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The purpose of the story is to introduce some basic concepts relating to production and this we do through a story of a hypothetical village called Palampur. Farming is the main activity in Palampur, whereas several other activities such as small scale manufacturing, dairy, transport, etc. are carried out on a limited scale. These production activities need various types of resources — natural resources, manmade items, huma effort, money, etc.

The Story of Village Palampur | Class 9 Economics.