Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

What is a characteristic of small-scale industries compared to large-scale industries?

Options:

Generate more employment.

Greater market competitiveness.

More labor-intensive

Both 1 and 3

Correct Answer:

Both 1 and 3

Explanation:

It is believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms.