Urban Economics

1. What are economies of scale?

a) Marginal Cost is lower than average cost
b) Marginal Cost is greater than average cost
c) If a firm or industry’s average cost increases when quantity produced increases
2. Define Gentrification in housing
a) reversing related to changing family structure
b) reversing related to changing employment structure
c) both (a) & (b)
3. What is a significant aspect of Urban Economic Theory compared to Traditional Economic
Theory
a) Concept of Spatiality
b) Concept of Demand Supply
c) Concept of Marginal Cost
4. When the consumption or production of a good causes a benefit/loss to a third party it is
defined as.
a) Positive externality
b) Externality
c) Excess Demand

5. Agglomerate Economies that occur in the form of concentrated availability of a large pool of
specialised, skilled labour making “spin-offs” with low search and other costs are called as
a) Scale Economies
b) Labour Economies
c) Localisation economies
6. Urbanisation economies, are created where firms from a range of industries are able to
benefit from the concentration of which resources
a) Only physical infrastructure &, centres of knowledge and research, labour pools
b) Only intangible goods such as information, knowledge
c) Both (a) & (b)

7. State True or False Transportation gives rise to increased access to specialised services
a) True
b) False

8. Traditional master planning is based on which approach

a) Trend Analysis
b) Optimise agglomeration economies
c) Trend Analysis & Population Projection
9. Which of the following is not a key aspect of planning
a) Identification of areas, which are prone to negative externalities
b) Examination of existing road and rail networks
c) Allocation of space only for employment

10. As per urban economics theory what is the most appropriate source of financing city
development.
a) Land
b) Taxes
c) Water

11. Which of the following Regulations contribute to an artificial decrease in Land Supply
a) Urban Land Ceiling Act
b) Rent Control
c) Both
12. Which of the following are not responsible artificial increase in land consumption
a) Land subdivision regulations
b) Low FSI
c) Rent Control
13. Why is of land management important in field of Urban Economics?
a) It is inseparable from urban planning helps to deliver sustainable growth
b) It helps only in development of Industries
c) It only helps in development of rural areas
14. Which of the following are not key components of Urban Planning
a) Social, Economics, Finance
b) Environment Management, Culture, Intuitions
c) Both (a) & (b)
15. Which of the following dynamics affect the city form directly
a) Transit attracts development
b) Industrial Development
c) Residential Development
16. State True or False TOD doesn’t require multi-agency integration
a) True
b) False
17. Which of the following is not a land use model
a) Sector Model
b) Multi Nuclei Model
c) City Enhancement Model

18. Which of the following is a Global City

a) Tokyo
b) Calcutta
c) Pune
19. In manufacturing sector a bid-rent curve declines with distance from a major highway
a) Declines with distance from a major highway
b) Declines with distances from residential zone
c) Inclines with distances from residential zone
20. Residential density in city centres and suburb doesn’t depends upon which factor
a) Consumer substitution
b) Factor substitution
c) Forest Location