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The chapter focuses on the production activities in the hypothetical village of Palampur, detailing how farming is the primary source of livelihood for the majority. It discusses the factors of production, including land, labor, physical capital, and human capital, along with modern farming techniques that help increase productivity. Non-farm activities and social structures in Palampur are explored, highlighting the divide between small and large farmers and the challenges faced by economically weaker sections.
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Term: Farming
Definition: Agricultural activity that involves cultivating land and raising crops and livestock.
Term: Factors of Production
Definition: Resources needed to produce goods and services, including land, labor, capital, and human capital.
Term: High Yielding Varieties (HYVs)
Definition: Genetically improved seeds introduced during the Green Revolution that produce higher crop yields.
Term: Multiple Cropping
Definition: Planting of more than one crop on the same piece of land in a single year.
Term: Physical Capital
Definition: Tangible assets used in the production process, such as tools, machinery, and buildings.