Factors of Production — Class 8 MCQs with Answers
Class 8 CBSE Social Science · Chapter 7
72 practice questions · 24 Easy · 24 Medium · 24 Hard · Updated
Practise the most important Class 8 CBSE Social Science questions from Chapter 7, "Factors of Production". You get 9 timed quizzes made from 72 NCERT-based MCQs, with answers and explanations. The questions are split into 24 Easy, 24 Medium and 24 Hard. Warm up on the basics, then move on to the exam-level questions that set top scorers in CBSE Board exams apart.
To score well in "Factors of Production", focus on dates, cause and effect, and reading maps and sources. Each MCQ here is timed and uses exam-style marking (+4 correct, −1 wrong, 0 skipped). This trains you to stay accurate under time pressure, as real papers need. Every question has a short explanation, so a wrong answer becomes a quick lesson. It is the fastest way to fix gaps before a test.
Use this chapter for focused revision. Start with the Easy set to check your basics on Factors of Production, then move to Medium and Hard to practise applying them. Your accuracy, streaks and XP save automatically. This chapter also adds to your overall Class 8 Social Science mastery score. 14 sample questions are solved in full below, with the answer and a worked explanation. Sign in free to start practising.
Key concepts: Factors of Production (Class 8 Social Science)
Every good and service is made by combining four inputs — land, labour, capital and entrepreneurship — with technology as a facilitator. The chapter gives particular attention to human capital and to India's inherited traditions of skill.
- Factors of production
- The resources or inputs used to produce goods and services: land, labour, capital and entrepreneurship.
- Land (in economics)
- Not just ground but all natural resources — soil, forests, water, air, sunlight, minerals, oil and natural gas.
- Labour
- The physical and mental effort people put into production.
- Human capital
- The specialised skills, knowledge, abilities and expertise behind that effort — the quality and efficiency of labour, not just its quantity.
Factors of Production — important questions & MCQs with answers (Class 8 Social Science)
14 solved questions from this chapter's difficulty levels, each with its answer and explanation. The other 58 are timed and scored when you sign in.
- Q1Easy
The resources or inputs used in producing goods and services are called:
A.consumer goodsB.finished productsC.factors of production✓ CorrectD.market pricesAnswer: C. factors of production
Explanation: Every product goes through a production process before it reaches you.
- Q2Easy
Human capital refers to the specialised skills, knowledge, abilities and:
A.land owned by a workerB.expertise required to perform labour✓ CorrectC.machines used in a factoryD.money invested in a businessAnswer: B. expertise required to perform labour
Explanation: It is not just the basic effort of labour but the quality and efficiency of that labour.
- Q3Easy
In ancient India, the worship of tools continues today as Viśhwakarmā pūjā or:
A.KaizenB.VṛikṣhāyurvedaC.Āyudha pūjā✓ CorrectD.Saraswati pūjāAnswer: C. Āyudha pūjā
Explanation: Tools were treated as a form of technology worthy of respect.
- Q4Easy
In economics, capital means money plus:
A.natural resourcesB.the skills of workersC.land held on leaseD.human-made resources used to produce goods and services✓ CorrectAnswer: D. human-made resources used to produce goods and services
Explanation: Machinery, tools, vehicles, computers, shops and factories are examples.
- Q5Easy
In economics, the four factors of production are land, labour, capital and:
A.transportB.electricityC.technologyD.entrepreneurship✓ CorrectAnswer: D. entrepreneurship
Explanation: Technology is described as a facilitator rather than a fifth factor.
- Q6Easy
Which is named in the chapter as a facilitator of human capital?
A.Education and training✓ CorrectB.Stock marketsC.Natural gasD.Rent and interestAnswer: A. Education and training
Explanation: Healthcare and social and cultural influences are the other two.
- Q7Medium
In Ratna's restaurant, the vegetables, gas and utensils are best classified as:
A.human capitalB.finished goodsC.inputs into the production process✓ CorrectD.dividendsAnswer: C. inputs into the production process
Explanation: Restaurants combine such inputs to produce cooked meals, snacks and beverages.
- Q8Medium
The chapter distinguishes labour from human capital by saying labour is the effort, while human capital is:
A.the number of workersB.the quality and efficiency of that effort✓ CorrectC.the hours workedD.the wages paid for itAnswer: B. the quality and efficiency of that effort
Explanation: Human capital covers the specialised skills and expertise brought to the work.
- Q9Medium
In ancient India, work is described as a form of:
A.acquiring landB.expressing one's nature and striving for perfection✓ CorrectC.avoiding manual effortD.paying taxes to the rulerAnswer: B. expressing one's nature and striving for perfection
Explanation: It was to be done with devotion, as an offering to the deity or the receiver.
- Q10Medium
Ratna took a bank loan because:
A.the government required itB.banks offered free moneyC.her personal and family funds were insufficient✓ CorrectD.she wanted to sell sharesAnswer: C. her personal and family funds were insufficient
Explanation: She repaid interest along with part of the principal over time.
- Q11Medium
Which item from a mobile repair shop would count as 'land' in the economic sense?
A.The shopkeeper's skillB.The spare partsC.The toolsD.None of the tools or spare parts, which are capital✓ CorrectAnswer: D. None of the tools or spare parts, which are capital
Explanation: 'Land' covers natural resources; tools and parts are capital and skill is human capital.
- Q12Hard
Assertion: Technology is treated as a facilitator, not a factor of production. Reason: It lets enterprises produce more goods with the same or fewer inputs. Choose the correct option.
A.The assertion is true but the reason is falseB.Both are true, but the reason does not explain the assertionC.Both are true, and the reason explains the assertion✓ CorrectD.Both are falseAnswer: C. Both are true, and the reason explains the assertion
Explanation: It works on the other factors rather than being an independent input.
- Q13Hard
Two workers do the same job, but one has years of specialised training. The chapter would explain the difference in their output as a difference in:
A.landB.human capital✓ CorrectC.interestD.dividendAnswer: B. human capital
Explanation: Labour is the effort; human capital is the quality and efficiency of that effort.
- Q14Hard
Assertion: Traditional Indian craftsmanship achieved very high standards. Reason: Knowledge was codified in texts and passed down and built upon across generations. Choose the correct option.
A.Both are falseB.Both are true, but the reason does not explain the assertionC.Both are true, and the reason explains the assertion✓ CorrectD.The assertion is true but the reason is falseAnswer: C. Both are true, and the reason explains the assertion
Explanation: The śhilpa śhāstras plus generational transmission are exactly the mechanism the chapter describes.
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Start this chapter free →Factors of Production — FAQs
What are the key concepts in Class 8 Social Science Factors of Production?+
Every good and service is made by combining four inputs — land, labour, capital and entrepreneurship — with technology as a facilitator. The chapter gives particular attention to human capital and to India's inherited traditions of skill. Key ideas include Factors of production, Land (in economics), Labour, Human capital.
What does Class 8 Social Science Chapter 7 (Factors of Production) cover on XamBaaz?+
It has 72 NCERT-based MCQs on "Factors of Production": 24 Easy, 24 Medium and 24 Hard. Together they make 9 timed quizzes, and you never get the same set twice. Every question has an instant explanation. They help you prepare for CBSE Board exams.
Are these "Factors of Production" questions free to practise?+
Yes. Sign in with Google to practise "Factors of Production" free. Full unlimited access is ₹999/year on a launch offer until 1 December 2026. No chapter is charged separately.
How should I revise "Factors of Production" for the exam?+
Start with the Easy quiz to check your basics, then try Medium and Hard to practise applying them. There are 9 timed quizzes on this chapter, so you can come back for a fresh set instead of one you have seen. Read each explanation, retry the questions you miss, and track your accuracy until it stays high.
Are these "Factors of Production" MCQs available with answers?+
Yes. 14 sample questions are shown here in full, each with the correct option and a step-by-step "Why" explanation. Sign in free with Google to start practising, with instant scoring.
Is there negative marking in the "Factors of Production" quizzes?+
Yes. The timed quizzes use exam-style marking: +4 for a right answer, −1 for a wrong one and 0 for a skip. MHT-CET and CBSE board papers have no negative marking. Our mocks for those are scored their way.
What are the important questions from Factors of Production (Class 8 Social Science)?+
The questions that matter most test Factors of production, Land (in economics), Labour, Human capital. This page shows 14 solved important MCQs with answers and explanations; all 72 questions on the chapter are available as timed quizzes once you sign in.
Is there an online quiz for Factors of Production?+
Yes — Class 8 Social Science Factors of Production has timed online quizzes at Easy, Medium and Hard levels, with instant scoring and a worked explanation on every question. The first quiz on the chapter is free.