Chapter 5 Finance 340

The “gravity that draws economic activity into clusters is: Demand for access or proximity
Spatial or distance relationships that are important to a land use are called its: Linkages
Linkages how land use types differ in their locational needs
Cities have tended to grow where: Transportation modes intersect or change
The economic base multiplier of a city tends to be greater if the city is: Larger
The best example of a base economic activity would be a Regional sales office
Important supply factors affecting a city’s growth or growth potential include all of the following except Unemployment rate
Which of these are true about egglomeration economies They resume from demand created by multiple industries,they create a readily available supply of highly specialized goods and labor, they tend to reduce risk in real estate, they occur in large cities.
Agglomeration Economies emergence of specialized resources in response to demand form multiple industries is referred to as agglomeration economies. Example: advanced or specialized financial services
What influences will decrease the level of a bid rent curve at the center of the city? faster travel time
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? Households with the greatest number of commuting workers
A large university is an example of what kind of economic phenomenon Industry economies of scale
Multinuclei City vehicle along with technology of production released the city from its absolute ties to CBD
Burgess Concentric Ring Model. model of urban form was conceived in an era when dominant form of transportation was by rail and moving goods within factories was by elevator. Higher income on the out ring. CBD in the center ring
Hoyt Sector Model
Location Quotient One quick indicator of a community’s economic base. Percentage of total employment of a given industry in a city divided by the percentage of that industry across the USexample (20/9)=2.2 which is 2.2 times the normal and that field is an export item for the community
Concept 1 the demand for access between one urban activity and others is referred to a s the activity’s linkages
Concept 2 the “gravity” that draws ecumenic activity into forming cities is the need for access
Concept 3 Historically, cities tended to form at the intersection of different modes of transportation
Concept 4 The theory underlying the concept of economic base is that cities exist to serve the economic world at large
Concept 5 The size of an economic base multiplier depends on the amount of leakage form the local economy
Leakage money that leaks out of a city from spending elsewhere. The more a city has to offer in goods the less leakage. City must produce and have available
Concept 6 The customary analysis of a city’s economic base tends to focus on external demand, which tends to be a short-term phenomenon
Concept 7 Cost efficiencies that arise in a city due to concentration of an industry are called economies of scale, whereas cost efficiencies arising from the concentration of multiple industries are called agglomeration economies
Concept 8 The economic incentive that gives rise to bid-rent curves is the desire to reduce commuting or travel time.
Economies of scale Cost efficiencies that arise in a city due to concentration of industry.
Agglomeration Economies Cost efficiencies arising from the concentration of multiple industries. More advanced development of agglomeration economies have a greater capacity to withstand industry downturns
Concept 9 Faster travel results in less value to be close to the CBD and a lesser slope of the bid-rent curve. More trips make being close to the CBD more valuable, and a steeper slope. More commuters will cause a higher curve with the same slope. Higher density housing means more trips from a given site or lot. Thus, it tends to increase the slope of the bid-rent curve. A higher hourly wage will cause the proximity to the CBD to be more valuable, thus an increase in the slope.
Concept 10 A person who commutes on foot will always outbid a person who commutes by car for space near downtown because the pedestrian commuter’s time cost of traveling is far greater
Concept 11 The radial or pie slice pattern in the Hoyt sect model of urban form probably can be explained by dominance of the streetcar (fix rail transit) for interurban transportation at the time the model was formulated
Concept 12 The Burgess concentric model of urban form was conceived in a era when the dominant form of transportation was by railway and the principal method of moving goods within factories was by elevator
Concept 13 One of the most profound forces bringing change in urban form in the United States is the automobile. Whereas cars were a novelty in 1915 most households owned one by about 1930
Concept 14 The demand for space for horizontal factories was greatly accelerated in the 1920s by the development of assembly-line production
Concept 15 Modern office structures and retail facilities were not possible before the development of air-conditioningand fluorescent lighting.
Concept 16 The essential feature of a convenience good or central place activity is that households, in acquiring it, go to the closest source. Convenience activities – hair salon, bakery, supermarkets
Concept 17 The location tendency of comparison activities is to cluster whereas the location tendency of convenience activities is to disperse. By clustering business share supporting services.

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