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Samacheer Kalvi 7th Social Science Production Exercise Solutions

Complete TN Class 7 Social Science Production exercise solutions with detailed answers, MCQs, fill in blanks, short and long answers.

Updated 12 June 202614 min read

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Production -- Exercise Solutions

How to Use This Page

This page provides complete, exam-ready solutions for the Production chapter from the Samacheer Kalvi Class 7 Social Science textbook (Economics, Term 1, Chapter 1). Solve each exercise question on your own first, then compare your answers here. Every question is answered with full explanations so you understand the reasoning, not just the final answer.

Key Concepts (Quick Recap)

  • Production: The process of combining various material and immaterial inputs to create something for consumption -- it is the creation of utilities.
  • Utility: The want-satisfying power of a product. Three types: Form Utility, Time Utility, and Place Utility.
  • Factors of Production: Four factors -- Land, Labour, Capital, and Organisation (Entrepreneurship). Land and Labour are primary factors; Capital and Organisation are derived factors.
  • Land: A free gift of nature, fixed in supply, immovable, and differs in fertility.
  • Labour: Human input into the production process; cannot be separated from the labourer; varies in skill and dexterity.
  • Capital: Man-made physical goods used to produce other goods and services. Exists in three forms: Physical Capital, Money Capital, and Human Capital.
  • Division of Labour: Dividing the production process into distinct component processes, each assigned to specialists.
  • Entrepreneur: Also called the organiser; identifies opportunities, takes risks, innovates, and coordinates all other factors.
  • Types of Production: Primary (extraction), Secondary (manufacturing), and Tertiary (services).
  • Mixed Economy: An economy where both private and public sectors coexist (e.g., India).

Exercise Solutions

I. Choose the Correct Answer (MCQs)

Q1. Production refers to \_\_\_\_\_\_\_\_\_\_.

  • a) Destruction of utility
  • b) Creation of utilities
  • c) Exchange value
  • d) None of these
Answerb) Creation of utilities ✓

Q2. Utilities are in the nature of \_\_\_\_\_\_\_\_\_\_\_.

  • a) Form utility
  • b) Time utility
  • c) Place utility
  • d) All of these
Answerd) All of these ✓

Q3. Primary factors are \_\_\_\_\_\_\_\_\_\_\_.

  • a) Land, capital
  • b) Capital, labour
  • c) Land, labour
  • d) None of these
Answerc) Land, labour ✓

Q4. The entrepreneur is also called \_\_\_\_\_\_\_\_\_\_\_.

  • a) Exchanger
  • b) Agent
  • c) Organiser
  • d) Communicator
Answerc) Organiser ✓

Q5. Banking comes under which type of production?

  • a) Primary
  • b) Secondary
  • c) Tertiary
  • d) Mixed
Answerc) Tertiary ✓

Q6. The father of Economics is \_\_\_\_\_\_\_\_\_\_\_.

  • a) Adam Smith
  • b) John Marshall
  • c) Malthus
  • d) John Renier
Answera) Adam Smith ✓

Q7. The book "Wealth of Nations" was written in the year \_\_\_\_\_\_\_\_\_\_\_.

  • a) 1770
  • b) 1774
  • c) 1776
  • d) 1789
Answerc) 1776 ✓

Q8. The concept of Division of Labour was introduced by \_\_\_\_\_\_\_\_\_\_\_.

  • a) Adam Smith
  • b) John Marshall
  • c) M.N. Roy
  • d) Dadabhai Naoroji
Answera) Adam Smith ✓

Q9. Most of the Gross Domestic Product of our country is contributed by the \_\_\_\_\_\_\_\_\_\_\_.

  • a) Primary sector
  • b) Secondary sector
  • c) Tertiary sector
  • d) Mixed sector
Answerc) Tertiary sector ✓

II. Fill in the Blanks

Q1. \_\_\_\_\_\_\_\_\_\_\_ means the want-satisfying power of a product.

AnswerUtility

Q2. Derived factors are \_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_.

AnswerCapital, Organisation

Q3. \_\_\_\_\_\_\_\_\_\_\_ is fixed in supply.

AnswerLand

Q4. \_\_\_\_\_\_\_\_\_\_\_ is the human input into the production process.

AnswerLabour

Q5. \_\_\_\_\_\_\_\_\_\_\_ is the man-made physical goods used to produce other goods and services.

AnswerCapital

Q6. There are two kinds of people: \_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_.

AnswerProducers, consumers

Q7. Indian Economy is a \_\_\_\_\_\_\_\_\_\_\_ economy.

AnswerMixed

Q8. \_\_\_\_\_\_\_\_\_\_\_ of land differs in different places.

AnswerFertility

Q9. Capital means \_\_\_\_\_\_\_\_\_\_\_.

AnswerMoney

Q10. The entrepreneur is also called \_\_\_\_\_\_\_\_\_\_\_.

AnswerOrganiser

Q11. \_\_\_\_\_\_\_\_\_\_\_ are called factors of production.

AnswerInputs

Q12. The concept "Division of Labour" was introduced by \_\_\_\_\_\_\_\_\_\_\_.

AnswerAdam Smith

Q13. The factors of production are \_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_, and \_\_\_\_\_\_\_\_\_\_\_.

AnswerLand, Labour, Capital (and Organisation)

Q14. In Secondary production, \_\_\_\_\_\_\_\_\_\_\_ is getting more importance.

AnswerManufacturing

Q15. Secondary production is also known as \_\_\_\_\_\_\_\_\_\_\_.

AnswerConstruction

Q16. Tertiary production is also known as \_\_\_\_\_\_\_\_\_\_\_.

AnswerService production

Q17. \_\_\_\_\_\_\_\_\_\_\_ cannot be separated from the labourer.

AnswerLabour

Q18. \_\_\_\_\_\_\_\_\_\_\_ is a passive factor of production.

AnswerCapital

III. Match the Following

Match A -- Textbook Questions

1. Primary productionb) Fishing, mining ✓
2. Time utilityd) Stored for future ✓
3. Wealth of Nationa) Adam Smith ✓
4. Human capitale) Education, health ✓
5. Innovatorc) Entrepreneur ✓

Match B -- Additional Questions

1. Secondary productionb) Conversion of flour into bread ✓
2. Tertiary Productiond) Transport ✓
3. Money capitale) Monetary Resources ✓
4. Wheata) Time utility ✓
5. Cotton Industryc) Making clothes ✓

IV. True or False

Q1. The total quantity of land does not undergo any change.

AnswerTrue ✓ (Land is fixed in supply and its total quantity cannot be changed by human effort.)

Q2. Manufacture of cars comes under the primary sector.

AnswerFalse ✓ (Manufacture of cars comes under the secondary sector, as it involves converting raw materials into finished goods.)

V. Consider the Following Statements

Q1. Consider the following statements: 1. Land is movable 2. Land differs in fertility 3. Land has some original indestructible powers 4. Land is perishable

Which of the above are correct?

  • a) 1 and 2
  • b) 2 and 3
  • c) 3 and 4
  • d) 4 and 1
Answerb) 2 and 3 ✓ (Land is immovable, not perishable; it differs in fertility and has original indestructible powers.)

VI. Very Short Answers (1-2 sentences)

Q1. What is production?

AnswerProduction is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is essentially the creation of utilities.

Q2. What is utility?

AnswerUtility means the want-satisfying power of a product. It is the ability of a good or service to satisfy a human want.

Q3. Name the types of utility.

AnswerThe three types of utility are Form Utility, Time Utility, and Place Utility.

Q4. What are the factors of production?

AnswerThe four factors of production are Land, Labour, Capital, and Organisation (Entrepreneurship).

Q5. Define Labour.

AnswerAlfred 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."

Q6. Define Division of Labour.

AnswerDivision of labour means dividing the production process into distinct component processes and assigning each to specialists in that particular process.

Q7. Write the forms of capital.

AnswerThe three forms of capital are: (1) Physical Capital / Material Resources (machinery, tools, buildings), (2) Money Capital / Monetary Resources (bank deposits, shares, securities), and (3) Human Capital / Human Resources (education, training, health).

Q8. Write three characteristics of an entrepreneur.

AnswerAn entrepreneur identifies profitable investible opportunities, decides the location of the production unit, makes innovations, decides reward payments, and takes risks and faces uncertainties.

Q9. What is place utility? Give an example.

AnswerPlace utility is created when a commodity is transported from one place to another so that its utility increases. Example: If rice is transported from Kerala to Tamil Nadu, its utility will be more in Tamil Nadu.

Q10. What is a mixed economy?

AnswerA mixed economy is one where both the private and public sectors exist and operate together. Example: The Indian economy is a mixed economy.

Q11. Point out the feature of form utility.

AnswerForm utility is created when the physical form of a commodity is changed, increasing its utility. Example: Cotton's utility increases when it is converted into cloth.

VII. Short Answers (3-5 sentences)

Q1. Explain the types of production.

AnswerThere are three types of production:

1. Primary Production: This involves extracting or harvesting gifts of nature from the earth's surface and oceans. Activities include agriculture, fishing, mining, and forestry. These provide raw materials for further production.

2. Secondary Production: This involves the manufacturing or conversion of raw materials into finished goods. Activities include the manufacture of clothes, cars, chemicals, and construction. This sector adds form utility to raw materials.

3. Tertiary Production: This includes all services that enable finished goods to reach consumers. Activities include banking, transport, communications, insurance, and education. This sector facilitates distribution and consumption.

Q2. What is land? What are the characteristics of land?

AnswerLand is a factor of production and a natural resource. Its key characteristics are:

1. Free Gift of Nature: Land is not the outcome of human labour; it existed before mankind. 2. Fixed in Supply: The total quantity of land does not undergo any change; it is limited by human efforts. 3. Imperishable: Land is not destructible; it cannot be destroyed. 4. Primary Factor of Production: All production starts with land; it provides the raw materials needed. 5. Immovable: Land cannot be transported from one place to another. 6. Original Indestructible Powers: Land has inherent qualities that cannot be destroyed by man. 7. Differs in Fertility: Fertility varies across different pieces of land.

Q3. Explain the merits and demerits of division of labour.

Answer

Merits:

  • Improves efficiency of labour as workers specialise in specific tasks
  • Time and materials are put to the best and most efficient use
  • Encourages the use of machinery in production, leading to inventions and innovations
  • Increases total output and productivity

Demerits

  • Repetition makes labour feel monotonous and stale
  • Narrow specialization reduces alternative employment avenues, increasing unemployment risk
  • Reduces the growth of handicrafts; the worker loses satisfaction from creating a complete product
  • Over-dependence on a single skill makes workers vulnerable to industry changes

Q4. Describe the characteristics of capital.

AnswerThe key characteristics of capital are:

1. Passive Factor of Production: Capital by itself cannot produce anything; it needs to be combined with land and labour. 2. Man-made: Capital is created by human effort and did not exist naturally. 3. Not Indispensable: While capital enhances production, production can theoretically occur without it (though very inefficiently). 4. Highest Mobility: Capital can be moved from one place to another and from one use to another more easily than land or labour. 5. Productivity: Capital increases the productivity of other factors of production. 6. Lasts Over Time: Capital goods like machinery and buildings have a productive life spanning many years. 7. Present Sacrifice for Future Benefit: Capital formation requires saving today to invest for future returns.

VIII. Detailed Answers (Paragraph-length, well-structured)

Q1. Explain the factors of production in detail.

AnswerThe factors of production are the inputs used to produce goods and services. They are classified into two categories:

Primary Factors:

1. Land: Land is a free gift of nature and includes all natural resources. It is fixed in supply, immovable, imperishable, and differs in fertility. It provides the raw materials and space needed for all production.

2. Labour: Labour is the human input into the production process. As defined by Alfred Marshall, it is "the use of body or mind, partly or wholly, with a view to secure an income apart from the pleasure derived from the work." Labour is not homogenous -- skill and dexterity vary from person to person. It cannot be separated from the labourer, and individual labour has limited bargaining power, though this increases through trade unions.

Derived Factors:

3. Capital: Capital is man-made physical goods used to produce other goods and services. It exists in three forms: Physical Capital (machinery, tools, buildings), Money Capital (bank deposits, shares, securities), and Human Capital (investments in education, training, and health). Capital is a passive but highly mobile factor of production.

4. Organisation (Entrepreneurship): The entrepreneur is also called the organiser. The entrepreneur identifies profitable opportunities, decides the location of the production unit, makes innovations, decides reward payments for other factors, and takes risks and faces uncertainties. The entrepreneur coordinates all other factors of production and is the driving force behind business activity.

Q2. Describe the characteristics of labour in detail.

AnswerLabour as a factor of production has several distinctive characteristics:

1. Not Homogenous: Skill and dexterity vary from person to person. A doctor's labour is different from a carpenter's labour, and even within the same profession, productivity differs.

2. Inseparable from the Labourer: Labour cannot be separated from the worker. The worker and the work are united. This means the labourer must be present for labour to be performed.

3. Mobile: Labour is mobile and can move from one place to another for occupation. Workers migrate from rural to urban areas or between countries for better opportunities.

4. Limited Bargaining Power Individually: An individual labourer has only limited bargaining power. However, when workers unite in trade unions, their collective bargaining power increases significantly.

5. Perishable: Labour cannot be stored. A day's labour that is not used is lost forever. It cannot be saved for later use like capital.

6. Active Factor: Unlike land and capital which are passive, labour is an active factor of production that initiates and drives the production process.

7. Varies in Efficiency: The efficiency of labour depends on the worker's health, education, training, motivation, and working conditions.

Common Mistakes

1. Confusing primary and derived factors: Land and Labour are primary (naturally given) factors; Capital and Organisation are derived (created) factors. Do not swap them. 2. Mixing up types of utility: Form utility = changing physical form (cotton to cloth), Time utility = storing for future (wheat stored), Place utility = transporting (rice from Kerala to Tamil Nadu). Each has a distinct definition. 3. Calling capital an active factor: Capital is a passive factor -- it cannot produce anything on its own. Labour is the active factor. 4. Forgetting Organisation as a factor of production: Many students list only Land, Labour, and Capital. The fourth factor, Organisation (Entrepreneurship), is equally important. 5. Confusing Secondary and Tertiary production: Secondary = manufacturing/converting raw materials (clothes, cars); Tertiary = services (banking, transport, communications). Manufacturing is NOT tertiary. 6. Saying land is movable: Land is immovable. It cannot be transported from one place to another. 7. Writing that division of labour only has merits: Always mention both merits (efficiency, use of machinery) and demerits (monotony, narrow specialization, unemployment risk) in exam answers.

Exam Checklist

  • [ ] I can define production and utility correctly
  • [ ] I can list and explain the three types of utility (Form, Time, Place) with examples
  • [ ] I can name all four factors of production and classify them as primary or derived
  • [ ] I can list and explain the characteristics of Land (7 characteristics)
  • [ ] I can define Labour and explain its characteristics (7 characteristics)
  • [ ] I can explain the three forms of Capital (Physical, Money, Human)
  • [ ] I can describe the role and characteristics of an Entrepreneur/Organiser
  • [ ] I can explain the merits and demerits of Division of Labour
  • [ ] I can distinguish between Primary, Secondary, and Tertiary production with examples
  • [ ] I can define Mixed Economy and give India as an example
  • [ ] I can fill in all blanks and match all columns correctly
  • [ ] I can write detailed paragraph answers on the factors of production and characteristics of labour

Frequently Asked Questions

The four factors of production are Land, Labour, Capital, and Organisation (Entrepreneurship). Land and Labour are primary factors, while Capital and Organisation are derived factors.