Question 1

A fishing company was formed in Juneau, Alaska. Over the next decade, a canning plant, a processing plant, and a boat repair facility also opened in Juneau. This is an example of:

Accepted Answer

A)  industry economies of scale 
B)  agglomeration economies 
C)  location quotient 
D)  linkages

Question 2

Six suburban office buildings have been constructed along six consecutive blocks in Roseland, New Jersey. This is an example of:

Accepted Answer

A)  central place pattern 
B)  clustering 
C)  concentric circle 
D)  multi-nuclei

Question 3

Within the framework of the bid-rent model, as rents increase with proximity to the central business district (CBD), the tendency is for development to:

Accepted Answer

A)  spread to the outskirts of the city 
B)  build upward on lots within the CBD to allow multiple tenants 
C)  cease completely 
D)  focus on low-income housing projects.

Question 4

Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive advantage in the amusement industry. Employment in Amusements and Recreation in Amusement City: 54,446; Total Employment in Amusement City: 578,477; Employment in Amusements and Recreation (nationally): 1,381,377; Total Employment (nationally): 106,201,232.

Accepted Answer

A)  0.14; No, the city does not have a competitive advantage in this industry. 
B)  7.24; No, the city does not have a competitive advantage in the industry 
C)  0.14; Yes, the city has a competitive advantage in this industry 
D)  7.24; Yes, the city has a competitive advantage in this industry

Question 5

In contrast to base activities, local economic activities (or secondary activities) serve the local business and households that are recirculating the income derived through the city's economic base. In other words, we can distinguish local economic activities from export activities by thinking about whether or not the activity brings money into the city from outside sources. Which of the following activities is NOT an example of land use for local economic activity?

Accepted Answer

A)  Retail centers 
B)  Restaurants 
C)  Automotive services 
D)  Manufacturing Center

Question 6

A city's economic base can be viewed in terms of a multiplier process, in which the money that is brought in through export activities is then respent within the city. Which of the following economic activities is the least likely to be considered a high-impact or high-multiplier economic base activity?

Accepted Answer

A)  Tourism 
B)  Retirement 
C)  Computer assembly 
D)  Specialized medical services

Question 7

Using the following information, determine the location quotient for Springfield. Employment in Aerospace Products within Springfield: 30,044; Total Employment in Springfield: 208,054; Employment in Aerospace Products (nationally): 474,905; Total Employment (nationally): 106,201,232

Accepted Answer

A)  0.03 
B)  12.10 
C)  15.70 
D)  32.29

Question 8

Cities such as New York are able to host a variety of complex industries because of the development of specialized resources that support their growth. When specialized resources emerge in response to demand from multiple industries, this is referred to as:

Accepted Answer

A)  industry economies of scale 
B)  agglomeration economies 
C)  locational monopoly 
D)  economic inefficiencies

Question 9

The demand for access between land uses is considered the "gravity" that holds a city together. These relationships between land uses are commonly referred to as:

Accepted Answer

A)  linkages 
B)  economic bases 
C)  local economic activities 
D)  economies of scale

Question 10

A new faculty member at the local university pays $1500 per month to rent an apartment in the downtown area. She teaches on campus 3 days a week and works from home the remaining 2 days. On the days in which she must commute, given the heavy traffic congestion, it takes her 2 hours to commute from downtown to campus. According to the assumptions of the bid-rent model, what should this professor be willing to pay in rent per month to live near campus if her hourly wage rate is $25? (In your calculations, assume there are 4 weeks in a given month)

Accepted Answer

A)  $1200 
B)  $1500 
C)  $2100 
D)  $2700

Question 11

A city's potential for growth or its susceptibility to decline is determined by a set of economic activities that the city provides for the world beyond its boundaries. Economists refer to this set of activities as a city's:

Accepted Answer

A)  linkages 
B)  economic base 
C)  local economic activities 
D)  economies of scale

Question 12

Based on the following information, determine the location quotient for Music City and whether this city has a competitive advantage in the entertainment industry. Employment in Entertainment in Music City: 3,020; Total Employment in Music City: 656,785; Employment in Entertainment (nationally): 2,160,970; Total Employment (nationally): 106,201,232.

Accepted Answer

A)  0.23; No, the city does not have a competitive advantage in this industry. 
B)  4.43; No, the city does not have a competitive advantage in the industry 
C)  0.23; Yes, the city has a competitive advantage in this industry 
D)  4.43; Yes, the city has a competitive advantage in this industry

Exam 5: Market Determinants of Value

A fishing company was formed in Juneau, Alaska. Over the next decade, a canning plant, a processing plant, and a boat repair facility also opened in Juneau. This is an example of:

Six suburban office buildings have been constructed along six consecutive blocks in Roseland, New Jersey. This is an example of:

Within the framework of the bid-rent model, as rents increase with proximity to the central business district (CBD) , the tendency is for development to:

Using the following information, determine the location quotient for Springfield. Employment in Aerospace Products within Springfield: 30,044; Total Employment in Springfield: 208,054; Employment in Aerospace Products (nationally) : 474,905; Total Employment (nationally) : 106,201,232

Cities such as New York are able to host a variety of complex industries because of the development of specialized resources that support their growth. When specialized resources emerge in response to demand from multiple industries, this is referred to as:

The demand for access between land uses is considered the "gravity" that holds a city together. These relationships between land uses are commonly referred to as:

A city's potential for growth or its susceptibility to decline is determined by a set of economic activities that the city provides for the world beyond its boundaries. Economists refer to this set of activities as a city's: