to cultivate land throughout the year. For example, during the rainy (kharif) season, they grow jowar and bajra. This is followed by the cultivation of potatoes between October and December. In the winter (rabi) season, they sow wheat. A part of the land is also devoted to sugarcane, which is harvested once every year. This ensures that the land is never idle and productivity is maximised.

4. For a 5-mark question, how would you compare modern and traditional farming methods based on the chapter?

To answer a 5-mark question comparing farming methods, you should structure your answer with a clear distinction between the two:

  • Modern Farming Methods: These rely on High-Yielding Variety (HYV) seeds, chemical fertilisers, pesticides, and assured irrigation through tubewells and canals. This method significantly increases crop yield but is expensive and can harm the environment.
  • Traditional Farming Methods: These use traditional seeds with lower yields, rely on natural manures like cow dung, and depend heavily on monsoon rains for irrigation. This method is more sustainable and less costly but results in lower productivity.

A good answer would also mention the Green Revolution as the turning point that introduced modern farming to India and discuss its long-term impact on soil fertility and the water table in Palampur.

5. Why are wages for farm labourers in Palampur often less than the minimum wages set by the government?

Wages for farm labourers in Palampur are often below the legal minimum wage primarily due to heavy competition for work. There are many landless families and small farmers who are willing to work for lower wages because the demand for labour is limited and seasonal. This oversupply of labour gives large farmers the power to negotiate wages down. The work is not available throughout the year, so labourers accept whatever wage is offered to secure employment, even if it is below the government-mandated rate.

6. How is capital arranged by small farmers in Palampur, and how does it differ from that of large farmers?

There is a significant difference in how capital is arranged:

  • Small Farmers: They often lack savings and must borrow money to buy inputs like seeds and fertilisers. They typically take loans from large farmers or village moneylenders who charge a very high rate of interest, trapping them in a cycle of debt.
  • Medium and Large Farmers: They usually have their own savings from the sale of surplus farm produce from previous seasons. They use these savings as their working capital and do not need to borrow. They may even have enough surplus to lend money to small farmers.

7. 'The Green Revolution is associated with the loss of soil fertility.' How can this be a frequently asked exam question from this chapter?

This is a crucial higher-order thinking (HOTS) question because it tests your understanding of the negative consequences of modern farming. The key points to include are:

  • The continuous use of chemical fertilisers has destroyed soil bacteria and microorganisms, leading to a degradation of soil quality and fertility.
  • Overuse of irrigation from tubewells has led to a sharp depletion of the water table in many areas.
  • Once depleted, natural resources like soil fertility and groundwater are very difficult and slow to restore, raising serious questions about the sustainability of modern agricultural practices.

8. What are some of the important non-farm production activities taking place in Palampur?

While farming is the main activity, several non-farm activities also provide income for the villagers. Important ones include:

  • Dairy: Many families own buffaloes and sell milk in the nearby large village, Raiganj.
  • Small-Scale Manufacturing: This is done on a very basic level, mostly at home or in the fields with family labour. A common example is jaggery (gur) production from sugarcane.
  • Shopkeeping: General stores in the village sell a wide range of items like rice, wheat, sugar, soap, and stationery.
  • Transport: A variety of vehicles like rickshaws, jeeps, tractors, and bullock carts operate on the road connecting Palampur to Raiganj, transporting people and goods.

9. How does the unequal distribution of land in Palampur create a cycle of poverty for small farmers and labourers?

The unequal distribution of land is a core cause of economic disparity in Palampur. Here’s how it creates a cycle of poverty:

  • Limited Income for Small Farmers: Small plots of land produce very little surplus, so the income generated is just enough for family consumption, leaving no savings for the next season.
  • Dependence on Loans: To farm their small plots, they must take high-interest loans from large farmers or moneylenders, leading to debt.
  • Source of Cheap Labour: To repay loans or supplement their income, small farmers and their families often have to work as labourers on the farms of large landowners, creating a large pool of cheap labour that keeps wages low for everyone.

This system ensures that large farmers grow wealthier from their surplus and money-lending, while small farmers and landless labourers remain trapped in poverty.