Question 1 - MCQ Questions - 1 Mark - Chapter 1 Class 9 Economics - The Story of Village Palampur - Economics

Farmer’s plough is an example of which factor of  production?  

(a) Natural resource  

(b) Fixed physical capital  

(c) Human capital  

(d) Variable capital

Answer: 

So, the correct answer is (b).

Explanation:

• Tools and machine range from simple tools such as the farmer’s plough to sophisticated machines such as generators, turbines, computers, etc.
• Tools, machines, and buildings can be used in production over many years , and are called fixed capital.

Let’s check all the options

• (a) Natural resource- Natural resources are resources that are drawn from nature and used with few modifications.
• (b) Fixed physical capital- Tools, machines, and buildings can be used in production over many years , and are called fixed capital.
• (c) Human capital- Knowledge and enterprise to put together land, labor, and physical capital and produce an output. It is called human capital.
• (d) Variable capital- Variable capital means the proportion of capital that is invested in wages, and in the purchase of labor-power.

Since farmers' plough can be used for production over many years , it is a f ixed physical capital . Thus, option (b) is correct.