Topic Details (Notes format)

Micro, Small and Medium Enterprises (MSMEs)

Subject: Economics

Book: Comprehensive Indian Economy

MSMEs form the backbone of India’s industrial output and job market, especially in rural areas. They face hurdles in credit accessibility, technology adoption, and marketing. Schemes like MUDRA loans aim to ease financing, while cluster development programs promote collaboration. The revised MSME definition (based on turnover) broadens coverage. Key exam themes: analyzing how MSMEs boost local incomes, the role of SIDBI, and reasons behind frequent sickness (lack of economies of scale, poor infrastructure). Reforms to address skill gaps and e-commerce integration can be crucial to uplift MSME competitiveness.

Practice Questions

What does the term “elasticity of demand” measure?

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What is meant by “credit rating”?

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What does “balance of trade” refer to?

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Which economic concept is described as “the next best alternative foregone”?

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Which of the following causes demand-pull inflation?

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What is meant by “marginal propensity to consume”?

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Which of the following is an example of a public sector undertaking (PSU) in India?

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What is the primary goal of a progressive tax system?

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What is the “law of diminishing marginal utility”?

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Which of the following is a feature of a command economy?

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