Industrial Economics MCQs : This section focuses on the "Industrial Economics". These Multiple Choice Questions (MCQs) should be practiced to improve the Industrial Economics skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
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 barro
D. smith and mill
Question 2
What is referred to the degree of concentration within the industry?
A. market structure
B. market paradigm
C. market concentration
D. monopoly power
Question 3
Most commonly used indicator of concentration is
A. gini coefficient
B. coefficient of variation
C. standard deviation
D. quartile deviation
Question 4
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
Question 5
Less elastic the demand for monopolist’s product, the degree of monopoly power would be …….,
A. more
B. less
C. same
D. zero
Question 6
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
Question 7
Which of the factor does not determine the elasticity of a firm’s product?
A. elasticity of market demand
B. number of firm
C. nature of interaction
D. transaction cost
Question 8
The size of larger industry’s share in total industry sales is known as: School of Distance EducationIndustrial Economics Page 2
A. gini coefficient
B. concentration ratio
C. standard deviation
D. quartile deviation
Question 9
Backward integration is a form of ………
A. vertical integration
B. horizontal integration
C. forward integration
D. none of these
Question 10
An agreement that unites two existing companies into one is known as …..
A. merger
B. oligopoly
C. duopoly
D. competition
Question 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 of these
Question 12
Which of these is a non-geographical factor influencing an industry’s location?
A. raw material
B. power
C. transport
D. capital
Question 13
Industrial inertia is an example of
A. geographical factor
B. non-geographical factor
C. natural factor
D. none of these
Question 14
Who developed central place theory?
A. walter chris
B. j s bain
C. friedman
D. robert lucas
Question 15
Which city is known as “Manchestor of India”?
A. ahmedabad
B. mumbai
C. gujarat
D. delhi
Question 16
Which city is known as the “Silicon Valley” of India?
A. bangalore
B. delhi
C. mumbai
D. gujarat
Question 17
In which year was New Economic Policy introduced in India?
A. 1991
B. 1981
C. 1971
D. 1998
Question 18
Which was the first Iron and Steel plant in India
A. tisco
B. birla
C. rorkela
D. none of these
Question 19
Time taken for an industry to set up a plant and to make it operational is called
A. gestation period
B. production period
C. shut down period
D. none of these
Question 20
…………. Is the speed with which working capital completes its round
A. operating cycle
B. input cycle
C. gestation period
D. shut down period
Question 21
Shares and ploughing back profits are example of
A. ownership funds
B. borrowed funds
C. none of these
D. both of these
Question 22
……….. measures the ability of a company to remain in business
A. liquidity ratio
B. activity ratio
C. leverage ratio
D. profitability ratio
Question 23
………. Is a strong indicator of quality of management?
A. liquidity ratio
B. activity ratio
C. leverage ratio
D. profitability ratio
Question 24
Which ratio shows the ability of a company to pay back its debts?
A. liquidity ratio
B. activity ratio
C. leverage ratio
D. profitability ratio
Question 25
………….. measures how well the company performs in generating the profits.
A. liquidity ratio
B. activity ratio
C. leverage ratio
D. profitability ratio
Question 26
Which one of the following does not come under liquidity ratio?
A. cash coverage ratio
B. current ratio
C. quick ratio
D. debt to equity ratio
Question 27
Which one of the following does not come under profitability ratio?
A. gross profit ratio
B. net profit ratio
C. current ratio
D. return on equity
Question 28
Which is a common method of measuring technological progress?
A. solow residual
B. total product
C. average product
D. gini coefficient
Question 29
……….. refers to the total productivity of all inputs taken together.
A. total factor productivity
B. marginal product
C. average product
D. average revenue
Question 30
Which type of efficiency combines resources with lowest average cost?
A. allocative
B. productive
C. technical
D. social
Question 31
Which efficiency is output maximization from given inputs?
A. allocative
B. productive
C. technical
D. social
Question 32
Who developed the concept of X efficiency?
A. h leibenstein
B. r rodan
C. nurkse
D. lewis
Question 33
Who among the following are associated with dynamic efficiency?
A. h leibenstein
B. r rodan
C. joseph schumpeter
D. lewis
Question 34
Which efficiency takes in to account all the private and external cost and benefits?
A. allocative
B. productive
C. technical
D. social
Question 35
Principal agent problem is commonly associated with which sector of the economy?
A. private
B. public
C. both a and b
D. none of these
Question 36
The Lemons problem was first analysed by
A. h leibenstein
B. r rodan
C. george akerlof
D. lewis
Question 37
What causes adverse selection problem?
A. symmetric information
B. asymmetric information
C. none of these
D. lack of demand and supply
Question 38
Which one of the following does not come under NEP?
A. liberalization
B. globalization
C. privatization
D. socialization
Question 39
Which of these measures were not taken under LPG?
A. disinvestment
B. devaluation
C. allowing fdi
D. monopoly trade practices
Question 40
What is meant by globalization?
A. integrating world into a global village
B. allowing more private investment
C. opening and liberalizing the economy
D. none of these
Question 41
What is meant by liberalization?
A. integrating world into a global village
B. allowing more private investment
C. opening and liberalizing the economy
D. none of these
Question 42
What is meant by privatization?
A. integrating world into a global village
B. allowing more private investment
C. opening and liberalizing the economy
D. none of these
Question 43
Which among the following was introduced due to the Structural Adjustment Program?
A. new economic policy
B. new education policy
C. industrial policy
D. national health policy
Question 44
Which international organisation had offered financial assistance to India during late 1980s?
A. imf and world bank
B. industrial finance corporation
C. international labour organization
D. food and agricultural organization
Question 45
Which market structure is characterized with one seller and large number of buyers?
A. oligopoly
B. monopoly
C. monopolistic competition
D. duopoly
Question 46
Why do government regulate monopolies?
A. prevent excess prices
B. promote competition
C. promote welfare
D. all of these