Factors of Production Class 8 Notes Social Science Chapter 7

Reviewing Class 8 SST Notes Chapter 7 Factors of Production Class 8 Notes regularly helps in retaining important facts.

Class 8 Factors of Production Notes

Class 8 SST Chapter 7 Factors of Production Notes

Class 8 SST Chapter 7 Notes – Factors of Production Notes Class 8

Introduction

→ Everything around us, our clothes, furniture, wallet, electronic appliances, school bag, etc., has undergone a production process and is created using specific resources or raw materials, known as inputs.

→ The resources used in the production process of goods and services are called the factors of production.

→ Various businesses and organisations combine these inputs to create high-quality products and services, fostering job opportunities and driving numerous economic activities.

→ The factors of production are categorised into four main types – land, labour, capital, and entrepreneurship.

→ Technology is also considered a vital element as it enables businesses and ventures to produce more goods using fewer inputs (raw materials), thereby improving efficiency.

Factors of Production (Land, Labour, Capital, and Entrepreneurship)

Land (Natural Resources)

→ In economics, the term ‘land’ refers not only to geographical land but also to natural resources such as water, soil, minerals, oil, forests, and natural gases.

→ Nature provides us with many resources, and it is our responsibility to determine how to use them sustainably.

→ Businesses and ventures require land to build manufacturing plants (factories), office buildings, warehouses, or to grow agricultural produce needed for their products, which they either purchase or rent.

Labour (Human Resources)

→ Labour is the soul of production. It refers to human effort used in production, involving both physical and mental effort.

→ Many professionals like teachers, doctors, engineers, farmers, carpenters, and construction workers use their knowledge, skill, and physical strength to help fulfill basic and essential needs of society.

People as a Resource (Human Capital)

→ Human beings are essential to economic activities as they apply their knowledge and skills to add value and quality to work.

→ For example, farmers grow crops using their skill and experience, and scientists invent new technologies.

→ Human capital refers to the skills, knowledge, abilities, and expertise that individuals use to perform labour in the production process.

→ Hence, human capital is not only about basic labour but also includes the quality and efficiency of that labour.

Facilitators of Human Capital

Education and training

→ Education helps individuals acquire knowledge in specific fields of their interest.

→ Even basic literacy boosts understanding and prepares people to face real-world challenges.

→ For example, a medical student gains knowledge and gets training to treat patients.

→ Creating a sustainable and cost-effective infrastructure requires training, skill, and expertise in a particular field.

→ Experience and improvement in any type of work come through training, observation, and proper guidance.

→ With the right education and proper training, individuals can be well-prepared to excel in their careers.

Healthcare

→ Healthcare is important as it supports children’s brain development, helps them focus on their studies, and reduces absenteeism in class.

→ Similarly, workers also need to have good health and a sound body to be efficient and to give their best, physically and mentally.

→ For example, a healthy employee is likely to miss fewer workdays and be more creative and productive at the workplace.

Social and Cultural Influences

→ Societies that encourage hard work and discipline help strengthen human capital and improve individual performance.

→ People constantly try to improve in their work or field, which increases productivity and boosts their contribution to the economic development of the country.

→ A famous Japanese concept called kaizen means ‘continuous improvement’, which has helped Japan achieve a high standard of living for its people.

→ In Germany, there is a strong work ethic that values punctuality, attention to detail, and quality, leading to high-quality industrial output.

→ These qualities, along with strong human capital and work ethics, have helped both Japan and Germany become global leaders in technology and manufacturing.

Challenges to Human Capital

→ Literacy enhances the knowledge, skill, expertise, and productivity of human capital.

→ As per the World Bank, Adult Literacy Rate of India (2023), for males it was approximately 85% while for females it was around 70%.

→ India is still facing challenges in improving and advancing its human capital.

→ According to the Economic Survey of India 2024, about 66% of India’s population is under the age of 35. This provides a great opportunity to benefit from the demographic dividend a large number of young, working, and earning population.

→ To fully utilize this potential, it is important to provide quality education, proper healthcare, and skill training so that the youth can actively contribute to the nation’s development.

India’s Ancient Skill Heritage

→ For Indians, work was a form of expression expressing their nature, making a continuous effort to achieve a flawless outcome.

→ Indians were truly devoted to their work, as there is evidence of them worshiping tools during Vishwakarma Puja or Ayudha Puja.

→ Products were created with kala (art) and uidya (knowledge). The Shilpa Shastras are ancient texts containing designs and guidelines for creating successful and beautiful products.

Stitched Shipbuilding

→ Over 2,000 years ago, Indians built ships by stitching wooden planks together with cords instead of using nails, which made the vessels more flexible.

→ These ships enabled India to become a key player in maritime trade, facilitating cultural exchange across the Indian Ocean.

Capital

→ Capital (Machinery, tools, money, and raw materials) is considered oxygen for any business or startup.

→ Personal savings, family or friends’ funds, or bank loans are the first source of funds that support individuals when they start a business.

→ Once their business has expanded, they look for investors who would put money into their business idea in exchange for a partnership or share in profit.

→ The stock market is a special type of market where large companies raise funds by offering shares to the public. People who buy these shares become shareholders of the company.

→ The shareholders could get a certain percentage of profit through dividends.

→ Companies invest the funds(money) in advanced tools and machinery to speed up the production process and produce new goods and services.

Entrepreneurship

→ Entrepreneurship means building your own business or creating innovative services by turning an idea or thought into something useful.

→ For instance, Paytm was started a few years ago by an entrepreneur, through which one could make online payments efficiently.

→ The person who brings up an idea filled with risks and uncertainty, yet determined to face the hurdles and develop his vision, is known as an entrepreneur.

→ The new business, started by an entrepreneur, is called his startup.

→ Entrepreneurship plays a vital role in introducing new services, creating several job opportunities and innovations, and contributing to societal and economic growth.

Technology: An Enabler of Production

→ Technology means using science in the real world to solve problems or create something innovative, making things or human life work better.

→ For example, electric vehicles use electric power instead of fuel and help reduce pollution.

→ Production activities demand some sort of technology to invent new services and expand the functioning efficiently.

→ Today, many fields have seen great advancements in technology. For instance, UPI has replaced regular cash transactions, farmers can get accurate weather forecast and GPS helps us find the most convenient routes for trade and travel.

→ New technology helps businesses work better and save time. For instance, using email system instead of postal services allows a quick communication at lower cost with less effort.

→ Moreover, some old tools like pulleys and wheelbarrows are still very useful and haven’t been replaced even today.

Technology Paving the Way for Accessing Knowledge, Skills, and Job Opportunities

→ Government introduced various online learning platforms such as SWAYAM that offers many courses starting from school level, enabling topics like robotics, aquaculture, and textile printing.

→ Other platforms like ‘National Career Service’ help individuals connect to jobs in wide range of industries.

→ These portals eliminate physical boundaries and allow access opportunities both nationally l and internationally.

How are the Factors Connected?

→ The production relies on five key factors – land, labour, capital, technology and entrepreneurship.

→ The quantity or quality of these factors depends on the product’s requirement.

→ For instance, agriculture is labour intensive as it demands more field workers, on the other hand electronic field is capital intensive as it requires many machinery and tools.

→ These factors are interconnected and their misuse can obstruct the production.

→ Advance technologies might cause change in the proportion of production and labour requirements. For instance, a 3D Printer can produce handloom-like products on a large scale, reducing the need for human labour.

→ The availability of resources or raw materials varies from place to place and is organised by companies involved in production.

→ Businesses gather these resources from various locations and use them together to produce goods and services.

→ The supply chain is a network of people, organisations, resources, and technology that work together to produce and sell goods.

→ The disturbance in the supply chain takes place due to less priority to local raw materials and reliance on distant resources, as seen widely during the COVID-19 pandemic.

→ Human effort is crucial for production as a team of several people with different expertise develops a product and manages its marketing (e.g., electricians, mechanical engineers, and project managers work together to provide a service).

Responsibilities towards Factors of Production

→ Production process depends on natural resources such as land, water, and minerals. These resources are limited and can be harmed if not managed responsibly.

→ For instance, the leather hubs in Tamil Nadu boost economy but damage water sources and soil qualities as well. Similarly, if electronic waste is not recycled properly, harmful substances like lead and mercury can leak into the ground and contaminate water sources.

→ The sustainable use of sources is crucial to ensure next generations can efficiently meet their needs and exist in a safe environment.

→ Manufacturers should implement eco-friendly methods to conserve and recycle resources.

→ Ventures are not only responsible to the environment but for their workers as well.

→ Employers must offer fair pay, safe workplace and a good working experience to their workers.

→ Through CSR (Corporate Social Responsibility), businesses address environmental and social concerns by taking care of local communities, biodiversity, employees and their customers.

→ Production Process: The steps taken to create new goods and services.

→ Resources: Required raw materials, to make a product.

→ Final Product: The final item that is ready to be sold.

→ Equipment: The tools or machinery, required to make a product.

→ Ingredients: Items we need to create something new.

→ Businesses: Companies that make or sell goods or provide services to earn money.

→ Inputs: Raw materials.

→ Opportunities: Chances that help people gain or make something better.

→ Economic Activities: Activities that are done to earn money like farming or creating items.

→ Land: Geographical fields or natural resources like soil, forests, water, air, minerals, oil etc. are called land.

→ Labour: Human workers required to do works are called Labours.

→ Capital: The money, tool, or machineiy required for a business or startup to function efficiently.

→ Entrepreneurship: Setting up your own business.

→ Facilitator: An individual who provides a service or organises a procedure easily.

→ Economic encompasses: Everything related to jobs, money, businesses and opportunities.

→ Decision-making: To choose one thing out of several different options.

→ Human Capital: The human labour required to produce or create something new.

→ Specialised: Trained for a particular task.

→ Skill: The ability to do something extraordinary.

→ Basic literacy: The ability to read and write.

→ Expertise: The skill or knowledge required to create or refine something.

→ Infrastructure: The basic structure or building needed for the functioning of a company or a society.

→ Durable: Something that can last long.

→ Cost-efficient: Providing goods and services at a reasonable price.

→ Training: Process of learning a skill with hands-on experience.

→ Cognitive development: The progress or change in children’s thinking process.

→ Creative: Someone who can think of new and useful ideas.

→ Endeavouring: To try hard to do something/toil.

→ Manufacturing: The process of transforming inputs into finished outputs.

→ Productivity: The amount of produced outputs expressed by numbers or as a percentage.

→ Adult Literacy Rate: The percent of adults who have basic literacy and can read and write simple sentences.

→ Productive: Do a lot of useful work.

→ Demographic Dividend: A state where the working-age population (15-65) is larger than the dependent population.

→ Potential: The capacity of doing something.

→ Contribute: Support something to grow or develop.

→ Workmanship: The hard work and skill used to innovate something.

→ Operations: The process of making a product in an enterprise or business.

→ Enterprises: The large organizations that innovate something.

→ Shortfall: Not enough or insufficient.

→ Interest: The amount of money paid to the creditor by the borrower.

→ Stock market: A special market where large companies raise funds by selling shares to people.

→ Dividend: The amount of money paid to shareholders from a share of the profits.

→ Financial capital: Money used to start a business.

→ Mechanism: A system or process of creating goods or services.

→ Entrepreneur: A person who takes risks to set up a business or a venture.

→ Startup: a new business.

→ Innovative: Something very interesting and problem solving.

→ Application: To add or implement something.

→ Aquaculture: The process of raising and harvesting aquatic animals and plants.

→ Semiconductor: An electric conductor that intermediate between a conductor and an insulator.

→ Capital intensive: A product or service that needs a lot of money and machinery to be made.

→ Interconnected: Having some particular parts related to each other.

→ Supply Chain: The individuals, organisations, resources and technology involved in making a product.

→ Disruption: A break down or halt in the production process.

→ Sustainable: Something that is designed to have less effect on the environment.

→ Discrimination: To treat someone differently because of their race, cast or religion.

→ Land, labour, capital, and entrepreneurship are factors of production that are used in a particular proportion to produce goods and services. These factors complement each other and are interconnected.

→ Human capital is the knowledge, skills, experience, and ability of individuals that contribute to their ability to perform work and create economic value.

→ It is influenced by education, training, health, use of technology, and social context that make people more productive in the workforce.

→ The resources help in the production of goods and services that serve society and need to be preserved and utilised judiciously.

→ Everything we see and use in our daily lives, from a pencil to a smartphone, is made from some kind of raw material or resource.

• The resources needed to make these things are officially called the “factors of production.”
• When businesses combine these factors, they create jobs and many different economic activities that help society function.
• There are four main categories of factors of production— land, labour, capital and entrepreneurship.
• Technology is seen as a coordinator in production that enables businesses to produce more goods, using fewer resources.

Factors Of Production (Land, Labour, Capital & Entrepreneurship)
Land (natural resources)

• Land includes physical space (factories, offices, farms) and natural resources like water, forests, minerals, and fish.
• Example: Silk from silkworms is a natural resource used to produce silk sarees.
• Nature provides us numerous resources and we should use them sustainaniy.
• Businesses need land to build factories, office or warehouses which iney often buy or rent.

Labour (human resources)

• Labour is the human effort—physical or mental—put into production, jb + Examples: builders, electricians, plumbers, doctors, teachers.
• Along with physical strength and knowledge, skill also play an important role in production, adding value to the work.

People As A Resource

• Human beings are the core of economic activities as they add value and quality through their knowledge and skills.
• Example: Farmers use experience to grow crops, and scientists create new technologies.
• Human capital means the collective skills, abilities, and expertise of individuals in the workforce.
• Healthy and skilled people form a strong base of human capital.
• Thus, human capital is not just about labour quantity, but also about its quality and efficiency.

Facilitators Of Human Capital
Education and Training

• Education provides knowledge in chosen fields and prepares people to face challenges.
• Even basic literacy improves understanding and problem-solving.
• Example: An engineer trains for years to be abie to build a strong infrastructure.
  Building sustainable infrastructure requires skill, training, and expertise.
• Improvement in very work comes through practice, observation, and proper guidance.
• With the right education and training, individuals can excel in their careers.

Healthcare

• Healthcare supports children’s brain development, helps them study better, and reduces absenteeism.
• Similarly, workers with good health are physically and mentally fit, efficient, and productive.
• Example: A healthy employee takes fewer leaves and performs better at work.

Social And Cultural Influence

• Societies that value discipline, hard work, and improvement build strong human capital.
• People continuously strive to get better, which boosts productivity and national growth.
• Example: Japan follows the principle of Kaizen (continuous improvement), which has raised living standards.
• Germany emphasizes punctuality, quality, and attention to detail, resulting in strong industrial output.
• These values, combined with human capital, have made Japan and Germany global leaders in technology and manufacturing.

Challenges To Human Capital

• Education builds skills, knowledge, and productivity.
• In 2023, Adult Literacy Rate of India was about 85% for males and 70% for females.
• India still faces challenges in improving human capital.
• With 66% population under 35 years, India has a young workforce, and to use this potential, the youth must get quality education, healthcare, and training.

Capital

• Capital includes machinery, tools, money, and raw materials, is vital for any business or startup.
• Atthe beginning, entrepreneurs usually depend on personal savings, financial help from family or friends, or bank loans.
• As the business grows, they seek investors who provide funds in return for partnership or a share of the profit.
• Large companies raise money through the stock market by selling shares to the public, making the buyers shareholders in the business.
• Shareholders earn a portion of the company’s profit In the form of dividends. Businesses use these funds to buy advanced machinery and tools.

Entrepreneurship

• Entrepreneurship means building a business or creating innovative services.
• Example: The invention of robotic vacuum cleaner solved the problem of cleaning by saving time.
• An entrepreneur is someone who takes risks, faces challenges, and works with determination to bring their vision to life.
• Entrepreneurship introduces creative ideas, new services and various job opportunities, contributing to the economic growth of the country.

Technology: An Enabler Of Production

• Technology is the application of science to solve problems and improve life.
• Almost all production activities today require technology.
• Examples: UPI has replaced cash transactions, weather apps help farmers, GPS enables smoother travel and trade.
• Technology reduces time and cost—for instance, emails are faster and cheaper than postal mail.

How Are The Factors Connected?

• The production depends on five key factors – land, labour, capital, technology and entrepreneurship.
• The quantity and type of these factors vary according to the product requirement.
• These factors are interconnected and if used in wrong proportions can hinder the production.
• Advanced technologies can change the balance between production and labour needs. For instance, online payment systems have reduced the need for manpower in handling cash transactions at banks.
• The supply chain refers to the entire system of individuals, organisations, resources, and technology involved in moving a product from its creation to the final consumer.
• Supply chain disruptions arise from neglecting local resources and relying too much on distant ones, as seen during COVID-19.
• Human effort is vital for production, as people with different skills—such as electricians, engineers, and managers—work together to create and market a product.

Responsibilities Towrds Factors Of Production

• The production process relies on natural resources like land, water, and minerals. Since these are limited, they can be easily damaged if not used responsibly.
• For instance, the leather hubs in Tamil Nadu contribute to the economy but also harm water sources and soil quality.
• Manufacturers should adopt eco-friendly methods to conserve and recycle resources, while also ensuring responsibility towards both the environment and their workers.
• Employers should give fair pay and a safe workplace and a positive work environment.
• Through CSR (Corporate Social Responsibility), businesses also support communities, protect nature, and care for their workers and customers.

Introduction of Factors of Production Class 8 Notes

Have you ever wondered how your clothes, shoes, school bag, furniture, phone, computer, etc., are made? Every product around you goes through a production process before it finally reaches you. This production process involves using resources or inputs required to produce the final product. The resources or inputs used in producing goods and services are hence called factors of production.

Meet Ratna, who runs a small restaurant named Pause Point, on the city outskirts. Popular among highway travellers for its tasty, high-quality food, Pause Point is growing with a team of seven people who assist Ratna in managing the business. When she started five years ago, she had to choose a location, organise money for rent and equipment, hire staff, buy ingredients, and plan how to make her dream a success.

Businesses combine various inputs or factors of production to create goods and services, which also generate opportunities for people to engage in economic activities. In economics, the inputs used in a production process or the factors of production are classified into four types: land, labour, capital, and entrepreneurship. Technology is a facilitator and a crucial factor that enables businesses to produce more goods with the same or fewer inputs. Let’s learn more about these inputs in the sections ahead!

Factors of Production Class 8 Notes

Land (Natural Resources)
The word ‘land’ in economics encompasses not only geographical land but also natural resources like soil, forests, water, air, sunlight, minerals, oil, and natural gas. Recollect the chapter on Natural Resources and Their Use, where we discussed different types of resources that nature has given to us and how we use them. Businesses either purchase the required land or pay rent to use it for a period of time.

Labour (Human Resources)
Labour is essential in production, involving physical and mental effort. Carpenters, farmers, construction workers, teachers, and doctors use varying levels of physical strength, knowledge, and skill. Everyone contributes differently through their work, helping create goods and services for society’s needs.

People as a Resource
Human beings play a key role in economic activities and production processes as they apply their knowledge, skills, and decision-making abilities to create goods and services. For example, a police officer maintains law and order, a scientist invents new technologies, a chef develops new recipes, etc. They all require a special set of knowledge and skills to perform well. Of course, they all must be dedicated to their work to do a good job. The word labour refers to the physical and mental effort used in production. However, human capital refers to the specialised skills, knowledge, abilities, and expertise required to perform that labour. Thus, human capital is not just the basic efforts of labour but also the quality and efficiency of that labour.

Facilitators of Human Capital Class 8 Notes

Education and Training
Education helps individuals gain knowledge, starting with basic literacy and extending to expertise in specific fields. What you learn in school enriches your knowledge and prepares you to solve real-world problems. For example, a civil engineering student learns principles of design and materials, which are applied to building infrastructure like roads and bridges. The challenge lies in creating durable, cost-efficient, and eco-friendly solutions. This is achieved through training, such as observing construction sites, testing materials, understanding safety procedures, and hands-on application. With education and training, individuals are prepared to excel in their careers.
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Healthcare
Good health supports cognitive development, allowing children to attend school regularly and learn better. Similarly, workers can give their best, physically and mentally, when they are of sound body. They can do more in shorter periods, be creative, and do not have to be away from work due to ill health.

Social and Cultural Influences
A culture of hard work, continuous improvement, and endeavouring to do things well has helped countries to move forward. There is a Japanese concept called kaizen, which means ‘continuous improvement’. This concept has been applied in Japan since the mid-1940s and has helped Japan achieve higher standards of living for its people. Another example could be that of the German work ethic, which is deeply rooted in their history. Germany is renowned for its high-quality industrial output. They place a high value on punctuality, attention to detail, and quality. These qualities of their human capital contributed to their rise as a global leader in technology and manufacturing.

Challenges to Human Capital
Our nation has come a long way in various aspects of human capital since independence. Literacy is an important characteristic of the population and helps enhance the skills and productivity of human capital. The Adult Literacy Rate in India is 85 per cent for males and 70 per cent for females as of 2023, as per the World Bank estimates. Despite progress in many areas, India faces challenges in developing human capital.

According to the Economic Survey of India 2024, 65 per cent of people in India are below the age of 35 years. This means that India has a young, productive population, which may help the country reap the benefits of a demographic dividend. The demographic dividend refers to the benefit a country gets when it has a large number of young and working people. When more people are working and earning, and fewer people depend on them, the country can grow businesses and improve living standards. To take advantage of this potential, individuals must have access to quality education, health, training, and skilling, which would contribute to the nation’s progress. You will learn more about this in the year ahead in the chapter on Demographics. Today, there is a vast variety of jobs requiring diffrent kinds of skills. However, India has had a rich legacy of skill-based knowledge systems and workmanship.

India’s Ancient Skill Heritage
For ancient Indians, work was a form of expressing their nature and striving for perfection, an offering to the deity or the receiver, as the case may be. It had to be created or done with devotion. The tools (a type of technology) used were worshipped; this tradition continues as Vishwakarma Puja or Ayudha Puja. So, creating products involved a unique blend of kala (art) and vidya (knowledge). Knowledge was passed on from generation to generation, and also built on. The Shilpa Shastras are ancient texts that contain detailed design guidelines on sculptures, paintings, buildings, wooden items, and jewellery. For example, texts on sculpture prescribe exact specifications regarding postures, colours, measurements, and proportions of figures. Generations of families of sculptors have worked on constructing India’s temples over centuries. They used their skills without expecting to see the finished outcome. They pursued excellence, considering work as worship by practising regularly and learning new techniques.

Stitched Shipbuilding
Indians used a unique stitching technique dating back over 2000 years to make ships and boats, which they used to conduct maritime trade and cultural exchanges across the Indian Ocean. The technique involved stitching wooden planks together using cords instead of nails, which made them flexible and helped the ships navigate the Indian Ocean with ease.

Capital
Businesses also require capital that comprises monetary resources and durable assets like machinery, tools, equipment, vehicles, vending carts, computers, shops, factories, office buildings, etc., for their day-to-day operations. Just as Ratna would have required money to take the land on lease, buy the furniture and kitchen equipment, etc. These are all called ‘capital’ money plus human-made resources that are used to produce goods and services.

Capital is essential to a manufacturing unit or a services sector enterprise. But where do businesses get the capital? Generally, personal savings, family, and friends are the first source of funds and support for individuals when they start a business, just as Ratna did when she started her business. However, the funds were insufficient for Ratna to start the business, so she took a loan from the bank to meet the shortfall. She paid interest along with a part of her loan amount over a period of time. Similarly, large companies require a lot of money to expand their business; hence, they raise money from the general public through the stock market. The stock market is a special type of market where shares are bought and sold. Large companies raise money from the public by offering them a share of the profits, called a dividend. In other words, big businesses can raise money or financial capital through such a market and can sell shares of their business. You will learn the exact mechanism of how this works in the higher grades.

Entrepreneurship
Entrepreneurship means starting your own business or creating something new to solve a problem. An entrepreneur is a person who comes up with an idea, takes risks, gathers other factors of production, and works hard to make their startup idea successful.

An entrepreneur’s vision for solving a problem helps bring innovative products and services to the market that benefit society and the nation. At the same time, they also create job opportunities and support livelihoods. In return, they derive a deep sense of satisfaction from seeing their dreams become a reality and serving the people. Thus, an entrepreneur is one who:

The man who dreamed big for India: J.R.D. Tata – Entrepreneur, Industrialist, and Philanthropist
Jehangir Ratanji Dadabhoy (J.R.D.) Tata was one of India’s greatest entrepreneurs and played a big role in building modern India. He was born in 1904 and became the head of the Tata Group, one of the largest business groups in the country. He believed that businesses should not only make money but also help society. He started India’s first airline, Tata Airlines, in 1932, which later became Air India. Under his leadership, the Tata Group expanded into many areas like steel, cars, power, and chemicals. J.R.D. Tata was also known for caring about his workers and believed in providing them with good working conditions. He was a man of vision, hard work, and honesty. In 1992, he received the Bharat Ratna, India’s highest civilian award, for his great service to the nation.

Technology: An Enabler of Production Class 8 Notes

Technology means the application of scientific knowledge. For example, a camera converts light into electrical signals to create a digital image. Any production-related activity uses some form of technology. Some early forms of technology that have existed since ancient times are still in use today. Today, newer and advanced technological developments are applied in various areas, making our lives easier. For example, payments can be made at the click of a button through UPI (Unified Payments Interface); farmers can get advance weather updates; Global Positioning Systems (GPS) can discover the shortest routes for transporting goods, and so on.

Have you noticed how old technology gets replaced by a new, better one? This process makes it easier for people and businesses to get things done and improve how they work. For example, instead of sending letters by post, we now use email to communicate with people quickly and at a lower cost. However, remember that technological progress does not always mean replacing old technologies; some, like pulleys and wheelbarrows, are still in use. Now, let’s look at examples of how technology is helping students learn, build new skills, and find jobs.

Technology is paving the way for accessing knowledge, skills, and job opportunities
A variety of online courses are available to students through Government platforms like SWAYAM (Study Webs of Active Learning for Young Aspiring Minds), which offers courses for Grade 9 onwards and operates on Massive Open Online Courses (MOOCs) through which learners can explore subjects like robotics, aquaculture, textile printing, and so on that are free of cost. Students benefit from learning at their own pace, from anywhere, while pursuing other jobs or courses.

Online portals, like the Government’s National Career Service, help people find job opportunities across various sectors, from plumbing to accounting. This is how technology has eliminated geographical barriers, allowing people access to knowledge, skill development, and jobs in India and abroad. The services to these online portals can be accessed through the following links:

• https://swayam.gov.in/
• https://www.ncs.gov.in/

How are the Factors Connected? Class 8 Notes

The factors land, labour, capital, entrepreneurship, and technology are combined to produce goods and services, and the proportion of each factor used depends on the product. For example, output from the agriculture, construction, and handicraft sectors relies more on labour and thus is labor-intensive, while semiconductor chips or satellites require more capital, specialised machinery, and are capital-intensive. These factors complement each other and are interconnected; in case of some missing or misused factors, production can become inefficient or can be halted. However, in some cases, new techniques can change the proportion used and output. For instance, increased machine use in agriculture can lower dependence on labour.

Similarly, 3-D printing can help revive the dying art forms in textiles by producing handloom products at a large scale to serve the market. The production inputs are available at diffrent geographic locations. Businesses can procure them from these varied locations and combine the inputs to produce goods and services. Thus, the geographic interconnectedness provides businesses with access to varied inputs. However, production activities sometimes face severe supply chain challenges. The supply chain is a network of individuals, organisations, resources, activities, and technology that are involved in the production and sale of goods.

When a disruption in the supply chain occurs due to relying on sources from far-off places, instead of local inputs, it results in a halt in the production process, as was the case during the COVID-19 pandemic. India is the world’s second-largest mobile phone manufacturer after China in 2025! Let’s understand these ideas through a flow chart depicting mobile phone manufacturing.

Human effort is involved at every stage of production to design, supervise, and improve products and processes. For example, teams of software, electrical, and mechanical engineers, along with project managers, use their expertise to develop a product. The entrepreneur provides guidance on how resources should be used. Then, procuring resources like land, factory space, machinery, and skilled workers requires financial resources. Together, all these inputs are essential, working like puzzle pieces to create the goods and services we rely on!

Responsibilities towards Factors of Production Class 8 Notes

When we produce goods, we use natural resources like land, water, and minerals. However, these resources are limited and can be harmed if we are not careful. For example, in Tamil Nadu, many people earn money by working in leather factories. This helps the local economy, but the waste from these factories can pollute rivers and soil. In the same way, when old smartphones are not recycled properly, harmful substances like lead and mercury can leak into the ground and water. This pollution can be dangerous for people, animals, and plants. That is why it is important for producers to use natural resources responsibly so that we can meet our needs today without making it harder for future generations to meet theirs. They should try to reduce waste, avoid pollution, and protect the environment while making products. So, producers need to adopt sustainable practices to replenish natural resources for future use.

Apart from land and natural resources, businesses have responsibilities towards their workers and employees, which are summarised below.

• Fair Compensation and Working Conditions: Employers need to ensure that workers are paid fairly for their labour and that they work in a safe environment.
• Skill Development and Training: There is a responsibility to invest in training and education to ensure that workers develop the skills necessary to remain competitive in the labour market.
• Workplace Rights and Protections: Laws and regulations for workers’ rights relating to fair treatment, preventing discrimination, and providing benefits like health care or paid leave should be adhered to.

Businesses are motivated to address social and environmental concerns in their operations to benefit society and biodiversity through Corporate Social Responsibility (CSR). This includes reducing polluting activities, addressing the well-being of local communities, treating employees and customers with respect, and so on. India was the first nation in the world to bring a Corporate Social Responsibility law in 2014 that mandated companies to spend 2 per cent of their average profits of the last three years on CSR activities.

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