UPSC Prelims 2001 · General Studies
Question 64: Economy and Social Development
Consider the following factors regarding an industry: I. Capital investments II. Business turnover III. Labour force IV. Power consumption Which of these determine the nature and size of the industry?
AnswerThe answer is (a).
Capital investment, labour force and power consumption determine the nature and size of an industry. Small-scale industries are classified by investment in plant and machinery, while the Factories Act applies according to the number of workers employed and the use of power. Business turnover is not one of the standard determinants. Remember the three tests: investment, workers, power.
- I. Capital investment is a standard test of size.
- II. Business turnover is not a standard determinant.
- III. The size of the labour force is a standard test.
- IV. Power consumption is a standard test.
Why each option is right or wrong
- (a) Right: investment, labour force and power consumption.
- (b) Turnover is not a standard determinant of size.
- (c) Turnover is not a standard determinant, and it leaves out investment.
- (d) Leaves out power consumption, which also matters.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2001, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.