University of Washington                   Geography 207: Economic Geography   (Professor Harrington)                                                  Spring 2000

FIRST HOUR TEST

Answer each of the following questions by marking the letter on your machine-readable forms that correspond to the best answer. Turn in this sheet and your answer sheet.
 

1. Which of the following is the subject matter of geography?

  1. distributions of physical, social, and human-built components of the earth, their determinants, and their relationships
  2. patterns and processes of natural-resource extraction and use
  3. the production, consumption, and distribution of goods, services that are explicitly traded for one another or for currency
  4. the social and political institutions and conventions that underlie economic activity (e.g., the ownership of property, labor, and capital), and how these institutions and conventions determine the distribution of commodities among human societies
  5. the location of production and consumption, determinants of flows among these locations, and the ways that production, consumption and distribution reflect and effect the development of places
2. Which of the following is the subject matter of economic geography?
  1. distributions of physical, social, and human-built components of the earth, their determinants, and their relationships
  2. patterns and processes of natural-resource extraction and use
  3. the production, consumption, and distribution of goods, services that are explicitly traded for one another or for currency
  4. the social and political institutions and conventions that underlie economic activity (e.g., the ownership of property, labor, and capital), and how these institutions and conventions determine the distribution of commodities among human societies
  5. the location of production and consumption, determinants of flows among these locations, and the ways that production, consumption and distribution reflect and effect the development of places
3. Which of the following is the subject matter of economics?
  1. distributions of physical, social, and human-built components of the earth, their determinants, and their relationships
  2. patterns and processes of natural-resource extraction and use
  3. the production, consumption, and distribution of goods, services that are explicitly traded for one another or for currency
  4. the social and political institutions and conventions that underlie economic activity (e.g., the ownership of property, labor, and capital), and how these institutions and conventions determine the distribution of commodities among human societies
  5. the location of production and consumption, determinants of flows among these locations, and the ways that production, consumption and distribution reflect and effect the development of places
4. Which of the following is the subject matter of political economy?
  1. distributions of physical, social, and human-built components of the earth, their determinants, and their relationships
  2. patterns and processes of natural-resource extraction and use
  3. the production, consumption, and distribution of goods, services that are explicitly traded for one another or for currency
  4. the social and political institutions and conventions that underlie economic activity (e.g., the ownership of property, labor, and capital), and how these institutions and conventions determine the distribution of commodities among human societies
  5. the location of production and consumption, determinants of flows among these locations, and the ways that production, consumption and distribution reflect and effect the development of places
5. In the circular flow of capitalist production and consumption, what are the two flows from households to producers? (select two)
  1. finished products
  2. intermediate products
  3. money in return for production factors
  4. money in return for products
  5. the rights to use production factors
6. In the circular flow of capitalist production and consumption, what are the two flows from producers to households? (select two)
  1. finished products
  2. intermediate products
  3. money in return for production factors
  4. money in return for products
  5. the rights to use production factors
7. In accounting for Gross Domestic Product (or the total income of any territorial unit), which of the following is the set of components used?
  1. total supply and demand
  2. money supply, present value of natural resources, value of physical infrastructure
  3. exports, government expenditure, imports, private consumption, private investment
  4. investment income, self-employment income, wage and salary income
  5. government reserves, value of physical infrastructure, private financial assets
8. What was the approximate level of U.S. GDP in 1998?

a) $8.8 billion

b) $88 billion

c) $8.8 million

d) $8.8 trillion

e) $88 trillion

9. What’s the opportunity cost of a product, resource, or service?

  1. the cost of the physical inputs used to produce it
  2. the cost of producing it
  3. the value of the best alternative use of the resources used to produce or extract it
  4. the value of the capital resources allocated to the product, service, or resource
  5. the value of the direct and indirect labor used to produce or extract it
10. What’s the marginal cost of an item?
  1. the average cost of production
  2. the average revenue received for the item
  3. the cost of producing a little more of it
  4. the cost of producing it
  5. the selling price under a monopoly


11. Look at Figure 1 (a supply/demand graph). The line that is described by points A and C has a slope

a) < 0 b) = 0 c) > 0

12. If Figure 1 is a typical supply/demand graph, which line should be the supply curve?

a) AB b) AC c) BC

d) CQ1 e) P2C

13. If Figure 1 is a typical supply/demand graph, why does AC slope downward?

  1. Purchasers buy more of a commodity if its price is lower.
  2. It costs more to produce more.
  3. It costs less per unit to produce less.
  4. It costs less to produce more.
  5. Demand falls to meet supply.
14. If Figure 1 is a typical supply/demand graph, why does BC slope upward?
  1. It costs less to produce more.
  2. Demand falls to meet supply.
  3. It costs less per unit to produce less.
  4. It costs more to produce more.
  5. Purchasers buy more of a commodity if its price is lower.
15. If Figure 1 is a typical supply/demand graph, why does BC slope upward?
  1. In the short run, some factors of production cannot be added to match increases in production, so there are diminishing returns to the factors that are added.
  2. The opportunity costs of consuming products increase as more are consumed.
  3. Costs of transportation increase as production occurs farther from the market center.
  4. Costs of transportation decrease as production occurs farther from the market center.
  5. Economies of scale reduce the marginal costs.
16. How would one best characterize the analytic approach we used in class when we juxtaposed the time series maps with the single time-period map in our hog-farming case study?
  1. By looking at the growth exhibited in the time series, we were able to identify the location of increased consumer demand for pork.
  2. Even though the maps were for different regions, the economic patterns were the same.
  3. In viewing the time-series set of maps, we were concerned only about the changing amount of the activity depicted, not about the geographic distribution; we assumed that the geographic distribution of the single map was the "true" distribution.
  4. We were comparing the distributions of two phenomena across the same region, using the same areal sub-units, in an attempt to identify one phenomenon based on its distribution relative to a known phenomenon.
17. In the hog-farming case, which of the following would help explain the economic concentration of hog production over the past 25 years?
  1. Organizational and technological changes in hog farming have allowed large-scale, specialized farms to reduce their costs faster than farms that raise hogs as a "side line" in addition to several other crops.
  2. North Carolina has a warmer climate than the Midwest, allowing hogs to fatten with less time and feed.
  3. North Carolina exempted hog farmers from legal liability in claims that their activities harmed their neighbors.
  4. Americans eat much more pork per person now than several years ago.
  5. A few, huge pork processing plants were built in southeastern North Carolina.
18. In the hog-farming case, which of the following would help explain the geographic concentration of hog production within North Carolina (from a dispersed pattern in the eastern part of the state to a dominance of the southeastern part of the state) over the past 14 years?
  1. Organizational and technological changes in hog farming have allowed large-scale, specialized farms to reduce their costs faster than farms that raise hogs as a "side line" in addition to several other crops.
  2. North Carolina has a warmer climate than the Midwest, allowing hogs to fatten with less time and feed.
  3. North Carolina exempted hog farmers from legal liability in claims that their activities harmed their neighbors.
  4. Americans eat much more pork per person now than several years ago.
  5. A few, huge pork processing plants were built in southeastern North Carolina.
Y = C + I + G + X - M

19. In the identity above, what’s C?

  1. private-sector consumption of goods and services
  2. the amount of capital invested in the economy
  3. the amount of credit available in the economy
  4. the marginal cost of producing any additional goods and services within the territory
  5. the total amount of currency in circulation in the given economy
20. In the identity above, what’s I?
  1. the total income received for the production of commodities within a specific territory
  2. the value of goods and services imported into the territory
  3. total private investment within the economy
21. In the identity above, what’s X - M?
  1. One cannot say without more information.
  2. the amount by which the economy has grown since the preceding time period
  3. the balance of trade into and out of the territory
  4. the central government budget surplus or deficit
  5. the marginal cost of producing any additional goods and services within the territory
22. What are economies of scale?
  1. decreases in unit costs of production as a result of larger designed scale of output within the firm
  2. increases in demand as the price of production falls
  3. increases in the marginal cost of production
  4. the relationship between scale and transport costs
  5. decreases in unit costs of production as a result of proximity or density of economic activity
23. Which is the best definition of location rent?
  1. rent one pays for land or space in a building
  2. price premium that a parcel of land can command based solely on the desirability of its location
  3. price paid for a good or service minus the cost of producing the good or service
  4. price or rent charged for a certain location because of the value of the activity occurring there
  5. contract rent


Items 24 - 28 refer to the equation below.
 

LR = Q (p – c) – Qfk , where

LR = maximum rent that a particular agricultural use can pay at a particular point, in dollars/acre

Q = output (a measure of intensity of use), in tons/acre

p = market price (a measure of value of the crop), in dollars/ton

c = production cost, in dollars/ton

f = transport cost, in dollars/ton-mile

k = distance from the market center to the point in question, in miles.


24. What is (p-c) ?

  1. profit to be made per ton of output, before transport costs
  2. profit to be made per acre, before transport costs
  3. point at which one agricultural use becomes more profitable than another
  4. marginal cost of producing the particular agricultural product
  5. long-run diminishing returns to producing the particular agricultural product
25. What is Q(p-c) ?
  1. profit to be made per ton of output, before transport costs
  2. profit to be made per acre, before transport costs
  3. point at which one agricultural use becomes more profitable than another
  4. marginal cost of producing the particular agricultural product
  5. long-run diminishing returns to producing the particular agricultural product
26. What is Qfk ?
  1. a measure of land-use intensity
  2. cost to transport an acre’s production from the particular point to the market
  3. short-run transportation cost
  4. the furthest distance from the market at which it is economically viable to raise this farm product
  5. the location rent that the particular crop can pay for land at the market
27. Using this model, if we assume that a wheat farmer 30 miles from the market obtains a yield of 1,000 tons/acre, has production expenses of $50/ton, transport expenses of $1/ton-mile, and receives a market price of $100/ton at the central market, the location rent accruing to 1 acre of the farmer's land is:

a) $10,000

b) $20,000

c) $30,000

d) $60,000

e) $200,000

28. If everything above remains the same, except that production costs fall to $40/ton, what would the location rent be per acre?

a) $10,000

b) $15,000

c) $30,000

d) $60,000

e) $200,000

Items 29 - 32 refer to the equation below.
 

Ri = D (r – c) – Dtdic , where

Ri = rent or price of urban land at a particular point i, in dollars/acre, for a specific activity

D = land-use density, in rentable sq.ft./acre

r = revenues generated per sq.ft. of the activity

c = costs of generating that revenue, in dollars/sq.ft.

t = transport cost, in dollars/sq.ft. X mile

dic = distance from the point in question to the point of maximum accessibility, in miles.


29. What’s D(r-c) ?

  1. price at which all the land in the city will find a renter (or buyer)
  2. profit to be made per acre of land, before transport costs
  3. profit to be made per square foot of rented space, before transport costs
  4. the distance from the given land use to the point of maximum accessibility
  5. the slope of the location-rent curve for that particular land use
30. What’s a more understandable way of interpreting t ?
  1. the people (and/or goods) that must converge to create the land use, per square foot of the land use, multiplied by the average transport cost per person per mile (or per ton of goods per mile)
  2. the freight rate charged to move one square foot of cargo one mile
  3. the distance of the average commute (journey-to-work) in that urban area
  4. the distance from the given land use to the point of maximum accessibility
  5. the average rent per square foot within the urban area
31. What’s Dtdic?
  1. Density times distance
  2. the cost to transport the people or goods that have to get to and from an acre of this land use, each day
  3. the distance from the given land use to the point of maximum accessibility
  4. the freight rate charged to move one square foot of cargo one mile
  5. the slope of the location-rent curve for that particular land use
32. What happens if t falls?
  1. D increases.
  2. Each land use becomes denser.
  3. Land uses that cannot pay increased rents are no longer present.
  4. r-c falls.
  5. The boundaries of the urban area expand.
33. According to this framework, what’s the key difference among land parcels within an urban area, which allows us to determine which activities will be located on which parcels? (In other words, how do we distinguish locations within the urban area?)
  1. direction from the center of the city
  2. distance from the point of maximum accessibility
  3. land-use intensity
  4. land-use zoning
  5. cost of transportation
Items 34 - 36 refer to the figure to the right, below, which is a diagram of competing urban land uses A, B, and C.

34. What’s the highest rent per square foot per year, anywhere in the city?

a) LR1 d) LR5

b) LR2 e) LR6

c) LR3

35. What is the probable land use at D3?

  1. A b) B c) C
36. Where is the edge of the city?

a) A d) D9

b) D1 e) LR2

c) D8

37. What’s the most distant point at which land-use B is found?

a) D1 d) D5

b) D2 e) D6

c) D3

38. At what point will the rent level be LR3?

  1. between D1 and D2
  2. D1
  3. D2
  4. nowhere on this diagram; LR3 is always overshadowed by A
  5. nowhere on this diagram; LR3 is always overshadowed by LR2
39. These simple models of location rent assume that:
  1. economies of scale are outweighed by marginal costs.
  2. individual behavior is unpredictable.
  3. individuals can own land and will use, sell, or rent it for a use that brings the highest monetary return.
  4. the marginal cost of producing urban services is less than that of manufactured goods.
  5. urban land uses are the same as agricultural land uses.
40. These simple models of location rent assume that:



copyright James W. Harrington, Jr.
revised 26 April 2000