Consider the following factors regarding an industry1. Capital investment2. Business turnover 3. Labour force4. Power consumption Which of these determine the nature and size of the industry?
✓ Correct answer: b) 1, 2 and 4
ExplanationThe nature and size of an industry are determined by:Capital investment in an industry is a significant determinant of its size and the type of production it can undertake.Higher capital investment often implies larger-scale operations and the ability to adopt more advanced technologies.Business turnover represents the total value of sales, is a direct measure of the scale of economic activity within the industry.A higher turnover indicates a larger industry.Power consumption is a good indicator of the scale of operations and the type of industry.Energy-intensive industries, like manufacturing or heavy industries, will consume more power.While the number of workers can indicate an industry’s labor intensity, it does not always deter-mine the overall size.Some in- dustries, like IT or pharmaceuticals, have high turnover and cap- ital investment but a relatively smaller workforce.95
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