Among the three factors of production, we found that labour is the most abundant factor of production. There are many people who are willing to work as farm labourers in the villages, whereas the opportunities of work are limited. They belong to either landless families or _____. They are paid low wages, and lead a difficult life.
In contrast to labour, _____ is a scarce factor of production. Cultivated land area is _____. Moreover, even the existing land is distributed _____ (equally/unequally) among the people engaged in farming. There are a large number of small farmers who cultivate small plots of land and live in conditions not much better than the landless farm labourer. To make the maximum use of the existing land, farmers use _____ and _____. Both these have led to increase in production of crops.
Modern farming methods require a great deal of _____. Small farmers usually need to borrow money to arrange for the capital, and are put to great distress to repay the loan. Therefore, capital too is a scarce factor of production, particularly for the small farmers.
Though both land and capital are scarce, there is a basic difference between the two factors of production. _____ is a natural resource, whereas _____ is man-made. It is possible to increase capital, whereas land is fixed. Therefore, it is very important that we take good care of land and other natural resources used in farming.