Factors of Production

At a brick kiln the labourers do the heaviest work all day, yet they earn the least. Jayesh says whoever works hardest must earn most, so the accounts must be wrong. Sheela says earnings are not decided by effort. Who is right?

At closing time a shop has Rs 8,000 in the cash box. The owner says the day made a profit of Rs 8,000. His son says that is not the profit. Who is right?

Reena says all you need to produce something is money; with enough cash you can make anything. Sanjay says money by itself produces nothing. Who is right?

A small village tailoring shop stitches only a modest number of clothes in a year. Someone advises buying a large machine, since machines always reduce cost. Is that advice right in every case?

A small plot is worked by four people. The owner, Girish, says put four more on the same plot and the harvest will double, put eight more and it will triple. Latika says it will not keep scaling like that. Who is right?

Two tea shops stand in the same market. One earns twice as much as the other. A customer says this clearly shows the first shop makes better tea. Can that be concluded?