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Which of the following statements is correct?
- a)A large number of industries face under utilization of production-capacity.
- b)The incremental capital -output ratio has been falling over the planning period.
- c)In terms of regions, industrial development is quite balanced.
- d)None of the above.
Correct answer is option 'A'. Can you explain this answer?
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Which of the following statements is correct?a)A large number of indus...
Under Utilization of Production Capacity in Industries
- The correct statement is "A large number of industries face under utilization of production-capacity."
- This means that many industries are not operating at their full production capacity.
- Underutilization of production capacity can lead to inefficiencies and lower output levels, impacting overall economic growth.
Explanation
- Various factors can contribute to underutilization of production capacity in industries, such as lack of demand, supply chain disruptions, labor shortages, and inadequate infrastructure.
- Inefficient production processes, outdated technology, and poor management practices can also lead to underutilization of capacity.
- Addressing underutilization of production capacity is crucial for improving productivity, increasing output levels, and stimulating economic growth.
Impact on Economy
- When industries operate below their full capacity, it can result in lower employment opportunities, reduced income levels, and slower economic development.
- Underutilization of production capacity can also lead to wastage of resources and hinder the competitiveness of industries in the global market.
Conclusion
- Recognizing and addressing underutilization of production capacity in industries is essential for promoting sustainable economic growth, creating employment opportunities, and enhancing overall productivity.
- The correct statement is "A large number of industries face under utilization of production-capacity."
- This means that many industries are not operating at their full production capacity.
- Underutilization of production capacity can lead to inefficiencies and lower output levels, impacting overall economic growth.
Explanation
- Various factors can contribute to underutilization of production capacity in industries, such as lack of demand, supply chain disruptions, labor shortages, and inadequate infrastructure.
- Inefficient production processes, outdated technology, and poor management practices can also lead to underutilization of capacity.
- Addressing underutilization of production capacity is crucial for improving productivity, increasing output levels, and stimulating economic growth.
Impact on Economy
- When industries operate below their full capacity, it can result in lower employment opportunities, reduced income levels, and slower economic development.
- Underutilization of production capacity can also lead to wastage of resources and hinder the competitiveness of industries in the global market.
Conclusion
- Recognizing and addressing underutilization of production capacity in industries is essential for promoting sustainable economic growth, creating employment opportunities, and enhancing overall productivity.
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Which of the following statements is correct?a)A large number of industries face under utilization of production-capacity.b)The incremental capital -output ratio has been falling over the planning period.c)In terms of regions, industrial development is quite balanced.d)None of the above.Correct answer is option 'A'. Can you explain this answer?
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