NCERT Economics Class 9 Chapter 1 | Organisation of Production Notes & PDF

Topics Covered

Topic covered: Introduction and Organisation of Production and MCQs Questions: The Story of Village Palampur (All single detail notes are exam-oriented).

We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 9th about the “Organisation of Production“ from the NCERT Economics notes for class 9th chapter 1 “The Story of Village Palampur“.

Download the NCERT Economics for Class 9th Chapter 1 The Story of Village Palampur Notes PDF

Class 9 Economics begins with Chapter 1: The Story of Village Palampur, which sets the base for understanding how production works in real life. This chapter explains land, labor, capital, and organization of production using Palampur as a simple example. Students often get confused between fixed capital and working capital or how multiple cropping boosts production. To make these ideas clear, I’ve prepared concise notes that break down each concept with easy explanations. You can download the NCERT Economics for Class 9th Chapter 1 The Story of Village Palampur Notes PDF and use it for revision, assignments, or last-minute exam prep.

Introduction to Village Palampur

Scene of a village - NCERT Economics Class 9 Chapter 1 Organisation of Production Notes & PDF - E-book NCERT — Source: NCERT Book

1. Location and Connectivity:

Palampur is well-connected with nearby villages and towns.
Raiganj – a big village, located 3 km from Palampur.
Shahpur – nearest small town, connected via Raiganj.
An all-weather road links Palampur to Raiganj and Shahpur.

2. Transport in Palampur:

Many types of transport are seen on the road:
a. Traditional transport – bullock carts, tongas, bogeys (buffalo-drawn wooden carts).
b. Modern transport – motorcycles, jeeps, tractors, trucks.
Bogeys often loaded with jaggery (gur) and other goods.

3. Population and Caste Structure:

About 450 families live in Palampur.
Upper caste families – 80 in number, own most of the land. Houses are larger, built of brick with cement plaster.
SC (Dalit) families – form about one-third of the population.
a. Live in one corner of the village.
b. Houses are smaller, some made of mud and straw.

4. Facilities in Palampur:

Electricity – most houses connected.
a. Powers tubewells for irrigation.
b. Also used in small businesses.
Education – two primary schools and one high school.
Health facilities –
a. A government-run primary health centre.
b. One private dispensary.

5. Development Features:

Palampur has a fairly well-developed system of:
a. Roads
b. Transport
c. Electricity
d. Irrigation
e. Schools
f. Health centres

6. Purpose of the Palampur Story:

Palampur is an imaginary village used for study purposes.
Shows how production activities are carried out in rural India.
Farming – main production activity.
Non-farm activities – small manufacturing, transport, shop-keeping, etc.
Next focus: learn about general aspects of production before studying farm and non-farm activities.

Organisation of Production

1. Aim of Production:

Main aim of production – to produce goods and services that people want.

2. Four Requirements (Factors of Production):

A. Land

Includes all natural resources like water, forests, and minerals.
Land is the base on which production activities take place.

B. Labour

Refers to people who do the work in production.
Two types:
a. Skilled labour – highly educated or trained workers (example: doctor, engineer, technician).
b. Unskilled labour – workers doing manual tasks (example: farmer, construction worker).
Every worker contributes some form of labour necessary for production.

C. Physical Capital

Means all man-made inputs required during production.
Two categories:
a. Fixed Capital:
i. Tools, machines, buildings.
ii. Used for years in production.
iii. Examples: farmer’s plough, turbines, generators, computers, factories.
b. Working Capital:
i. Raw materials and money in hand.
ii. Used up during production.
iii. Examples: yarn for a weaver, clay for a potter, money for daily purchases or wages.

D. Human Capital

Refers to knowledge and enterprise.
Needed to put together land, labour, and physical capital to produce goods/services.
Modern importance – emphasised in today’s production systems where skill and entrepreneurship matter.

3. Factors of Production – Final Note

Land + Labour + Physical Capital + Human Capital – Factors of Production.
Every production activity is organised by combining these four.
In this chapter – focus is mainly on land, labour, and physical capital.
For convenience – physical capital will be referred to simply as capital.

Next & Previous Topics of NCERT/CBSE Economics Class 9 Chapter 1: The Story of Village Palampur

Topics No.	Topics Name
1	Organisation of Production
2	Farming in Palampur
	Non-Farm Activities in Palampur

MCQs on NCERT Economics Class 9 Chapter 1 Topic – Organisation of Production

Here are the top exam-oriented MCQ-type questions on “Organisation of Production” that you should prepare for your CBSE or state board exams:

Question 1. How far is Raiganj from Palampur?

a) 1 km
b) 2 km
c) 3 km
d) 5 km

Answer: c) 3 km

Question 2. Which small town is connected to Palampur through Raiganj?

a) Meerut
b) Shahpur
c) Lucknow
d) Kanpur

Answer: b) Shahpur

Question 3. Which among the following vehicles is not mentioned as a means of transport in Palampur?

a) Bullock carts
b) Tongas
c) Aeroplanes
d) Jeeps

Answer: c) Aeroplanes

Question 4. How many families are there in Palampur?

a) 200
b) 300
c) 400
d) 450

Answer: d) 450

Question 5. Who own the majority of land in Palampur?

a) Middle caste families
b) SC (Dalit) families
c) 80 upper caste families
d) Landless labourers

Answer: c) 80 upper caste families

Question 6. Where do the SCs (dalits) of Palampur live?

a) In the centre of the village
b) In one corner of the village
c) Near the school
d) Near the health centre

Answer: b) In one corner of the village

Question 7. What type of houses do most upper caste families in Palampur have?

a) Mud houses with straw roofs
b) Large brick houses with cement plastering
c) Bamboo huts
d) Small mud huts

Answer: b) Large brick houses with cement plastering

Question 8. What is the role of electricity in Palampur?

a) Only used for lighting homes
b) Used to run tubewells and small businesses
c) Only for schools
d) Only for dispensary

Answer: b) Used to run tubewells and small businesses

Question 9. How many schools are there in Palampur?

a) One primary school
b) Two primary schools and one high school
c) One high school only
d) Two high schools

Answer: b) Two primary schools and one high school

Question 10. Which medical facilities are available in Palampur?

a) Only a private dispensary
b) Only a government hospital
c) A government primary health centre and a private dispensary
d) None

Answer: c) A government primary health centre and a private dispensary

Question 11. How many factors of production are there?

a) Two
b) Three
c) Four
d) Five

Answer: c) Four

Question 12. Which of the following is the first requirement of production?

a) Land
b) Labour
c) Capital
d) Knowledge

Answer: a) Land

Question 13. Which factor of production refers to people who will do the work?

a) Land
b) Labour
c) Capital
d) Enterprise

Answer: b) Labour

Question 14. Tools, machines and buildings are part of which type of capital?

a) Working capital
b) Fixed capital
c) Human capital
d) Natural capital

Answer: b) Fixed capital

Question 15. Which of the following is an example of working capital?

a) A tractor
b) A plough
c) Money in hand
d) A generator

Answer: c) Money in hand

Question 16. Which of the following is used up in production?

a) Tools
b) Machines
c) Raw materials
d) Buildings

Answer: c) Raw materials

Question 17. Which capital can be used for many years in production?