Samacheer Class 7 Social Science - Production

Utility
2. Derived factors are ………….. and ……………..
Capital,Organisation3. …………. is a fixed in supply.
Land
4. …………….. is the human input into the production process.
Labour5. ………………… is the man made physical goods used to produce other goods and services.
Capital

1. Primary production
b) fishing, mining
2. Time utility
d) stored for future
3. Wealth of nation
a) Adam Smith
4. Human capital
e) education, health
5. Innovator
c) entrepreneur

Alfred Marshall defines labour as, ‘the use of body or mind, partly or wholly, with a view to secure an income apart from the pleasure derived from the work’.

Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of labour or a set of labourers, who are specialists in that particular process.

Physical Capital or Material Resources, Ex. Machinery, tools, buildings, etc.
Money capital or Monetary resources, Ex. Bank deposits, shares and securities, etc.
Human capital or Human Resources Ex. Investments in education, training, and health

There are three types of production
Primary production
Secondary production
Tertiary or service production
1. Primary Production:
Primary production is industries that are extracting the gifts of nature from the earth’s surface and oceans.
Ex: fishing, mining, agriculture.
2. Secondary Production:
It is the manufacturing industry, conversion of raw material into finished good.
Ex: Manufacture of clothes, cars and chemicals.
3. Tertiary production:
In the tertiary sector, all those services enable the finished goods to be put in the hands of consumers.
Ex: Banking, transport, and communications.

Land is a factor of production and natural resource.
Characteristics of Land:
Land is a Free Gift of Nature:
Land is not the outcome of human labour.
It existed even long before the evolution of man.
Land is fixed in supply:
The land quantity does not undergo any change and no alteration can be made.
It is limited, increased or decreased by human efforts.
Land is imperishable
The land is not destructible and imperishable.
Land is a primary factor of production
In any kind of production process, start with land. Land provides raw materials and crops for industry.
Land is immovable:
Land cannot be transported from one place to another place.
Land has some original Indestructible powers
The indestructible powers of land cannot be destroyed by man.
Land Differs in Fertility:
Fertility of land differs on different places of land.
One piece of land may produce more and the other less.

Merits of the division of labour
Division of Labour improves the efficiency of Labour.
Time and Materials are put to the best and most efficient use.
Use of Machinery in production, resulting in inventions.
Demerits:
Repetition of the same work makes labour to feel monotonous and stale.
Narrow Specialization reduces to find alternative avenues of employment. This results in increased unemployment.
Reduce the growth of handicrafts and the worker losed satisfaction.

Capital is a passive factor of production
Capital is manmade
Capital is not an indispensable factor of production
Capital has the highest mobility
Capital is productivity
Capital lasts over time.
Capital involves a present sacrifice to get future benefits.7th Social Science Guide Production Additional Important Questions and Answers

c) tertiary sector
II.Fill in the blanks:
1. There are two kinds of people ……………….. and ……………….
producers, consumers
2. Indian Economy is a ………………. economy.
mixed3. …………….. of Land differs in different places of the land.
Fertility
4. Capital means ………………
money5. The entrepreneur is also called ………………..
organizer
6. ………….are called factors of production.
Inputs7. The concept ‘Division of labour’ was introduced by ……………………..
Adam Smith
8. The factors for production are …………….., ………….., ………………..
land, labour, capital9. ………….means want satisfying power of a product.
utility.
10. In the Secondary production …………………. getting more importance.
Manufacturing
11. Secondary production is also known as ……………………..
Construction12. Tertiary production is also known as ………………………
Service production
13. …………….. cannot be separate for the labourer.
labour14. …………… is a passive factor of production.
Capital
15. Sugarcane is a ……………..plant.
money

There are two kinds of factors responsible for production.
Primary factors
Derived Factors
Primary Factors:
The primary Factors are land and labour. These are naturally given and without them, no goods can be produced.
Derived Factors:
Derived factors are capital and organization. These derived factors, when combined with the primary factors of production raise total production.

Labour is not homogenous. Skill and dexterity vary from person to person.
Labour cannot be separated from labourer.
Labour is like mobile moving from one place to another for occupation.
Individual labour has only limited bargaining power. In the Trade union, Labour power increases.