Question

Which of the following statements is correct?

1. entrepreneurship result in increasing the spectrum and scope of economic activities
2. entrepreneurship doesn't result in increasing the spectrum and scope of economic activities

विकल्प

• Only statement I is correct

• Only statement II is correct

• Both (1) and (2) correct

• None of the above

Answer 1

Only statement I is correct

Explanation -

Entrepreneurship contributes significantly to a country's economic progress. Diversification of economic activities is aided by entrepreneurship. This diversification can be felt on a global, sectoral, and technological level. On the demand and supply sides, they break the vicious loops (of low levels). For example, if domestic demand is low, production and employment will remain low, resulting in low income and, as a result, low demand. Entrepreneurs can interrupt the cycle by focusing production on export markets. Similarly, if supply is restrained by a lack of resources, for example, entrepreneurs might boost production capacity and, if necessary, import the necessary resources, raw materials, or technology.