Bladder Chap 5

1. A city's potential for economic and population 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:

• 1. A. linkages

• 1. B. economic base

• 1. C. local economic activities

• 1. D. economies of scale

1. 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:

• 1. linkages

• 1. economic bases

• 1. local economic activities

• 1. economies of scale

1. Historically, the most compelling location for a city to arise has been at the intersection of modes of:

• 1. transportation

• 1. data transmission

• 1. telecommunication

• 1. health care

1. 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 recirculated within the city. Which of the following economic activities is the least likely to be considered a high-recirculation or high- multiplier economic base activity?

• 1. tourism

• 1. retirement

• 1. computer assembly

• 1. specialized medical services

5. 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:

• 1. a higher percentage of local household income is respent within the city

• 1. the larger the city is

• 1. the less isolated the city is from other cities

• 1. the more tourism a city brings in

5. In supporting their local economic base, cities may at times incur expenses from doing business with entities located outside of their local community (e.g., in cities with high tourist activity, souvenirs are likely to come from low-wage countries). These expenses are an example of _____________ from the local economy.

• 0. linkages

• 0. leakages
     

• 0. exports

• 0. agglomeration

5. Activities in a city that serve local businesses and households will recirculate the income derived through a city’s economic base. These types of activities are more commonly referred to as:

• 1. primary activities

• 1. secondary (or local economic) activities

• 1. economic base activities

• 1. export activities

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 least likely to be an example of land use for local economic activity?

• 1. retail centers

• 1. restaurants

• 1. automotive services

• 1. manufacturing plant

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?

• 1. nature of the available labor force

• 1. quality of life within a community

• 1. cooperation of local leadership and government

• 1. city’s export activity

9. Sophisticated firms recognize that their “cost of doing business” can depend on the support of local governments in assuring roads, utilities, reasonable taxation, and compatible land use controls are in place. Based on your understanding of the factors influencing the growth of a city, the previous statement best aligns with which of the following supply-side factors?

• 1. characteristics of the available labor force

• 1. quality of life and leadership within a community

• 1. industry economies of scale

• 1. agglomeration economies