Urban Economics
\nMultiple Choice
\n1. Which\tof\tthe\tfollowing\twould\tbe\tan\texample\tof\ta\tresources-oriented
\nindustry?
\na. Bottled\tsoft\tdrinks
\nb. Law\tfirms
\nc. Lumber
\nd. Residential\tconstruction
\n2. Which\tof\tthe\tfollowing\tis\tnot a\treason\twhy\tcities\ttend\tto\tform?
\na. Constant\treturns\tto\tscale\tin\tproduction
\nb. Comparative\tadvantage\tin\tproduction
\nc. Economies\tof\tscale\tin\texchange
\nd. Knowledge\tspillovers
\n3. Cities\tlike\tBoston\tand\tWashington\tDC\thave\tmuch\thigher\trents\tnear\ttheir\tcity
\ncenters\tand\tnear subway\tlines.\tThis\tphenomenon\tis\tan\texample\tof
\na. Firm\tclustering
\nb. Constant\treturns\tto\tscale\tin\tproduction
\nc. Locational\tequilibrium
\nd. Input\tsharing
\n4. Research\tstudies\thave\tfound\tthat\tpatent\tintensity\tis\tpositively\tcorrelated
\nwith\temployment\tand\temployment\tdensity across\tcities.\tThis\tevidence
\nsupports\tthe\texistence\tof
\na. Knowledge\tspillovers
\nb. Labor\tmarket\tmatching
\nc. Labor\tpooling
\nd. Input\tsharing
\n5. Economies\tof\tscale\tare\tmost\tlikely\tto\tbe\tfound\tin\ta\tfirm\twith
\na. Many\tworkers
\nb. High\tfixed\tcosts
\nc. Division\tof\tlabor
\nd. All\tof\tthe\tabove
\nShort Answer
\n6. Consider\ta\tfarming\tregion\tsurrounding\ta\tmarket.\tFarmers\tcan\tgrow\tand\tsell
\neither\twatermelons\tor\tlumber.\tThe\tfarmland\tis\tequally\tproductive,\tso\ta\tsingle
\nacre\tcan\tproduce\t1\tton of\twatermelons\tor\t1\tton\tof\tlumber\tin\ta\tmonth.\tThe\ttable
\nbelow\tshows the\ttransportation\tcosts\tand\tmarket\tprices\tof\teach\tcrop.
\nIn\tthe\tgraph\tbelow\tdo\tthe\tfollowing.
\ni. Draw\tthe\trent\tcurve\tfor\twatermelons\tand\tthe\trent\tcurve\tfor\tlumber.
\nii. Label\teach\tcurve\tclearly\tand\tmark\tthe\tX\tand\tY\tintercepts.
\niii. Indicate\tthe\tregions\tin\twhich\teach\tcrop\twill\tbe\tgrown.
\niv. Label\tthe\tdistance\tfrom\tthe\tmarket\tat\twhich\tfarmers\tare\tindifferent
\nbetween\tgrowing\twatermelons\tand\tlumber.
\nv. Clearly\tidentify\tthe\tresulting\tbid-rent\tcurve\tfor\tthe\tregion.
\nTransportation\tCost\/ton Market\tprice\/ton
\nWatermelons 60 90
\nLumber 30 60
\n7. List\tfive\tcauses\tof\tfirm clustering.
\n8. If\ta\tfirm\tis\tmarket-oriented,\twhich\ttransportation\tcosts\tare\thighest?
\n0″
\n10″
\n20″
\n30″
\n40″
\n50″
\n60″
\n70″
\n80″
\n90″
\n100″
\n0″ 0.5″ 1″ 1.5″ 2″ 2.5″ 3″
\nRent%
\nDistance%to%market%
\n9. The\tbasic\turban\tmodel\twe\tstudied\tassumed\ta\tfixed\tpopulation,\tagricultural\tland,
\nand\tno\tmigration.\tAccording\tto\tthe\tmodel\twhat\thappens\tto\teach\tof\tthese
\nmeasures as\tthe\tdistance\tfrom\tthe\tCBD\tdecreases?
\n(a)\tPrice\tper\tsquare\tfoot\tof\tfloor\tspace
\n(b)\tDwelling size
\n(c)\tLand\tprice\tper\tacre
\n(d)\tBuilding\theight
\n(e)\tCommuting\tcost\tper\tmile
\n(f)\tTotal\trent
\n(g)\tDisposable\tincome
\n(h)\tPopulation\tdensity
\n(i)\tDwellings\tper\tacre
\n(j)\tAgricultural\trent
\n10. Suppose\tinnovations\tin\tfarming\tlead\tto\tan\tincrease\tin\tagricultural\tland\trent\tfrom
\nrA0 to\trA1.\tAnswer\tthe\tfollowing\tquestions\tusing\tthe\tpredictions\tof\tthe\turban
\nmodel.\tAssume\tthat\tthe\tsupply-demand\tequilibrium\tholds,\tand\tthat\tthe\tcity\u2019s
\npopulation\tmust\tfit\twithin\tits\tboundary.
\n(a) Illustrate\tthe\teffects\tof\tthe\tincrease\tin\tland\trent\ton\tthe\tdiagram\tbelow.\tBe
\nsure\tto\tlabel\tthe\tchange(s)\tto\tthe\tcity\tboundary,\t\ufffd\u0305,\tclearly.
\n(b) What\thappens\tto\tthe\tbuilding\theights?
\n(c) What\thappens\tto\tdwelling\tsizes?<\/p>\n","protected":false},"excerpt":{"rendered":"
Urban Economics Multiple Choice 1. Which of the following would be an example of a resources-oriented industry? a. Bottled soft drinks b. Law firms c. Lumber d. Residential construction 2. Which of the following is not a reason why cities Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-428077","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/428077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=428077"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/428077\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=428077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=428077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=428077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}