NCERT MCQ Solutions for Class 8 Social Science Chapter 7 Factors of Production updated for Session 2025-26. Class 8 Social chapter 7 from Exploring Society: India and Beyond for New Session explains the basic elements needed to produce goods and services. It covers four key factors—land, labour, capital and entrepreneurship. Students learn how these factors work together in farming, industry and services. Class 8 Social uses simple examples to show economic activities. These MCQs help students understand how production happens in real life and why each factor is important for development.
Class 8 Social Science Solutions
Class 8 Social Science MCQ
Class 8 All Subjects MCQ
Class 8 Social Science Chapter 7 MCQ Online Test
Q1. According to economics, what are the four main factors of production?
[A]. Water, Air, Fire, and Earth
[B]. Shops, Factories, Offices, and Markets
[C]. Land, Labour, Capital, and Entrepreneurship
[D]. Technology, Money, Workers, and Ideas
Q2. In economics, the term ‘land’ refers to:
[A]. Only agricultural fields and plots for building
[B]. All natural resources including soil, forests, water, and minerals
[C]. The space occupied by a factory
[D]. The transportation routes used by a business
Q3. What is the key difference between ‘labour’ and ‘human capital’?
[A]. Labour is mental effort, while human capital is physical effort.
[B]. Labour refers to all workers, while human capital refers only to entrepreneurs.
[C]. Labour is the effort used in production, while human capital is the specialized skill and knowledge that enhances that effort.
[D]. There is no difference; the terms are interchangeable.
Q4. Which of the following are considered key facilitators for developing human capital?
[A]. Money and machinery
[B]. Education, training, and healthcare
[C]. Government regulations and taxes
[D]. Only personal savings and family support
Q5. The Japanese concept of ‘kaizen’, which helped their country achieve higher standards of living, means:
[A]. Working long hours
[B]. Continuous improvement
[C]. Respect for elders
[D]. Profit is everything
Factors of Production Class 8 SSt MCQs
Download MCQ Online Test – TA Quiz App
Q6. What is meant by the term ‘demographic dividend’?
[A]. The benefit a country gets when its population is very old.
[B]. The money a country earns from tourism.
[C]. The benefit a country gets when it has a large number of young and working people.
[D]. The dividends paid to citizens by the government.
Q7. What were the approximate adult literacy rates for males and females in India as of 2023, according to the chapter?
[A]. 50% for males and 40% for females
[B]. 95% for males and 90% for females
[C]. 85% for males and 70% for females
[D]. 70% for males and 85% for females
Q8. What are the Shilpa Shastras?
[A]. Ancient poems about the beauty of nature.
[B]. Ancient texts containing detailed design guidelines for arts and architecture.
[C]. A collection of laws for ancient Indian kingdoms.
[D]. Religious scriptures about the worship of tools.
Q9. What was the unique feature of the ancient Indian shipbuilding technique mentioned in the chapter?
[A]. The ships were made entirely of metal.
[B]. Wooden planks were stitched together with cords instead of using nails.
[C]. They used steam engines for power.
[D]. The ships were designed only for rivers, not the ocean.
Q10. In economics, the term ‘capital’ includes:
[A]. Only the money a business has in the bank.
[B]. Only the profit a business makes.
[C]. Monetary resources as well as human-made assets like machinery, tools, and factories.
[D]. Only the stocks and shares of a company.
Class 8 Social Science Chapter 7 Quiz
Q11. How do large companies often raise financial capital from the general public?
[A]. By asking for donations.
[B]. By taking loans from every citizen.
[C]. By selling shares of the company on the stock market.
[D]. By asking the government for grants.
Q12. An entrepreneur is a person who:
[A]. Only works for a large company.
[B]. Identifies a problem, takes risks, and combines factors of production to start a business.
[C]. Only invests money in the stock market.
[D]. Avoids all forms of risk.
Q13. What is a ‘startup’ defined as?
[A]. Any new shop that opens in a neighborhood.
[B]. A large, established corporation.
[C]. An entrepreneurial venture that aims for rapid growth, often by using technology.
[D]. A government-owned business.
Q14. What major contribution did the entrepreneur J.R.D. Tata make to the Indian economy?
[A]. He invented the first computer in India.
[B]. He started India’s first airline, which later became Air India.
[C]. He discovered a new way to farm crops.
[D]. He wrote the first economics textbook in India.
Q15. Technology is described in the chapter as:
[A]. The most important factor of production.
[B]. A replacement for all human labour.
[C]. An enabler or facilitator of production.
[D]. A type of natural resource.
MCQ Test for Class 8 Social Science Chapter 7
Q16. What is SWAYAM, the government platform mentioned in the chapter?
[A]. A portal to find job opportunities
[B]. A system for making digital payments
[C]. An online learning platform offering free courses for students
[D]. A healthcare app for booking doctor appointments
Q17. An industry that relies more on labour than on machinery, like the handicraft sector, is described as:
[A]. Capital-intensive
[B]. Technology-intensive
[C]. Labour-intensive
[D]. Land-intensive
Q18. What is a ‘supply chain’ in the context of production?
[A]. The physical chain used on an assembly line.
[B]. The network of individuals, resources, and technology involved in producing and selling a product.
[C]. The process of workers demanding higher wages.
[D]. A government system for supplying raw materials.
Q19. Why is it important for producers to use natural resources responsibly?
[A]. Because natural resources are expensive.
[B]. To meet current needs without harming the ability of future generations to meet theirs.
[C]. To avoid paying taxes to the government.
[D]. Because the government forces them to.
Q20. Which of the following is an example of an environmental responsibility for a business?
[A]. Paying fair wages to workers.
[B]. Providing good customer service.
[C]. Reducing waste and avoiding pollution.
[D]. Making the maximum possible profit.
Class 8 Social Science Chapter 7 Objective Questions
Q21. What is one of the key responsibilities a business has towards its workers?
[A]. To make them work as many hours as possible.
[B]. To ensure they are paid fairly and work in a safe environment.
[C]. To provide them with company shares.
[D]. To encourage them to find jobs elsewhere.
Q22. What does ‘Corporate Social Responsibility’ (CSR) involve?
[A]. Businesses focusing only on making profits.
[B]. Businesses addressing social and environmental concerns in their operations.
[C]. The government taking over private businesses.
[D]. A company’s responsibility to its shareholders only.
Q23. India’s CSR law of 2014 was a global first because it:
[A]. Encouraged companies to be responsible.
[B]. Mandated that certain companies must spend a percentage of their profits on CSR activities.
[C]. Banned companies from polluting rivers.
[D]. Allowed companies to ignore their social responsibilities.
Q24. What is the money a borrower pays to a lender for using their money called?
[A]. Dividend
[B]. Profit
[C]. Salary
[D]. Interest
Q25. According to the flowchart, what is the first step in the process of mobile phone assembly?
[A]. Acquiring land and setting up a factory
[B]. The R&D team conceptualizing new features
[C]. Acquiring raw materials
[D]. Testing the phone
Quiz Test Class 8 Social Science Chapter 7
Q26. Which two factors of human capital are essential for a civil engineer to build a durable and cost-efficient bridge?
[A]. Physical strength and speed
[B]. Education in design principles and hands-on training
[C]. Personal savings and family support
[D]. Knowledge of history and geography
Q27. The German work ethic, which contributed to their rise as a manufacturing leader, places a high value on:
[A]. Working slowly and taking long breaks
[B]. Punctuality, attention to detail, and quality
[C]. Creativity over discipline
[D]. Individual success over teamwork
Q28. What is the final stage in the mobile phone assembly process shown in the flowchart before the product is considered complete?
[A]. Mass production & packaging
[B]. Installation of software
[C]. Distribution to retail stores
[D]. Testing the phone for functionality, quality, and performance
Q29. The chapter suggests that the decline of the ancient Indian stitched-ship technique began after:
[A]. The Industrial Revolution
[B]. India’s independence
[C]. The arrival of Europeans in the Indian Ocean in the 16th century
[D]. The invention of the steam engine
Q30. What is a key motivation for an entrepreneur, apart from profit?
[A]. The desire to work less.
[B]. The satisfaction of seeing their ideas become a reality and contributing to society.
[C]. The stability of a fixed salary.
[D]. To avoid taking any risks.
