A large university is an example of what kind of economic phenomenon


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Which of these are true about agglomeration economies


1. The “gravity” that draws economic activity into clusters is:

a.Common laws and regulations.

b.Common language.

c.Demand for access or proximity.

d.The cost of land.



2.Spatial or distance relationships that are important to a land use are called its:







3.Cities have tended to grow where:

a.Transportation modes intersect or change.

b.Transportation is uninterrupted.

c.People are concentrated.

d.There is ample land and energy.

e.There is demand for economic goods.


4.The economic base multiplier of a city tends to be greater if the city is:



c.Less isolated from other cities.


e.Less diversified.


5.The best example of a base economic activity would be a:


b.Department store.

c.Fire department.

d.Large apartment complex.

e.Regional sales office.


6.Important supply factors affecting a city’s growth or growth potential include all of the following except the:

a.Unemployment rate.

b.Business leadership.

c.The presence of any industry economies of scale.

d.Labor force characteristics.

e.Education system.


7.Which of these are true about agglomeration economies?

a.They result from demand created by multiple industries.

b.They create a readily available supply of highly specialized goods and labor.

c.They tend to reduce risks in real estate.

d.They occur in larger cities.

e.All of the above.


8.Which of these influences will decrease the level of a bid-rent curve at the center of the city?

a.Faster travel time.

b.Higher average wage rate.

c.Increased the number of trips per household.

d.Larger number of households bidding.

e.None of these.


9.In a system of bid-rent curves, assuming that households are identical except for the feature noted, which of these prospective bidders will bid successfully for the sites nearest to the CBD?

a.Households with the greatest number of commuting workers.

b.Households with the lowest income.

c.Households with superior means of transportation.

d.Households that arrive in the city last.

e.Households requiring more land.


10.A large university is an example of what kind of economic phenomenon?

a.Convenience activity.

b.Comparison activity.

c.Industry economies of scale.

d.Secondary or local economic activity.

e.The quality of life activity.

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