Q2 of 34 Page 11

What happens to farmer-3 in year 3? Can he continue production? What will he have to do to continue production?

(i) In 3rd year, farmer 3 could not produce wheat anymore in accordance with the trends of the three years.

(ii) Yes, production can be continued by him but it would require additional capital input from the farmer’s end.


(iii) The farmer will have to arrange for working capital by borrowing money from the moneylender, banks or some other source, if he wishes to continue production.


More from this chapter

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1

Let us take three farmers. Each has grown wheat on his field, though the production is different (see Column 2). The consumption of wheat by each farmer family is the same (Column 3). The whole of surplus of wheat this year is used as capital for next year's production. Also suppose production is twice the capital used in production.

Complete the tables.


Farmer 1


 

Production

Consumption

Surplus =
Production -
Consumption

Capital for the
next year

Year 1

Year 2

Year 3

100


120

40

40

40

60

-

-

60

-

-

Farmer 2


 

Production

Consumption

Surplus = 
Production -
Consumption

Capital for the
next year

Year 1

Year 2

Year 3

80

-

-

40

40

40

-

-

-

-

-

-

Farmer 3


 

Production

Consumption

Surplus =
Production -
Consumption

Capital for the
next year

Year 1

Year 2

Year 3

60

-

-

40

40

40

-

-

-

-

-

-
1

Compare the production of wheat by the three farmers over 3 years.

 1

Read the following descriptions and answer the questions that follow:

Mishrilal has purchased a mechanical sugarcane crushing machine run on electricity and has set it up on his field. Sugarcane crushing was earlier done with the help of bullocks but people prefer to do it by machines these days. Mishrilal also buys sugarcane from other farmers and processes it into jaggery. The jaggery is then sold to traders at Shahpur. In the process, Mishrilal makes a small profit.


1) What capital did Mishrilal need to set up his jaggery manufacturing unit?


2) Who provides the labour in this case?


3) Can you guess why Mishrilal is unable to increase his profit?


4) Could you think of any reasons when he might face a loss?


5) Why does Mishrilal sell his jaggery to traders in Shahpur and not in his village?

 2

Read the following descriptions and answer the questions that follow:

Kareem has opened a computer class centre in the village. In recent years, a large number of students have been attending college in Shahpur town. Kareem found that a number of students from the village are also attending computer classes in the town. There were two women in the village having a degree in computer applications. He decided to employ them. He bought computers and set up the classes in the front room of their house over looking the market. High class students have started attending them in good numbers.


1) In what ways is Kareem's capital and labour different from Mishrilal’s?


2) Why didn't someone start a computer centre earlier? Discuss the possible reasons.