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Chapter 1. The Story of Village Palampur : Production activities in Palampur Economics class 9th:English Medium NCERT Book Solutions

NCERT Books Subjects for class 9th Hindi Medium

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Chapter 1. The Story of Village Palampur


Production activities in Palampur


  • Palampur is not a real village but this is a hypothetical village. 
  • to introduce some basic concepts relating to production there for it is taken Palampur as hypothetical village.
  • The story of Palampur, an imaginary village.
  • Electricity powers all the tubewells in the fields and is used in various types of small business.
  • Farming is the main production activity.
  • The aim of production is to produce the goods and services that we want.
  • Every production is organised by combining land, labour, physical capital and human capital, which are known as factors of production.
  • Generally Rabi and Kharif crops are grown in palam pur but due to the well developed system of irrigation. Electricity came early to Palampur. The farmer able to grow three different crops in a years. 

The main production activities in Palampur:

(i) Farming 

(ii) Small sclae manufacturing

(iii) Dairy 

(iv) Transport 

(v) Animal husbandry

Resources used in production activities: 

(i) Natural resources 

(ii) Manmade items

(iii) Human effort

(iv) Money etc.

Neighbouring Villages and Town of Palampur: 

Palampur is well-connected with neighbouring villages and towns. Raiganj, a big village, is 3 kms from Palampur. An all weather road connects the village to Raiganj and further on to the nearest small town of Shahpur.

Means of Transportation in Palampur:

Non-motor Vehicles: 

bullock carts, tongas, bogeys (wooden cart drawn by buffalos) loaded with jaggery

Motor Vehicles: 

Motor vehicles like motorcycles, jeeps, tractors and trucks.

Pupulation of Palampur:

This village has about 450 families belonging to several different castes. The 80 upper caste families own the majority of land in the village.

Features of houses and Buildings in Palampur: 

(i) Their houses, some of them quite large, are made of brick with cement plastering.

(ii) Most of the houses have electric connections.

(iii) Palampur has fairly well-developed system of roads, transport, electricity, irrigation, schools and health centre.

Social structure of people In Palampur: 

This village has about 450 families belonging to several different castes. The 80 upper caste families own the majority of land in the village. The SCs (dalits) comprise one third of the population and live in one corner of the village and in much smaller houses some of which are of mud and straw. 

Infrastructure for Education and health: 

Palampur has two primary schools and one high school. There is a primary health centre run by the government and one private dispensary where the sick are treated. Palampur has fairly well-developed system of roads, transport, electricity, irrigation, schools and health centre.

Production activities as Non farming activities: 

(i) Small manufacturing

(ii) Transport

(iii) Shop-keeping

Requirements for production of goods and services: 

(i) Natural resources : lands, water, forests and minerals etc. 

(ii) Labour : 

(iii) Physical capital : Tools, machines, buildings, raw materials and money in hand

(iv) Knowledge and enterprise as human capital. 

Physical capital : The variety of inputs required at every stage during production in our daily life like tools, machines,buildings, raw materials and money in hands these all together called physical capital. 

Fixed Capital : Tools, machines, buildings are used in production over many years, and
are called fixed capital.

Working Capital : Raw materials and money in hand are called working capital.

Differences between Fixed capital and Working capital: 

Fixed capital Working capital
1. These are used in production over many years. 1. These capitals finished during the production activities. 
2. Examples: Tools, machines, buildings  2. Examples: Raw materials and money in hand 

Factors of productions: 

Factors of productions are as followings:

(i) Land

(ii) Labour

(iii) Physical capital
(iv) Human capital

Livelohood of people in Palampur: 

Farming is the main production activity in Palampur. 75 per cent of the people who are working are dependent on farming for their livelihood. They could be farmers or farm labourers. The wellbeing of these people is closely related to production on the farms.


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