Name: ______________________________________

Write your name above. Answer all the questions below (there is a choice for essay 3), in the space provided. The essays should use complete sentences; otherwise, phrases, lists, and short answers are sufficient. Your raw score (out of 55) will be multiplied by 0.455 to yield your score out of 25 (toward the semester’s total of 100). Do not misspell "its" "it’s" "there" their" or "develop". You have 130 minutes.
 

SHORT ANSWERS

1. [3 points] When we assess

• the utility of public investment in improved transportation infrastructure, or
• the tradeoff between transportation cost and location rent, or
• the reasonableness of an expensive, but speedy, mode of transport (such as air),

2. [1 point] Why do freight rates (e.g., dollars per ton-mile) generally decrease with additional distance traveled?

3. [3 points] Assume that a shipper has the choice of all five major modes of transport: the specific good can be shipped to the specific destination by pipe, boat/barge, rail, truck, or air. What are the three variables of the shipment that determine which mode costs the least?

4. [3 points] Explain "FOB," "CIF," and "uniform delivered" pricing.

5. [6 points] Define (and sketch) a "minimally-connected" network. Suggest a circumstance under which we might expect to find such a network. Define (and sketch) a strictly "hierarchical" network. Suggest a circumstance under which we might expect to find such a network.

6. [6 points] Explain three (of the six) parameters that you could play with in our trade-area exercise to affect the amount of revenue you’d affect your retail outlet to make in its given location. (The exact names that we gave the parameters in the exercise are not important). Explain how each parameter affects the store’s revenue.
 

ESSAYS

1. [15 points] Write an essay about spatial interaction. What is it? What motivates it? List and define the "bases for interaction" between two places. We usually assume that spatial interaction in general, everywhere in the world, is increasing: explain that generalization, in terms of the "bases for interaction." What are the results of interaction: if the level of interaction between two places increases dramatically, what should be the effects on the two places? We’ve used the phrase "economic integration" in the course: what is this, and how does it relate to spatial interaction? How do we predict the future level of interaction between two places — what information must we have, and how would we use that information? {You don’t need to use formulas in this essay; if formulas help you get your point across, feel free to use them}.
 

2. [10 points] Write an essay about cities. Why are there cities (defined loosely as localized areas where all the land is used for dense, non-agricultural activities, where at least 2500 people live)? Why are there cities of different sizes? What influences where cities of different sizes are located, relative to one another? (Present the purely economic reasons — not limited to central-place activities — and then add a little geographic reality such as terrain and water bodies). What effect(s) would you expect declining transportation costs to have on the location of cities of different sizes, relative to one another? {Hint: this essay allows you to discuss the separate concepts of externalities and of central places, and to relate these concepts}.
 

3. [8 points] Answer one of the following two sets of questions.