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SAI INTERNATIONAL SCHOOL
SESSION 2020-21
CLASS-IX

ECONOMICS- Ch-1- STORY OF VILLAGE PALAMPUR

LESSON NOTES
SUB-TOPIC- 1
(Overview, Organisation of production)

Overview
• Palampur was a hypothetical village.
• In Palampur, farming was the main activity.
• The village also has several other activities such as small-scale manufacturing, dairy,
transport, etc, carried out on a limited scale.
Introduction

• Palampur is fairly connected with a well-developed system of roads, transport,
electricity, irrigation, schools and health centres.
• The story of Palampur takes us through the different types of production activities in
the village. In India, farming is the main production activity across villages.

Organisation of Production

The main aim of production is to produce goods and services that we want or need. The

factors of production are:

1. LAND- this forms the base for any kind of production or construction. It includes land

and other natural resources such as water, forests, minerals.
2. LABOUR- The work or the effort that the people put in to get a salary or wage in return.

Labour can be both skilled and unskilled.

3. CAPITAL
i) Physical Capital- The variety of inputs required at various stages of

production.
a) Fixed Capital- The amount of these capital remains constant throughout

the production process. Ex- Tools, machines, buildings etc.