Economics Class 9 Chapter 1 Notes PDF - FREE Download
The Story Of Village Palampur Class 9 Notes: CBSE Economics Chapter 1
FAQs on The Story Of Village Palampur Class 9 Notes: CBSE Economics Chapter 1
1. What is the main purpose of studying 'The Story of Village Palampur' for Class 9 revision?
The story of Palampur is a hypothetical case study designed to help students quickly revise the fundamental concepts of production and economics. It provides a simple framework to understand how different resources like land, labour, and capital are organised to produce goods and services within a typical Indian village setting, covering both farming and non-farming activities.
2. What are the four essential factors of production as explained in the Palampur story?
For a quick revision, the four factors of production organised in Palampur are:
- Land: The primary natural resource, which is fixed and includes agricultural fields, forests, and water.
- Labour: The human effort involved, provided by farmers and landless labourers.
- Physical Capital: Man-made inputs, which are further divided into fixed capital (like tractors, buildings) and working capital (like seeds, cash).
- Human Capital: The knowledge and enterprise required to combine the other three factors to produce an output.
3. How do farmers in Palampur increase crop yield from the same piece of land?
The notes on Palampur highlight two main methods for increasing farm output from a fixed area of land:
- Multiple Cropping: This involves growing more than one crop on the same plot of land during the year. For example, farmers in Palampur grow jowar and bajra during the rainy season, followed by potato and then wheat.
- Modern Farming Methods: This method uses inputs like High-Yielding Variety (HYV) seeds, chemical fertilisers, pesticides, and assured irrigation (from tube wells) to significantly boost productivity per hectare.
4. How did the Green Revolution impact farming practices in Palampur?
The Green Revolution fundamentally changed agriculture in Palampur by introducing farmers to modern farming methods. It led to the adoption of High-Yielding Variety (HYV) seeds, especially for wheat, which dramatically increased crop yields from 1300 kg to 3200 kg per hectare. This also increased the demand for chemical fertilisers, pesticides, and reliable irrigation, making farming more capital-intensive.
5. What was the role of electricity in transforming the village economy of Palampur?
The early arrival of electricity in Palampur was a key driver of its development. Its primary impact was on irrigation, as it powered electric-run tube wells that could irrigate large areas of land more efficiently than traditional methods. This enabled reliable multiple cropping and supported the success of modern farming. Electricity also spurred the growth of various small non-farm businesses.
6. How does the management of surplus farm products differ between large and small farmers?
In Palampur, there is a clear distinction. Large farmers, like Tejpal Singh, produce a substantial surplus which they sell in the market. They use the earnings to save, lend money, or buy more fixed capital like tractors, thus increasing their wealth. In contrast, small farmers have very little surplus. Whatever they produce is mostly used for their own family's consumption, leaving them with little to no extra income for savings or investment.
7. Why do farm labourers in Palampur often agree to work for wages lower than the minimum wage?
Farm labourers in Palampur face intense competition for work, which drives wages down. This is mainly because there are many landless families (about 150) competing for a limited number of jobs on the farms of medium and large landowners. The work is also seasonal, leading to periods of unemployment. This high supply of labour and limited demand gives employers the power to set low wages.
8. What is the key difference between fixed capital and working capital for a farmer in Palampur?
The key difference lies in their use and lifespan. Fixed capital refers to durable assets that can be used in production over many years, such as tractors, ploughs, tools, and tube wells. Working capital, on the other hand, consists of raw materials and money that are used up during a single production cycle, like HYV seeds, fertilisers, pesticides, and the cash needed to pay for them.
9. How are farming and non-farming activities in Palampur interconnected?
The farming and non-farming sectors in Palampur are closely linked. Non-farm activities like dairy farming use fodder crops (jowar, bajra) grown on farms. Small-scale manufacturing, such as making jaggery, processes sugarcane, a farm product. Furthermore, transport services like rickshaws and jeeps earn money by moving agricultural goods to markets and bringing industrial goods back to the village, creating a self-sustaining local economy.
10. What are the main non-farm production activities mentioned in the notes for Palampur?
Besides farming, the notes for Palampur describe several other economic activities that provide livelihoods. A quick summary of these non-farm activities includes:
- Dairy Farming: Villagers keep buffaloes and sell milk in nearby towns.
- Small-Scale Manufacturing: Simple production methods are used, such as sugarcane crushing to make jaggery.
- Shopkeeping: General stores sell a variety of items to the villagers.
- Transport: A fast-developing sector involving rickshaws, tongas, jeeps, and tractors that ferry people and goods.

















