Reviewing the Class 8 SST MCQ and Class 8 Social Science Chapter 7 Factors of Production MCQ Questions Online Test with Answers before exams can boost your confidence.
Class 8 Factors of Production MCQ with Answers
MCQ on Factors of Production Class 8
Class 8 SST Chapter 7 Factors of Production MCQ Questions with Answers
Question 1.
Everything around us, like clothes, shoes and bags, goes through which process?
(a) Distribution process
(b) Production process
(c) Marketing process
(d) Sales process
Answer:
(b) Production process
Question 2.
How many main types of factors of production are classified in economics?
(a) Three
(b) Four
(c) Five
(d) Six
Answer:
(b) Four
Question 3.
In this chapter, technology in production is described as a
(a) Fifth factor of production
(b) Facilitator that helps firms produce more with the same or fewer inputs
(c) Substitute for labour in all cases
(d) Tool used only by large firms
Answer:
(b) Facilitator that helps firms produce more with the same or fewer inputs
Question 4.
Which of the following is not listed as an entrepreneur’s role?
(a) Taking risks
(b) Combining factors of production
(c) Making key decisions
(d) Providing free public services
Answer:
(d) Providing free public services
Question 5.
Which of these is not included under ‘land’ in economics?
(a) Sunlight
(b) Factory building
(c) Natural gas
(d) Minerals
Answer:
(a) Sunlight
Question 6.
“Labour refers to the physical and mental effort used in production, while human capital refers to the quality, skills and expertise of that labour.”
What does this statement highlight?
(a) Labour and human capital are the same
(b) Labour is more important than human capital
(c) Human capital is less expensive than labour
(d) Labour is effort; human capital is quality and expertise
Answer:
(d) Labour is effort; human capital is quality and expertise
Question 7.
Which activity is given as an example of training that turns classroom learning into practical skill in civil engineering?
(a) Memorising formulas
(b) Visiting construction sites and handling real tools
(c) Writing an essay on bridges
(d) Watching unrelated videos
Answer:
(b) Visiting construction sites and handling real tools
Question 8.
A civil engineer applies classroom knowledge at a construction site to build earthquake- resistant buildings. This scenario shows the applicatiop of.
(a) Capital-intensive production
(b) Skill-based division of labour
(c) Complementarity between education and training
(d) Use of traditional knowledge systems
Answer:
(c) Complementarity between education and training
Question 9.
Which of the following statements are correct?
I. Labour-intensive industries require more capital than labour.
II. If any input is misused or missing, production may become inefficient.
III. Entrepreneurs coordinate land, labour and capital in production.
IV. Inputs are independent and do not rely on one another.
Options
(a) I and II
(b) II and III
(c) III and IV
(d) I and IV
Answer:
(b) II and III
Question 10.
Which government portal helps people find job opportunities across sectors, from plumbing to accounting?
(a) eShram
(b) National Career Service
(c) DIKSHA
(d) MyGov
Answer:
(b) National Career Service
Question 11.
In 2025, India is the world’s second-largest mobile-phone manufacturer after
(a) the United States
(b) China
(c) Japan
(d) South Korea
Answer:
(b) China
Question 12.
Which of the following best shows the unique role of an entrepreneur in the production process?
(a) Managing factory operations alone
(b) Investing money to buy land and machines
(c) Coordinating inputs and taking risks to build a product or service
(d) Designing machines to reduce manual labour
Answer:
(c) Coordinating inputs and taking risks to build a product or service
Question 13.
To fully benefit from the demographic dividend, individuals mustliave access to
(a) only capital
(b) only technology
(c) education, health, training and skilling
(d) foreign investment only
Answer:
(c) education, health, training and skilling
Question 14.
Statement I The use of 3-D printing in handicrafts is helping preserve traditional skills while increasing production efficiency. Statement II Technology in production always reduces employment in labour-intensive industries.
Choose the correct option.
(a) Only Statement I is correct
(b) Only Statement II is correct
(c) Both Statements I and II are correct
(d) Statement I is correct, but Statement II is incorrect
Answer:
(d) Statement I is correct, but Statement II is incorrect
Question 15.
What does the stock market enable large companies to do?
(a) Borrow only from banks
(b) Raise money from the public by selling shares and offering dividends
(c) Sell agricultural produce
(d) Lease government land
Answer:
(b) Raise money from the public by selling shares and offering dividends
Question 16.
Define dividend.
(a) interest paid by borrowers to banks
(b) tax paid by firms to government
(c) a government subsidy
(d) a share of company profits paid to shareholders
Answer:
(d) a share of company profits paid to shareholders
Question 17.
India’s ancient shipbuilding technique is unique because it involved which method?
(a) Using nails and bolts
(b) Welding iron plates
(c) Stitching wooden planks with cords
(d) Building ships from stone
Answer:
(c) Stitching wooden planks with cords
Question 18.
A car manufacturing company stops its production because it is unable to import microchips due to an international shipping delay. Which of the following best explains the reason for the disruption?
(a) Lack of entrepreneurship
(b) Geographical immobility of labour
(c) Disruption in the global supply chain
(d) Overuse of natural resources
Answer:
(c) Disruption in the global supply chain
Question 19.
A textile company introduces water treatment systems to reduce pollution and supports training programmes for local women. This best demonstrates:
(a) Capital mobilisation
(b) Labour welfare laws
(c) Technological investment
(d) Corporate social responsibility
Answer:
(d) Corporate social responsibility
Question 20.
Identify the correct statements about the role of technology in production
I. Technology always eliminates the need for human labour.
II. It helps improve production speed and efficiency.
III. It allows scaling up traditional industries like handicrafts.
IV. All technologies used in the past are now outdated.
Choose the correct option.
(a) I, II, III
(b) Both II and III
(c) Both I and IV
(d) Only IV
Answer:
(b) Both II and III
Question 21.
In which year did J.R.D. Tata receive the Bharat Ratna, India’s highest civilian award?
(a) 1992
(b) 1993
(c) 1994
(d) 1995
Answer:
(a) 1992
Question 22.
The government platform SWAYAM offers courses to students through which medium?
(a) Television lectures
(b) Postal services
(c) Massive Open Online Courses (MOOCs)
(d) Private schools only
Answer:
(c) Massive Open Online Courses (MOOCs)
Question 23.
highlights the importance of what?
(a) Unlimited industrialisation
(b) Responsible use of natural resources
(c) Dependence on imports
(d) Avoidance of labour-intensive work
Answer:
(b) Responsible use of natural resources
Question 24.
Which of the following is listed as a responsibility towards workers?
(a) Eliminating training to save costs
(b) Fair compensation and safe working conditions
(c) Guaranteeing lifetime jobs regardless of performance
(d) Hiring only graduates
Answer:
(b) Fair compensation and safe working conditions
Factors of Production Class 8 Assertion-Reason Type Questions
Question 1.
Assertion (A) Healthy workers are less productive and miss more workdays.
Reason (R) Good health improves learning, attendance and efficiency.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is false, but R is true
(d) Both A and R are false
Answer:
(c) A is false, but R is true
Question 2.
Assertion (A) Education and training work together to develop human capital.
Reason (R) Education provides knowledge, while training gives practical experience.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is false, but R is true
(d) Both A and R are false
Answer:
(a) Both A and R are true and R is the correct explanation of A
Question 3.
Assertion (A) Technology helps improve speed, efficiency and cost-effectiveness in production.
Reason (R) Modern machines always require more human labour to operate. CBQ
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
Answer:
(c) A is true, but R is false
Question 4.
Assertion (A) Inputs used in production often come from different geographical locations.
Reason (R) The supply chain connects various producers, suppliers and distributors globally.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
Answer:
(a) Both A and R are true and R is the correct explanation of A
Factors of Production Class 8 Fill in the blanks
Question 1.
The resources or inputs used in producing goods and services are called ______.
Answer:
Factors of Production
Question 2.
In economics, the four main factors of production are ______,______,______ and ______.
Answer:
Land, Labour, Capital, Entrepreneurship
Question 3.
______ plays a key role by enabling businesses to produce more using fewer resources.
Answer:
Technology
Question 4.
Good health supports ______ development, allowing children to attend school regularly and learn better.
Answer:
Cognitive
Question 5.
Human capital refers to the ______ and expertise of workers.
Answer:
Quality, Efficiency
Question 6.
______ helps workers become more productive, reative and efficient by improving their physical and mental well-being.
Answer:
Healthcare
Question 7.
The adult literacy rate in India, as of 2023, is ______ per cent for males and ______ percent for females.
Answer:
85,70
Question 8.
In economics, money plus human-made resources like machines, tools and buildings used to produce goods are together called ______.
Answer:
Capital
Question 9.
German work ethic is known for ______, attention to detail and ______ standards.
Answer:
Punctuality, High-quality
Question 10.
______ is the factor of production that refers to man-made resources like machines and tools.
Answer:
Capital
Question 11.
A person who takes the risk to organise the factors of production is called an ______.
Answer:
Entrepreneur
Question 12.
The ______ market is a special type of market where shares of companies are bought and sold.
Answer:
Stock
Factors of Production Class 8 True or False
Question 1.
Every product around us goes through a production process before it reaches us.
Answer:
True
Question 2.
Factors of production include only land and labour.
Answer:
False
Question 3.
Businesses combine inputs to create goods and services, generating opportunities for people to work.
Answer:
True
Question 4.
In economics, land refers only to the geographical area.
Answer:
False
Question 5.
Minerals like oil and natural gas are man-made resources.
Answer:
Question 6.
Human capital is improved through education, training and health.
Answer:
True
Question 7.
Male and female literacy rates are equal in India, according to the World Bank 2023.
Answer:
Question 8.
All old technologies have become completely obsolete.
Answer:
Question 9.
India’s adult literacy rate for females in 2023 was 90%.
Answer:
Question 10.
A demographic dividend occurs when a country has a large working-age population.
Answer:
True
Question 11.
The ship-stitching technique used in India 2000 years ago relied on nails.
Answer:
Question 12.
Capital includes only money and does not cover machines or tools.
Answer:
False
Question 13.
J.R.D. Tata started India’s first airline, which later became Air India.
Answer:
True
Question 14.
Only capital and labour are essential; land and entrepreneurship are optional in production.
Answer:
False
Question 15.
Cultural values like punctuality and discipline can influence a nation’s productivity.
Answer:
True
Factors of Production Class 8 Match the following
Question 1.
| List I (Workers) | List II (Type of Effort) |
| A- Carpenter | 1. Mental and decision-making |
| B- Teacher | 2. Physical and skill-based |
| C- Doctor | 3. Knowledge and expertise |
| D- Construction worker | 4. Innovation and research |
| E- Scientist | 5. Physical strength |
Codes
(a) A-2, B-3, C-1, D-5, E-4
(b) A-1, B-2, C-3, D-4, E-5
(d) A-2, B-1, C-3, D-5, E-4
(c) A-3, B-2, C-1, D-5, E-4
Answer:
| List I (Workers) | List II (Type of Effort) |
| A- Carpenter | 2. Physical and skill-based |
| B- Teacher | 1. Mental and decision-making |
| C- Doctor | 3. Knowledge and expertise |
| D- Construction worker | 5. Physical strength |
| E- Scientist | 4. Innovation and research |
Question 2.
| List I (Factor) | List II (Description) |
| A. Land | 1. Human effort (physical arid mental) |
| B. Labour | 2. Initiative to start a business, take risks |
| C. Capital | 3. Natural resources like soil, forests, and minerals |
| D. Entrepreneurship | 4. Tools, machines, money, buildings |
Codes
(a) A-1, B-2, C-3, D-4
(b) A-3, B-1, C-4, D-2
(d) A-4, B-3, C-2, D-1
(c) A-2, B-4, C-1, D-3
Answer:
| List I (Factor) | List II (Description) |
| A. Land | 3. Natural resources like soil, forests, and minerals |
| B. Labour | 1. Human effort (physical arid mental) |
| C. Capital | 2. Initiative to start a business, take risks |
| D. Entrepreneurship | 4. Tools, machines, money, buildings |
Question 3.
| List I (Source o CaptaI) | List II (Type) |
| A. Personal savings | 1. Raising money through shares |
| B. Family & friends | 2. Loan with interest |
| C. Bank | 3. InformaI support |
| D. Stock market | 4. Own funds |
Codes
(a) A-1, B-2, C-3, D-4
(b) A-4, B-3, C-2, D-1
(d) A-3, B-1, C-4, D-2
(c) A-2, B-4, C-1, D-3
Answer:
| List I (Source o CaptaI) | List II (Type) |
| A. Personal savings | 1. Raising money through shares |
| B. Family & friends | 2. Loan with interest |
| C. Bank | 3. InformaI support |
| D. Stock market | 4. Own funds |
Question 4.
| List I (Facilitator) | List II (Role) |
| A. Education & training | 1. Improves productivity and creativity |
| B. Healthcare | 2. Supports regular learning and better work |
| C. Social & cultural influences | 3. Builds skills, knowledge, expertise |
| D. Technology | 4. Promotes discipline, hard work, and excellence |
Codes
(a) A-4, B-3, C-2,D-1
(b) A-3, B-2, C-4, D-1
(d) A-2, B-4, C-1, D-3
(c) A-1, B-4, C-3, D-2
Answer:
| List I (Facilitator) | List II (Role) |
| A. Education & training | 1. Improves productivity and creativity |
| B. Healthcare | 4. Promotes discipline, hard work, and excellence |
| C. Social & cultural influences | 3. Builds skills, knowledge, expertise |
| D. Technology | 2. Supports regular learning and better work |
Question 5.
| List I (Entrepreneur) | List II (Contribution) |
| A. J.R.D. Tata | 1. Started Air India, expanded industries |
| B. Ratna (Pause Point) | 2. Opened small restaurant on highway |
| C. Startup founders | 3. Aim at rapid growth using technology |
| D. Ancient sculptors | 4. Blended art and devotion in temple work |
Codes
(a) A-1, B-2, C-3, D-4
(b) A-2, B-1, C-4, D-3
(d) A-4, B-3, C-2, D-1
(c) A-3, B-4, C-1, D-2
Answer:
| List I (Entrepreneur) | List II (Contribution) |
| A. J.R.D. Tata | 1. Started Air India, expanded industries |
| B. Ratna (Pause Point) | 2. Opened small restaurant on highway |
| C. Startup founders | 3. Aim at rapid growth using technology |
| D. Ancient sculptors | 4. Blended art and devotion in temple work |
Picture Based Questions
Question 1.
The activity shown in the image best represents which of the following factors of production?
(a) Land
(b) Labour
(c) Capital
(d) Entrepreneur
Answer:
(b) Labour
Question 2.
The activity shownThTKelmage best represents which of the following factors of production?
(a) Land
(b) Labour
(c) Capital
(d) Entrepreneur
Answer:
(c) Capital
Question 3.
The activity shown in the image best represents which of the following factors of production?
(a) Land
(b) Technology
(c) Capital
(d) Entrepreneur
Answer:
(b) Technology
Case Based Questions
Question 1.
Read the passage given below and answer the questions that follow.
Meet Ratna, who runs a small restaurant named Pause Point, on the city outskirts. Popular among highway travellers for its tasty, high-quality food, Pause Point is growing with a team of seven people who assist Ratna in managing the business. When she started five years ago, she had to choose a location, organise money for rent and equipment, hire staff, buy ingredients and plan how to make her dream a success.
(i) What role did Ratna play when she planned and started her restaurant business?
(a) Labour
(b) Landowner
(c) Entrepreneur
(d) Customer
Answer:
(c) Entrepreneur
(ii) Example of physical capital used in the restaurant:
(a) Cooking skills of Ratna
(b) Gas stove and utensils
(c) Waiters serving food
(d) Clean surroundings
Answer:
(b) Gas stove and utensils
(iii) Factor of production represented by Ratna’s workers:
(a) Land
(b) Labour
(c) Capital
(d) Organisation
Answer:
(b) Labour
(iv) Why Ratna’s restaurant became popular among travellers?
(a) It was located in the city centre
(b) It served low-quality food at high prices
(c) It offered tasty and high-quality food
(d) It had no competition nearby
Answer:
(c) It offered tasty and high-quality food
Question 2.
In economics, the inputs used in a production process or the factors of production are classified into four types – land, labour, capital and entrepreneurship. Technology is a facilitator and a crucial factor that enables businesses to produce more goods with the same or fewer inputs.
(i) Which of the following is not a factor of production?
(a) Land
(b) Labour
(c) Capital
(d) Demand
Answer:
(d) Demand
(ii) Which factor refers to the natural resources available for production?
(a) Labour
(b) Land
(c) Capital
(d) Entrepreneurship
Answer:
(b) Land
(iii) How does technology act in production?
(a) Makes work slower
(b) Helps produce more with fewer resources
(c) Replaces all other factors completely
(d) Increases costs without benefits
Answer:
(b) Helps produce more with fewer resources
(iv) Which factorUf “production involves starting a business and taking risks?
(a) Land
(b) Labour
(c) Capital
(d) Entrepreneurship
Answer:
(d) Entrepreneurship
Question 3.
A factory expands but also adopts sustainable practices: it treats wastewater before discharge, uses some recycled inputs, and invests in worker training and safety gear. Managers also review wages to ensure fair compensation and comply with workplace-rights laws.
(i) Which practice in the passage protects the environment?
(a) Overtime for workers
(b) Treating wastewater before release
(c) Cutting training budgets
(d) Reducing wages
Answer:
(b) Treating wastewater before release
(ii) Which line reflects a responsibility toward workers?
(a) Purchasing cheaper machines
(b) Reviewing wages for fairness
(c) Extending factory hours
(d) Importing more raw materials
Answer:
(b) Reviewing wages for fairness
(iii) Investing in training primarily helps to
(a) increase absenteeism
(b) reduce safety
(c) develop skills to remain competitive
(d) replace all workers
Answer:
(c) develop skills to remain competitive
(iv) Using recycled inputs best aligns with
(a) labour-intensive production
(b) capital-intensive production only
(c) responsible use of natural resources
(d) avoiding technology
Answer:
(c) responsible use of natural resources