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Q41 (CDS-I/2022) Economy › Agriculture & Rural Economy › Rural development policy Answer Verified

Which one of the following inputs is required in less quantity in case of non-farming activities ?

Result
Your answer: —  Â·  Correct: A
Explanation

In the context of rural economic activities, land is a fixed and scarce factor of production, particularly for farming where it is the primary requirement [3]. Farming is land-intensive, requiring vast areas for cultivation, whereas non-farm activities such as small-scale manufacturing, transport, and shop-keeping require relatively little land [2]. While non-farm activities are essential for rural development, they rely more heavily on capital and labor rather than extensive physical space [2]. Capital is often a scarce factor for small entrepreneurs, requiring loans for setup, and labor remains an abundant factor in villages [3]. However, unlike agriculture where land is the fundamental base, non-farm sectors can be established on small plots or within existing buildings, making land the input required in the least quantity compared to its massive requirement in traditional farming [4].

Sources

  1. [1] Economics, Class IX . NCERT(Revised ed 2025) > Chapter 1: The Story of Village Palampur > Let's discuss the story so far.... > p. 10
  2. [3] Economics, Class IX . NCERT(Revised ed 2025) > Chapter 1: The Story of Village Palampur > Let's discuss the story so far.... > p. 9
  3. [2] Economics, Class IX . NCERT(Revised ed 2025) > Chapter 1: The Story of Village Palampur > Summary > p. 13
  4. [4] https://ncert.nic.in/textbook/pdf/iess201.pdf
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