Class 10 The Productive Mechanism Mock Test (ICSE)

Topics in The Productive Mechanism

• Factors of production: land, labour, capital and entrepreneur
• Land: characteristics and productivity
• Labour: division of labour and efficiency
• Capital: formation and types
• Entrepreneur: functions and role in development

The Productive Mechanism practice questions with answers

1. Q1Multiple choice·1 mark
   What is the primary economic advantage of introducing the division of labour in a manufacturing unit?

   1. (a)It makes every worker responsible for the entire production process.
   2. (b)It completely eliminates the need for machinery.
   3. (c)It leads to specialization and higher efficiency.
   4. (d)It increases monotony for workers.
   Show answer and step marks

   1. Correct option: (c) It leads to specialization and higher efficiency.+1

   Answer: (c)
2. Q2Multiple choice·1 mark
   Which of the following represents circulating capital in a business enterprise?

   1. (a)Raw materials
   2. (b)Office furniture
   3. (c)Heavy machinery
   4. (d)Factory building
   Show answer and step marks

   1. Correct option: (a) Raw materials+1

   Answer: (a)
3. Q3Multiple choice·1 mark
   Which of the following best describes the 'acquired productivity' of land?

   1. (a)The advantage derived purely from the geographical location or proximity of the land plot to markets.
   2. (b)The increase in output resulting from capital investments such as fertilizers, irrigation, and drainage.
   3. (c)The passive nature of land that requires human labour to become productive.
   4. (d)The inherent fertility present in the soil naturally without any human intervention.
   Show answer and step marks

   1. Correct option: (b) The increase in output resulting from capital investments such as fertilizers, irrigation, and drainage.+1

   Answer: (b)
4. Q4Short answer·2 marks
   Name the four factors of production recognized in economic theory.
   Show answer and step marks

   1. Land.+0.5
   2. Labour.+0.5
   3. Capital.+0.5
   4. Entrepreneur (also called organisation or enterprise).+0.5

   Answer: Land, Labour, Capital and Entrepreneur (organisation).
5. Q5Long answer·4 marks
   Land is considered a primary and passive factor of production with distinct economic features. (a) State any two peculiar characteristics of land. (b) Explain any two factors that determine the productivity of land.
   Show answer and step marks

   1. (a) First characteristic, any one of: Land is a free gift of nature with no cost of production for society; land is fixed (limited) in total supply; land is geographically immobile; land is permanent and indestructible in its basic powers; land differs in fertility and situation from plot to plot; or any other valid characteristic.+1
   2. (a) Second characteristic, a different one from the same list.+1
   3. (b) First factor, any one of: natural fertility of the soil; favourable climate and topography; location of the land (nearness to markets and transport); application of capital such as irrigation, fertilisers and improved seeds; use of modern technology and better farming methods; efficiency and skill of the cultivator; or any other valid factor.+1
   4. (b) Second factor, a different one from the same list.+1

   Answer: (a) Any two of: land is a free gift of nature, fixed in supply, geographically immobile, permanent, and varies in fertility. (b) Any two of: natural fertility of the soil, climate and topography, location, application of capital (irrigation, fertilisers, improved seeds), modern technology, efficiency of the cultivator.
6. Q6Long answer·4 marks
   Land is a unique factor of production with distinct features compared to labour or capital. (a) Explain any two distinctive characteristics of land as a factor of production. [2] (b) State and explain any two economic or physical factors that help in determining the productivity of land. [2]
   Show answer and step marks

   1. (a) First characteristic, explained, any one of: Land is a free gift of nature with no cost of production for society; land is fixed (limited) in total supply; land is geographically immobile; land is permanent and indestructible in its basic powers; land differs in fertility and situation from plot to plot; or any other valid characteristic.+1
   2. (a) Second characteristic, a different one from the same list.+1
   3. (b) First factor, explained, any one of: natural fertility of the soil; favourable climate and topography; location of the land (nearness to markets and transport); application of capital such as irrigation, fertilisers and improved seeds; use of modern technology and better farming methods; efficiency and skill of the cultivator; or any other valid factor.+1
   4. (b) Second factor, a different one from the same list.+1

   Answer: (a) Any two of: land is a free gift of nature, limited (fixed) in supply, geographically immobile, permanent and indestructible, and varies in fertility. (b) Any two of: natural soil fertility, climate and topography, location, investment of capital (irrigation, fertilisers), modern technology, skill and efficiency of the labour working on it.

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