INDUSTRIAL ECONOMICS WORK SHEET

1.The key to bringing together the SCP school and the Chicago school in terms of their thinking
about industrial organization theory was.
Empirical evidence that the SCP model's predictions were correct

the development of game the

Theoretical proof that price theory could explain oligopoly conduct

The development of the New Empirical Industrial Organization

2. Joe Bain and Edward Mason introduced the model of

Monopolistic competition

Structure-conduct-performanc

Dynamic efficiency

Perfect competition

3. According to the SCP paradigm

Advertising is an important element of market structure

Advertising is an important element of conduct

Advertising is an important element of economic performance

Basic market structure

4. Government economic policies

Only impact market structure

Only impact market conduct

Only impact market performance

Impact market structure, conduct and performance

5. Who were the pioneers in the field of SCPP (Structure-Conduct-Performance Paradigm)?

A. mason and j s Bain

B. Lucas and arrow

C. Friedman and baron

D. smith and mill

6. What is referred to the degree of concentration within the industry?

A. market structure B. market paradigm

C. market concentration D. monopoly power

7. Most commonly used indicator of concentration is

A. Gini coefficient B. coefficient of variation

C. standard deviation D. quartile deviation

8. Which indicator is the sum of square of ratio of firm size to industry size?

A. laspeyers index B. paasches index

C. fishers index D. herfindahl index

9. Whose index of monopoly power is given as p – mc/p?

A. lerner’s index B. paasche’s index

C. fisher’s index D. herfindahl index

10. The size of larger industry’s share in total industry sales is known as:
A. gini coefficient B. concentration ratio

C. standard deviation D. quartile deviation

11. What is known as the technique of discovering the optimal placement for an industry?

A. industry analysis B. optimal analysis

C. location analysis D). NONE

12. Which of these is a non-geographical factor influencing an industry’s location?

A. raw material B. power

C. transport D. capital
13. Industrial inertia is an example of

A. geographical factor B. non-geographical factor

C. natural factor D. none of these

14. Who developed central place theory?

A. walter chris B. j s bain

C. friedman D. robert lucas

15_________________ is concerned with the information content of the subject matter of Industrial
economics

A) Analytical element B).Descriptive element

C).All of the above D).None of the above

16.________________ deals with the information about the competitors, natural resources and factors of
production, and government rules and regulations related to the concerned industry.

A. Descriptive element of Industrial Economics

B. Analytical element of Industrial Economics

C. All of the above

D. None of the above

17.________________deals with topics such as pricing, choice of techniques, location of plant,

investment planning, hiring and firing of labour, financial decisions, product diversification, and so on.

A. Descriptive element of Industrial Economics

B. Analytical element of Industrial Economics

C. All of the above

D. None of the above

18_________________ of industrial economics is concerned with the business policy and decision-
making.

A. Descriptive element B. Analytical element

C. all of the above D. None of the above

19_______________ is an organization owned by one or jointly by a few or many individuals which

is/are engaged in productive activity of any kind for the sake of profit or some other well-defined aim.
A. The Industry B. The Household

C. The firm D. The Market

20________________ is a group of firms producing a single homogeneous product and selling it in a

common market

A. The Industry B. The Firm

C. The Household D. The Market

21________________a group of sellers or of close substitute outputs who supply to a common group of
buyers

A.The Industry B.The Market

C.The Firm D.The Household

22.Composition of the sellers, the buyers and their geographical location along with the industry

A. The Firm B. The Household

C. The Industry D. The Market

23.The influence that any particular buyer or seller can exercise over the price of a product

A. Product differentiation B. Market power

C. Marketing Mix D. All of the above

24. Structural attributes

A. Nature of Sellers and Buyers B. Barriers to Entry of New Firms

C. Product Differentiation D. All of the above

25.Behaviour of the firm prevailed for various structure of the firm

A. Advertising B. Research and Development

C. Pricing D. All of the above

26________________ of an industry depends on basic conditions, such as technology and demand

for a product.

A. Technology B. Structure

27 _________________ depends on the structure (factors that determine the competitiveness of the
market).

A. Market Power B. Barriers to entry C. Conducts D. All

28.The expenses of trading with others above and beyond the price, such as the cost of writing and
enforcing contracts.

A. Prime cost B. Transaction cost

C. Marginal cost D. Accounting cost

29.According to Williamson's theory of the firm, the advantages of using the market include

Economies of scale in production

Economies of scope in production

Purchasing inputs in perfectly competitive markets

All of the above

30. The HHI is preferable to the four-firm concentration ratio as a measure of market power
because

It’s easier to collect the data to calculate the HHI

It takes into account difference in the market shares of the top firms in the industry

It is less sensitive to changes in the relative shares of the top four firms in an industry

The government only publishes the HHI but not the four firm concentration ratio

31. According to Joe Bain, the most important barrier to entry was

Economies of scale

Absolute cost advantage

Product differentiation

Perfect capital markets

32. Which among the following is not the feature of Weber’s theory of industrial location?

a. Pull of industry towards a particular geographical region b. Deductive approach

c. Inductive approach d. Material Index

33. Which among the following is not the feature of Florence’s theory of industrial location?

a. Inductive approach

b. Occupational distribution of population determines location of industry

c. Index of the degree of concentration of an industry in a particular region

d. Deductive approach

34. One of the following is not CORRECT about Industrial economics?

A. Industrial economics is less formal B. It is more inductive in nature.

C. It is an active discipline

D. It goes into operational details of production and distribution

F. None of the above

35.One of the following is correct about Industrial economics

A. It is is a distinctive branch of economics, which deals with the economic problems of firms and
industries, and their relationships with a society

B. It is considered as being primarily an elaboration of, and development from, the traditional theory of
the firm by some economists

C. It is best defined as the application of microeconomic theory to the analysis of firms, markets and
industries.

D. Considered by some economist as if it does not really exist as a separate discipline, that simply
regarded as a differentiated microeconomics.

E. All could be an answer