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.
* The two ways to grow more crops on the same land are multiple cropping and modern farming.
* Modern farming is associated with many environmental and economic problems.
* There is equitable distribution of land amongst farmers.
* Small farmers take loans to arrange for farming capital, while large farmers sell their surplus produce for the same.
Non – Farming Activities
* A small part of the population in Palampur is engaged in non-farming activities.
* The main non-farming activities in Palampur are Dairy, Shop-keeping,