Question 1

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:
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.

Accepted Answer

As rents increase with proximity to the CBD, developers may choose to build upward on lots within the CBD to allow for multiple tenants. This is because higher rents justify the cost of constructing taller, more efficient buildings that can accommodate more tenants per square foot. This can be seen in cities with high land values and limited space, where vertical expansion is often the only viable option for meeting demand for commercial and residential space.

Question 2

According to the bid-rent model,which of the following changes in the model's underlying assumptions would most likely result in a decrease in rents for properties closest to the central business district (CBD)?
A)An increase in an individual's hourly wage
B)An increase in the average traveling speed of the individual's commute
C)An increase in the number of households attempting to live in the area
D)An increase in the number of days an individual must commute to work

Accepted Answer

An increase in the average traveling speed of an individual's commute would make it easier and quicker for people to travel from further distances, potentially reducing the demand and consequently the rents for properties closest to the central business district (CBD). This is because the bid-rent model suggests that the closer a property is to the CBD, the higher the rent will be due to higher demand for shorter commutes. If commuting becomes easier, living further away becomes more viable, decreasing the demand for close proximity and thus reducing rents near the CBD.

Question 3

Most research oriented universities have many different colleges,each with separate administrations,students,curricula,and facilities.However,the university continues to exist as a total unit because of:
A)industry economies of scale
B)agglomeration economies
C)location quotient
D)linkages

Accepted Answer

A

Question 4

The location of competitors within a particular land use area may be influenced by whether the types of services and products are convenience activities or comparison activities.Which of the following is an example of a comparison activity?
A)Supermarket
B)Coffee boutique
C)Fast-food restaurant
D)Apparel store

Accepted Answer

Apparel stores generally offer products that require more time and consideration to purchase such as trying on clothes, comparing different styles and sizes, and considering quality and price. Therefore, they are considered comparison activities. Supermarkets, coffee boutiques, and fast-food restaurants are examples of convenience activities where products and services are purchased quickly and easily with less consideration and comparison.

Question 5

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

Accepted Answer

The economic base refers to the set of economic activities that a city provides for the world beyond its boundaries. These activities serve as the foundation for the city's economy and determine its potential for growth or decline. The economic base includes industries such as manufacturing, transportation, and professional services that generate income for the city from outside sources, in addition to the local economy.

Question 6

The growth of the motion picture industry in Los Angeles,the petrochemical industry in Houston,the software industry in "Silicon Valley," are all examples of how the growth of an industry within a city can create cost advantages for future growth.Economists refer to this phenomenon as:
A)industry economies of scale
B)agglomeration economies
C)location quotient
D)linkages

Accepted Answer

The answer of The growth of the motion picture industry...

Question 7

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

Accepted Answer

The answer of A city's economic base can be viewed...

Question 8

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

Accepted Answer

The relationships between land uses that enable access between them are commonly referred to as linkages. This includes roads, public transportation, sidewalks, and other modes of travel that connect people to different parts of the city. These linkages are essential for economic activity and the functioning of the city as a whole.

Question 9

Because a city's output capacities change slowly over time,it is important to understand the supply side (long-run)factors affecting urban growth.Which of the following would NOT be considered a supply-side factor that impacts a city's economic growth?
A)Nature of the available labor force
B)Quality of life within a community
C)Cooperation of local leadership and government
D)City's economic base

Accepted Answer

The answer of Because a city's output capacities change slowly...

Question 10

Six suburban office buildings have been constructed along six consecutive blocks in Roseland,New Jersey.This is an example of:
A)central place pattern
B)clustering
C)concentric circle
D)multi-nuclei

Accepted Answer

The construction of office buildings along consecutive blocks in a specific area, like Roseland, New Jersey, is an example of clustering. This is because the buildings are grouped together in one area rather than being spread out.

Question 11

Using the following information,determine the location quotient for this industry.Percentage of employment in financial services industry within the local community: 15%,Percentage of employment in financial services industry for the entire U.S.: 4.4%.
A)0.3
B)3.4
C)10.6
D)19.4

Accepted Answer

The location quotient (LQ) is calculated by dividing the percentage of local employment in a specific industry by the percentage of employment in that industry for a larger area or the entire country. In this case, LQ = (15% / 4.4%) = 3.4.

Question 12

Providers of convenience activities find it profit-maximizing to disperse over the region of potential customers to the point where each establishment is equidistant from another and is separated by the minimum distance that allows sufficient customers to support each establishment.The resulting pattern of establishment locations is referred to as:
A)central place pattern
B)clustering
C)concentric circle
D)multi-nuclei

Accepted Answer

The described pattern of establishment locations fits the definition of a central place pattern, where establishments are dispersed to cover the region of potential customers and are separated by the minimum distance needed to support each establishment. Clustering refers to a pattern where establishments are grouped closely together, while concentric circle and multi-nuclei patterns are different ways of organizing space and are not relevant to the situation described in the question.

Question 13

Which of the following models of urban form is characterized by radial corridors or wedges representing the pattern of residential land use in relation to the location of the central business district (CBD)?
A)Bid-rent model
B)Concentric circle model
C)Sector model
D)Multi-nuclei model

Accepted Answer

The sector model of urban form is characterized by radial corridors or wedges representing the pattern of residential land use in relation to the location of the central business district (CBD). This model was proposed by Homer Hoyt in 1939 and suggests that urban growth is controlled by transportation routes and the location of industries, leading to the development of residential zones in wedge-shaped sectors emanating from the CBD.

Question 14

The magnitude of an economic base multiplier depends upon the amount of money that "leaks" out through expenditures outside of the city limits.The economic multiplier tends to be higher with each of the following EXCEPT:
A)A higher percentage of local household income is respent within the city.
B)The larger the city is.
C)The less isolated the city is from other cities.
D)The more tourism a city brings in.

Accepted Answer

The economic multiplier tends to be lower when a city is less isolated because more money leaks out to nearby cities through purchases and investments, reducing the multiplier effect within the city itself.

Question 15

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.Which of the following activities is NOT an example of land use for local economic activity?
A)Retail centers
B)Restaurants
C)Automotive services
D)Regional office center

Accepted Answer

Regional office center is not an example of land use for local economic activity as it serves a larger region or area beyond the locality. The other options - retail centers, restaurants, and automotive services - are all examples of local economic activities that serve the local community.

Question 16

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

Accepted Answer

The opening of multiple related businesses in the same location is a prime example of agglomeration economies, which occur when businesses in close proximity benefit from shared resources, such as labor, infrastructure, and expertise. The canning plant, processing plant, and boat repair facility are all related to the fishing industry and can benefit from being located near each other.

Question 17

An early model of land use is the concentric ring model of urban form developed by E.W.Burgess.Which of the following is closest to the downtown area of the central business district (CBD)?
A)Blue-collar residential land use.
B)A zone of transition containing warehousing and other industrial land uses exists between the downtown area and the residential area.
C)White-collar clerical residential land use.
D)Executive residential land use.

Accepted Answer

The concentric ring model by E.W. Burgess places the zone of transition, which includes warehousing and industrial uses, closest to the CBD, just outside the downtown area.

Question 18

An individual works downtown and pays $600 per month in rent for an apartment located 10 miles from her office.She has calculated that she spends 30 minutes per day driving each way to the office and it costs her $4 per day in gas and lost productivity.Using the framework of the bid-rent model,how much would she be willing to pay for an apartment downtown,assuming a 20 workday month?
A)$80
B)$440
C)$520
D)$680

Accepted Answer

Using the bid-rent model, people are willing to pay more for housing that is closer to the central business district (CBD) due to lower transportation costs and higher accessibility to amenities. In this scenario, the individual is currently paying $600 per month for an apartment 10 miles away from her office, which translates to $20 per day for transportation costs and lost productivity.

Assuming she moves downtown, her transportation costs would decrease significantly since she would no longer need to drive. If we assume she spends an extra 30 minutes per day walking or taking public transportation instead, she would save $4 per day in gas but still lose $4 per day in lost productivity.

Using a 20 workday month, her total savings would be 20 x $4 = $80 for gas minus 20 x $4 = $80 for lost productivity, for a net savings of $0. Therefore, she would be willing to pay the same amount of rent downtown as she currently does, which is $600 per month. However, if we factor in the time savings of not having to commute, she may be willing to pay a higher rent. Assuming she values her time at $20 per hour, she would be willing to pay an additional $10 per day (30 minutes x $20 per hour / 60 minutes) for the time savings, or a total of $200 per month. Therefore, her total willingness to pay for an apartment downtown would be $600 + $200 = $800 per month, which is closest to option (D) $680 per month.

Question 19

According to the bid-rent model,which of the following individuals would be the one most likely to live closest to the central business district (CBD)? (Hint: Assume that work locations are located adjacent to each other at the center of the CBD)
A)A barista at the local coffee shop who uses a car to commute.
B)A doctor at the city hospital who uses a car to commute.
C)A barista at the local coffee shop who must walk to work.
D)A doctor at the city hospital who must walk to work.

Accepted Answer

The answer of According to the bid-rent model,which of the...

Question 20

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

Accepted Answer

Agglomeration economies refer to the benefits that arise from the concentration of industries in a particular location. These benefits can include access to a skilled workforce, specialized suppliers and other resources, as well as technological spillovers and knowledge sharing. This concentration can create a virtuous cycle of growth and innovation, leading to the emergence of specialized resources that support the growth of multiple industries.

Quiz 5: Market Determinants of Value

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:

According to the bid-rent model,which of the following changes in the model's underlying assumptions would most likely result in a decrease in rents for properties closest to the central business district (CBD) ?

Most research oriented universities have many different colleges,each with separate administrations,students,curricula,and facilities.However,the university continues to exist as a total unit because of:

The location of competitors within a particular land use area may be influenced by whether the types of services and products are convenience activities or comparison activities.Which of the following is an example of a comparison activity?

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:

The growth of the motion picture industry in Los Angeles,the petrochemical industry in Houston,the software industry in "Silicon Valley," are all examples of how the growth of an industry within a city can create cost advantages for future growth.Economists refer to this phenomenon 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:

Because a city's output capacities change slowly over time,it is important to understand the supply side (long-run) factors affecting urban growth.Which of the following would NOT be considered a supply-side factor that impacts a city's economic growth?

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

Using the following information,determine the location quotient for this industry.Percentage of employment in financial services industry within the local community: 15%,Percentage of employment in financial services industry for the entire U.S.: 4.4%.

Which of the following models of urban form is characterized by radial corridors or wedges representing the pattern of residential land use in relation to the location of the central business district (CBD) ?

The magnitude of an economic base multiplier depends upon the amount of money that "leaks" out through expenditures outside of the city limits.The economic multiplier tends to be higher with each of the following EXCEPT:

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.Which of the following activities is NOT an example of land use for local economic activity?

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

An early model of land use is the concentric ring model of urban form developed by E.W.Burgess.Which of the following is closest to the downtown area of the central business district (CBD) ?

According to the bid-rent model,which of the following individuals would be the one most likely to live closest to the central business district (CBD) ? (Hint: Assume that work locations are located adjacent to each other at the center of the CBD)

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: