Econ 312 Midterm Examination VERSION 1-2 Urban Land Economics
Economics 312 Urban Land Economics
Midterm Exam #1
Section you: Multiple Choice (3 items each)
Pick the most appropriate solution
Questions 1-3 reference the diagram under:
1) The effect of a (ceteris paribus) decrease in the cost of home production is to
Increase the marketplace area of the stock.
Cure the market area of the factory.
Increase travel costs.
2) An increase in transport costs that has simply no effect on creation costs (home or factory) will Cure the number of people who also purchase from the factory. Increase the number of people who take part in home creation. Decrease the number of people who participate in home production.
3)A decrease in manufacturer production costs (ceteris paribus) will Cure the number of people whom purchase from our factory. Increase the number of people who invest in the factory. Decrease the number of people who also engage in home production.
4) House of the Canadian Pacific Railroad (which connected Toronto to the West) might have Increased industry area of Toronto
Allowed Toronto manufacturers to take advantage of interior economies of scale in production. Written for agglomeration externalities in Barcelone.
5) According to Jared Diamond's " Weapons, Germs, and Steel” speculation, which with the following contributed to the dominant world placement of Euro civilization by mid-1800s? The availability of many outrageous plants and animals in the Fertile New-moon that could be fairly easily trained in prehistoric times. A powerful work ethic among Europeans that wasn't within non-European societies. Significant geographic barriers in Europe that led to progress separate societies that taken part militarily. IV. Early estate, which triggered development of defenses against
diseases that spread rapidly through dense foule.
6) Conjunction externalities can easily arise due to
time pool posting.
latest deals by consumers.
all of the over.
7) A piece of area that rent for $12, 000 12 months should sell for ________ in case the interest rate is definitely 5% and folks expect the eye rate and rent to settle constant permanently. $10, 1000
$1, 000, 000
8) Assume that potential property users are equally in a position (profitable) in their line of business, and this rental legal agreements are continually renegotiated (i. e., you will discover no long-term contracts). The Leftover Basic principle says that In sense of balance, all non-land profits of any business see a landlord. Any policy change that leads for an increase in non-land profits of a land end user will profit only the landlord, not the land user. Any plan change leading to a decline in non-land profits of a terrain user is going to hurt only the landlord, not the property user.
9) In respect to Ed Glaeser in Triumph of the City, urban centers can catch the attention of talent by simply Implementing reasonable pro-business plans
Providing good colleges that appeal to smart people.
Supplying good quality of life.
10) Relating to Impotence Glaeser in Triumph of the City cities in decline (like Detroit) can benefit from Publicly funding trophy building tasks (like convention centers and stadiums). Looking to promote the industries that historically manufactured them great (like the vehicle industry, in Detroit). Stimulating industrial variation.
End Section 1 )
Section 2: Short Answers
1) 12-15 points
Think about a region having a population that is divided around two urban centers. The concerns below request you about different likely configurations with this region. Electricity per member of staff curves get for each city in the layouts below. Recollect that electricity per member of staff is increasing in salary and lowering in blockage and local rental costs. Consider the following 3 cases: a) 5...