The Story of Village Palampur – Notes

Introduction

Palampur is an imaginary village that can be located in any part of India.

The residents of Palampur have good access to road connectivity, transport, education, electricity and healthcare services.

Farming is the main production activity in Palampur.

People in Palampur are also engaged in non-farming activities like shop-keeping, dairy, small-scale manufacturing and transport services.

Factors of Production

Goods and services are made available to us through production.

Land, labour, physical capital and human capital are the four requirements or factors of a production activity.

How Should Land be used?

The two ways to increase farm production are either increase the land area under cultivation or grow more crops on the same land.