Q 34. INDUSTRY AND EMPLOYMENT

Q34. Consider the following statements:

I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).

II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.

Which of the statements given above is/are correct?

a) I only
b) II only
c) Both I and II
d) Neither I nor II
Answer: b
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1. Correct Answer: Option B: II only
 2. Explanation:
     ● Statement I is incorrect: The mandate for submitting a Business Responsibility and Sustainability Report (BRSR) comes from the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India (RBI). SEBI requires the top 1,000 listed companies to submit this report as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.  
     ● Statement II is correct: The BRSR is a non-financial reporting framework. It requires companies to disclose their performance on environmental, social, and governance (ESG) parameters, aligning with the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC).  
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Q . INDUSTRY AND EMPLOYMENT

With reference to physical capital in Indian economy, consider the following pairs:

Items

Category

Farmer’s plough

Working capital

Computer

Fixed capital

Yarn used by the weaver

Fixed capital

Petrol

Working capital

How many of the above pairs are correctly matched?

a) Only one
b) Only two
c) Only three
d) All four
Answer: b
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Correct Match:

Items

Category

Farmer’s plough

Fixed capital

Computer

Fixed capital

Yarn used by the weaver

Working capital

Petrol

Working capital

  • Pair 1 is incorrect: A plough is essential for production, but working capital pertains to items used up in the production process. Since a plough is a long-lasting tool used across multiple production cycles, it is categorized as fixed capital.
  • Pair 2 is correct: Fixed capital includes physical assets used over an extended period in the production process. For example, a computer is a long-lasting item used in producing goods or services for several years.
  • Pair 3 is incorrect: Yarn used by a weaver is considered working capital. Working capital involves resources used for daily business operations, such as purchasing raw materials like yarn (thread), paying wages, and covering other operational costs.
  •   Pair 4 is correct: Working capital refers to the resources a business needs for daily operations and short-term expenses, including raw materials, inventory, wages, and other operational costs. Petrol, being consumed during the production process, falls under this category.
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Q . INDUSTRY AND EMPLOYMENT

With reference to the sectors of the Indian economy, consider the following pairs:

Economic activity

Sector

Storage agricultural produce

Secondary

Dairy farm

Primary

Mineral exploration

Tertiary

Weaving cloth

Secondary

 How many of the pairs given above are correctly matched?

a) Only one
b) Only two
c) Only three
d) All four
Answer: b
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Correct Match:

Economic activity

Sector

Storage agricultural produce

Tertiary / Service Sector

Dairy farm

Primary

Mineral exploration

Primary

Weaving cloth

Secondary

  •   Pair 1 is incorrect: The secondary sector focuses on processing raw materials, whereas storage is a service activity, which belongs to the tertiary sector.
  • Pair 2 is correct: Dairy farming is a primary economic activity. This sector is concerned with the extraction of raw materials, and dairy farming involves the production of milk, a raw material.
  •   Pair 3 is incorrect: Mineral exploration is not a part of the tertiary sector, which is dedicated to services. Mineral exploration involves locating mineral deposits, which falls under the primary sector's role in raw material extraction.
  •   Pair 4 is correct: Weaving cloth is a secondary sector activity. This sector is responsible for processing raw materials into finished products, and weaving cloth transforms raw materials like cotton or wool into fabric.
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Q . INDUSTRY AND EMPLOYMENT

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR activities. Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: a
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  • Statement 1 is correct. As per the CSR rules in India, expenditures that benefit the company directly or its employees will not be considered as CSR. The CSR activities should be for the benefit of society at large and not for the direct benefit of the company or its employees.
  • Statement 2 is incorrect. The CSR rules in India do specify a minimum spending requirement on CSR activities. Companies meeting certain criteria are required to spend at least 2% of their average net profits on CSR activities.
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Q . INDUSTRY AND EMPLOYMENT

Consider the following statements with reference to India: 1. According to the 'Micro Small and Medium Enterprises Development (MSMED) Act, 2006, the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the Priority sector. Which of the statements given above is/are correct?

a) 1 Only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: d
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Statement 1 is incorrect:

  •   Ministry of Micro, Small and Medium Enterprises (M/o MSMEs) issued Gazette notification for revised definition and criteria of MSMEs. New definition and criteria to be implemented from July 2020.
  •   Medium enterprise defined as investment in Plant and Machinery or Equipment not exceeding 50 crore rupees and turnover not exceeding 250 crore rupees.

Statement 2 is incorrect:

  •   Bank loans to MSMEs may qualify under the priority sector, but not all such loans automatically qualify.
  •   Specific criteria, such as the size of the loan and the nature of the enterprise, determine whether a loan falls under the priority sector or not.
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Q . INDUSTRY AND EMPLOYMENT

Consider the following statements:
Statement-I: India accounts for 3.2% of global export of goods.
Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
Which one of the following is correct in respect of the above statements?

a) Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I
b) Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I
c) Statement-I is correct, but Statement-II is incorrect
d) Statement-I is incorrect, but Statement-II is correct
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

Which of the following activities constitute real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics 3. A commercial bank lending money to a trading company 4. A corporate body issuing Rupee Denominated Bonds overseas Select the correct answer using the code given below:

a) 1 and 2 only
b) 2, 3 and 4 only
c) 1, 3 and 4 only
d) 1, 2, 3 and 4
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as market-places. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

With reference to casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Provident Fund coverage. 2. All casual workers are entitled for regular working hours and overtime payment. 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the above statements are correct?

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

In the context of any country, which one of the following would be considered as part of its social capital?

a) The proportion of literates in the population
b) The stock of its buildings, other infrastructure and machines
c) The size of population in the working age group
d) The level of mutual trust and harmony in the society
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

a) Coal production
b) Electricity generation
c) Fertilizer production
d) Steel production
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

Disguised unemployment generally means

a) Large number of people remain unemployed
b) Alternative employment is not available
c) Marginal productivity of labour is zero
d) Productivity of workers is low
Answer: c
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Q . INDUSTRY AND EMPLOYMENT

What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector? 1. Setting up of National Investment and Manufacturing zones 2. Providing the benefit of ‘single window clearance’ 3. Establishing the Technology Acquisition and Development Fund Select the correct answer using the codes given below:

a) 1 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? 1. Cement 2. Fertilizers 3. Natural Gas 4. Refinery products 5. Textiles Select the correct answer using the codes given below:

a) 1 and 5 only
b) 2, 3 and 4 only
c) 1, 2, 3 and 4 only
d) 1, 2, 3, 4 and 5
Answer: c
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Q . INDUSTRY AND EMPLOYMENT

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs. Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

Which one of the following is not a feature of Limited Liability Partnership firm?

a) Partners should be less than 20
b) Partnership and management need not be separate
c) Internal governance may be decided by mutual agreement among partners.
d) It is corporate body with perpetual succession
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

Consider the following statements: 1. MMTC Limited is India’s largest international trading organization. 2. Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of Orissa. Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c
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Q . INDUSTRY AND EMPLOYMENT

Which of the following are public sector undertakings of the Government of India? 1. Balmer Lawrie and Company Ltd. 2. Dredging Corporation of India 3. Educational Consultants of India Ltd. Select the correct answer using the code given below:

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

Consider the following statements in respect of the National Rural Employment Guarantee Act, 2005: 1. Under the provisions of the Act, 100 days of employment in a year to every household whose adult members volunteer to do unskilled manual work has become a fundamental right. 2. Under the provisions of the Act, women are to get priority to the extent that one-half of persons who are given employment are women who have asked for work. Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

During the year 2000-01, which one of the following industries recorded highest growth rate in India?

a) Cement
b) Coal
c) Electricity
d) Steel
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

Which one of the following committees recommended the abolition of reservation of items for the small-scale sector in industry?

a) Abid Hussain Committee
b) Narasimham Committee
c) Nayak Committee
d) Rakesh Mohan Committee
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

In the year 2001, the Prime Minister announced a five-year excise duty holiday for industries in

a) cyclone prone coastal Andhra Pradesh
b) border states of North-East
c) earthquake ravaged Kutch district
d) recently formed states of Chhattisgarh and Jharkhand
Answer: c
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Q . INDUSTRY AND EMPLOYMENT

With reference to the Public Sector Undertakings in India, consider the following statements: 1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country. 2. Project and Equipment Corporation of India Limited is under the Ministry of Industry. 3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities. Which of these statements is/are correct?

a) 1 only
b) 1 and 2
c) 2 and 3
d) 3 only
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

Tourism industry in India is quite small compared to many other countries in terms of India’s potential and size. Which one of the following statements is correct in this regard?

a) Distances in India are too far apart, and its luxury hotels are too expensive for Western tourists.
b) For most of the months, India is too hot for Western tourists to feel comfortable.
c) Most of the picturesque resorts in India such as in the North-East and Kashmir are, for all practical purposes, out of bounds.
d) In India, the infrastructure required for attracting tourists is inadequate.
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

There is no independent development of industries in India during British rule because of the

a) absence of heavy industries
b) scarcity of foreign capital
c) scarcity of natural resources
d) preference of the rich to invest in land
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

Consider the following statements: 1. There is persistent investment over time only in select locals. 2. Some areas are agro-climatically less conducive to development. 3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities. 4. Some areas have faced continuous political instability. Which of the above statements are correct?

a) 1, 2 and 3
b) 1, 2 and 4
c) 1, 3 and 4
d) 2, 3 and 4
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

Consider the following statements: Small-scale industries are in most cases, not as efficient and competitive as the large-scale ones. Yet the Government provides preferential treatment and reservations in a range of products to the small firms because small-scale industries 1. provide higher employment on a per unit capital development basis 2. promote a regional dispersion of industries and economic activities 3. have performed better in export of manufactured products than the large-scale ones 4. provide jobs to low-skill workers, who otherwise may not find employment avenues elsewhere. Which of the above statements are correct?

a) 1 and 4
b) 1 and 2
c) 2 and 3
d) 3 and 4
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

Some time back, the Government of India, decided to de-license ‘white goods’ industry. ‘White goods’ include:

a) stainless steel and aluminium utensils
b) milk and milk products
c) items purchased for conspicuous consumption
d) soaps, detergents and other mass consumption goods
Answer: c
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Q . INDUSTRY AND EMPLOYMENT

Which of the following is/are true of bonded labour? (1) It is forced employment in consideration of an advance or interest payment (2) It is employment arising out of any customary or social or hereditary obligation or by reason of birth in any caste or community involved in pledging labour (3) It is for any economic consideration involving loss of freedom of contract leading to forced employment. Choose the correct answer from the codes given below:

a) 1, 2 and 3
b) 1 and 2
c) 1 and 3
d) 2 and 3
Answer: c
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Q . INDUSTRY AND EMPLOYMENT

Scheme of (i) Urban Micro-Enterprises, (ii) Urban Wage Employment and (iii) Housing and Shelter Upgradation are parts of:

a) Integrated Rural Development Programme
b) Nehru Rojgar Yojana
c) Jawahar Rojgar Yojana
d) Prime Minister’s Rojgar Yojana
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

The contribution of India’s small-scale sector to the gross turnover in the manufacturing sector since 1992 has been of the order of:

a) 40%
b) 34%
c) 30%
d) 45%
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

Match List-I with List-II and select the correct answer: List-I (Hazardous industries) A. Glass Industry B. Brassware Industry C. Slate Industry D. Handmade Carpet Industry List-II (Located at) 1. Moradabad 2. Marakpur 3. Ferozabad 4. Mirzapur Codes:

a) A-3; B-1; C-2; D-4
b) A-1; B-3; C-4; D-2
c) A-3; B-1; C-4; D-2
d) A-1; B-3; C-2; D-4
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

The number of industries for which industrial licensing is required has now been reduced to:

a) 15
b) 6
c) 35
d) 20
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

Which of the following places are known for paper manufacturing industry? 1. Yamuna Nagar ?2. Guwahati ?3. Shahabad?4. Ballarpur Choose the correct answer using the codes given below:

a) 1, 2 and 3
b) 1, 2 and 4
c) 1, 3 and 4
d) 2, 3 and 4
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

a) investment pattern has been directed towards capital intensive industries
b) productivity in agriculture has been high enough to induce people to stay with agricultural
c) ceiling on land holdings have enabled more people to own land and hence their preference to stay with agriculture
d) people are largely unaware of the significance of transition from agriculture to industry for economic development
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

The growth rate of which one of the following sectors has very low employment elasticity?

a) Manufacturing
b) Construction
c) Financial services
d) Mixed farming
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

Unemployment which occurs when workers move from one job to another job is known as

a) Seasonal unemployment
b) Frictional unemployment
c) Technological unemployment
d) Cyclical unemployment
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

Which one of the following institutions providing finance to the industrial sector was the first to be set up?

a) Industrial Reconstruction Corporation of India
b) Industrial Finance Corporation of India
c) Industrial Credit and Investment Corporation of India
d) Industrial Development Bank of India
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

The definition of a small-scale industry is based on

a) The market outreach of a unit
b) The size of the sales of a unit
c) The fact whether the products manufactured fall in a list drawn up by the Ministry of Industry
d) The value of the plant and machinery investment in a unit
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

If the capital stock was everlasting, then the rate of depreciation would be

a) High
b) Low
c) Infinite
d) Zero
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

Which sector of development has the highest percentage of the total outlay in the public sector?

a) Agriculture
b) Industry
c) Energy
d) Defense
Answer: d
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Q . INDUSTRY AND EMPLOYMENT

One of the elements mentioned as the strategy for industrial development in the Seventh Five-Year Plan is to usher in ‘sunrise industries’. ‘Sunrise industries’ refers to those industries which have

a) High growth potential and relevance to our needs
b) High employment potential
c) Capacity to face international competition
d) High import substitution potential
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

If instead of wooden ploughs iron ploughs are used it would be an example of

a) Obsolete technology
b) Appropriate technology
c) Redundant technology
d) Ultimate technology
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

A. Infrastructure B. Skilled manpower C. Finance D. Raw materials E. Latest sophisticated technology Of these which is/are the most essential for proper development of an industry?

a) A, B, C, D, E
b) B, C, D
c) Only E
d) A, B, C, D
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

Capital intensive industries

a) Increase employment in rural areas
b) Increase unemployment
c) Give blow to the growth of large-scale industries
d) Provide opportunities for workers’ participation in management
Answer: b
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Q . INDUSTRY AND EMPLOYMENT

Unemployment insurance will result in

a) Maintenance of consumption level
b) Decrease in consumption level
c) Decrease in savings
d) Increase in savings
Answer: a
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Q . INDUSTRY AND EMPLOYMENT

What is the most remarkable aspect of Indian industry since independence?

a) More employment opportunities
b) Increase in production
c) Capacity utilization
d) Diversification
Answer: a
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