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CBSE · Class 8 · Social Science

Factors of Production

Standard difficulty · 20 questions · 40 marks

Name: Date: Score: ____ / 40

Write full answers in Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
In economics, “land” includes:
  1. only buildings
  2. only money
  3. only farmland
  4. all natural resources such as soil, water and minerals
2.
Which factor of production is a carpenter’s work?
  1. technology
  2. entrepreneurship
  3. labour
  4. capital
3.
Which term means money paid for borrowing money?
  1. kaizen
  2. dividend
  3. interest
  4. human capital
4.
What does “supply chain” mean?
  1. the network that makes and delivers a product
  2. a share of profits paid to shareholders
  3. continuous improvement
  4. doing more in a given time
5.
A company’s profits over three years were ₹120 crore, ₹150 crore and ₹180 crore. What is its average profit?
  1. ₹180 crore
  2. ₹450 crore
  3. ₹150 crore
  4. ₹160 crore
6.
A business borrows ₹110,000 at 13% interest a year. How much interest does it pay in one year?
  1. ₹14,300
  2. ₹15,400
  3. ₹124,300
  4. ₹143,000
7.
J. R. D. Tata was born in 1904. How many years before 2026 was that?
  1. 122 years
  2. 118 years
  3. 123 years
  4. 132 years
8.
A restaurant pays 10 workers ₹9,000 each a month. What is its monthly wage bill?
  1. ₹90,000
  2. ₹9,010
  3. ₹99,000
  4. ₹1,080,000
Section B — Short answer8 × 2 = 16 marks
9.
Name the four factors of production.
10.
Name the factor of production: (a) water used in a factory (b) an oven in a bakery
11.
Explain each term: (a) productivity (b) CSR
12.
Under India’s CSR law, a company spends 2% of its average profit of the last three years. If that average is ₹300 crore, how much must it spend?
13.
Ratna borrows ₹100,000 at 8% simple interest a year for 3 years. How much interest does she pay in all, and what is the total to repay?
14.
Labour-intensive or capital-intensive? (a) building satellites (b) making semiconductor chips
15.
A company pays a dividend of ₹10 on each share. How much does someone with 370 shares receive? Is a dividend paid by a borrower or by a company?
16.
A survey of a locality found 8 grocery shops, 9 food stalls, 13 vegetable vendors and 3 mobile repair shops. How many businesses is that, and which kind is most common?
Section C — Longer answers4 × 4 = 16 marks
17.
Explain the four factors of production using a restaurant as an example.
18.
Match each with its factor of production: (a) the land a restaurant stands on (b) a bank loan used to buy machines (c) a carpenter’s work. Choose from: land; capital; labour.
19.
A company’s profits were ₹430 crore, ₹540 crore and ₹530 crore. (a) What is the average? (b) How much must it spend on CSR at 2%? (c) Suggest two good uses for CSR money.
20.
A restaurant pays 9 workers ₹18,000 a month each and ₹37,000 rent. (a) What is the monthly wage bill? (b) Total monthly cost of labour and land? (c) Which factor does the owner provide?
AmbifulWorksheets
Practice that never repeats
CBSE · Class 8 · Social Science

Answer key

Factors of Production · AW-8SS-FOP-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) all natural resources such as soil, water and minerals—
2(c) labour—
3(c) interest—
4(a) the network that makes and delivers a product—
5(c) ₹150 crore(120 + 150 + 180) ÷ 3
6(a) ₹14,30013% of 110,000
7(a) 122 years2026 − 1904
8(a) ₹90,00010 × 9,000
9Land, labour, capital and entrepreneurship (with technology as an enabler).—
10(a) land (b) capital—
11(a) doing more in a given time (b) business spending on society and the environment—
12₹6 crore2% of 300
13interest ₹24,000; total ₹124,000100,000 × 8% × 3
14(a) capital-intensive (b) capital-intensive—
15₹3,700; by a company, to its shareholders370 × 10
1633; vegetable vendors8 + 9 + 13 + 3
17Land: the site and water; labour: cooks and helpers; capital: the kitchen equipment and money; entrepreneurship: the owner who started it and takes the risks.—
18(a) land (b) capital (c) labour—
19(a) ₹500 crore (b) ₹10 crore (c) Schools, health camps, clean water or planting trees.(430 + 540 + 530) ÷ 3; 2% of that
20(a) ₹162,000 (b) ₹199,000 (c) Entrepreneurship (and usually some capital).9 × 18,000; + 37,000