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Q.

Which factor of production is scarce and fixed?

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a

Capital

b

Land

c

Labour

d

Enterprise

answer is B.

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Detailed Solution

The land is the factor of production that is scarce and fixed.
The major constraint to increasing production is that the area for cultivation is permanently fixed and low. Taking the example of village Palampur itself, among the 450 families, 150 are landless even though most of the population is involved in agricultural activities. Even though the land area is fixed, one can make proper use of it through scientific methods of production, especially for agricultural purposes, including multiple cropping and using high-yielding varieties of seeds. Capital, labor, and enterprise are not scarce and fixed compared to land.

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