Question
With reference to the ‘dwarf firms’,
consider the following statement: I. Firms employing less than 100 workers. II. It account for more than half of all the firms in the organized manufacturing sector. III. These are the biggest contributor to the economy in terms of employment and productivity. Which of the statements given above is/are NOT correct?Solution
Statement 1 is correct - Firms that are both small (less than 100 workers) and older than ten years are categorized as dwarfs firms. Statement 2 is correct - The dwarf firms account for half of all the firms in organized manufacturing by number. Hence, Despite the dominance of dwarf firms in economy their share in Net Value Added (NVA) or productivity and employment is very small (i.e 7.6%). In contrast, young, large firms (firms that have more than 100 employees and are not more than 10 years old) account for only 5.5% of firms by number but their contribution to the economy is higher than dwarf firms i.e (21.2% of the employment and 37.2% of the NVA). Firms that are able to grow over time to become large are the biggest contributors to employment and productivity in the economy. Statement III is not correct - Dwarfs that remain small despite becoming older remain the lowest contributors to employment and productivity in the economy.
While calculating Pearson's correlation coefficient, the following values are obtained for 25 pairs of observations. It was later discovered that two pa...
When the price of a commodity decreases, and its demand curve forms a rectangular hyperbola, what happens to the total expenditure on that commodity?
For a frequency distribution if Coefficient of variation is 5, standard deviation is 2 and Karl Pearson’s coefficient of skewness is 0.5, the value of...
The government provides public goods because
In which of the following market structure Quantity is maximum?
The Fisher Effect assumes that the    Â
The costs of inflation are?
Which of the following Herfindahl-Hirschman Index is most consistent with monopoly?
The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
Relevant for Exams:
