RM 303 Exam 2 Google Docs Questions and
Verified Answers
Economic Base Correct Answer: the set of economic activities that a city provides for the world beyond
its boundaries
Economic Base Multiplier Correct Answer: the multiplication of money that grows as a city grows.
Leakage Correct Answer: the outsourcing of cash flow that drafts to another region. An example is
American money "leaks" to China due to its cheap manufacturing
Local economic activities Correct Answer: activities in a city that serve the local business and households
are re-circulating the income derived through base activities.
Changes in basic activities VS changes in secondary activities Correct Answer: Growth of basic
activities→ ????
Growth of secondary activities has ____ spillover effect on growth of the cit
Location quotient Correct Answer: the division of a certain amount of population employed within a
geographic region compared to the population employed throughout the country
Industry economies of scale Correct Answer: an emerging industry attracts similar and related businesses
to the same geographic region. An example is an aircraft manufacturing company will attract part-
markers to the same region. Example: Silicon Valley
Agglomeration economies Correct Answer: the emergence of specialized resources in response to
demand from multiple industries. An example is the building of airports in New York to satisfy its huge
financial field. Example: Hollywood
Supply side of urban growth: What can a city offer to the world? Correct Answer: ?
Labor Force Characteristics Correct Answer: existing labor force. Available labor force is important.
Quality of Life and Leadership Correct Answer: community should be able to provide employees and
enriching and satisfying lifestyle. "Cost of business" depends on the business leadership and
environment: Roads, utilities, effective airport service, reasonable taxation..etc.
Bid-Rent Curve Correct Answer: the cost of land becomes more expensive if it offers greater saving on
money/time. Areas closer to employment will generally be more expensive than areas further away.
Verified Answers
Economic Base Correct Answer: the set of economic activities that a city provides for the world beyond
its boundaries
Economic Base Multiplier Correct Answer: the multiplication of money that grows as a city grows.
Leakage Correct Answer: the outsourcing of cash flow that drafts to another region. An example is
American money "leaks" to China due to its cheap manufacturing
Local economic activities Correct Answer: activities in a city that serve the local business and households
are re-circulating the income derived through base activities.
Changes in basic activities VS changes in secondary activities Correct Answer: Growth of basic
activities→ ????
Growth of secondary activities has ____ spillover effect on growth of the cit
Location quotient Correct Answer: the division of a certain amount of population employed within a
geographic region compared to the population employed throughout the country
Industry economies of scale Correct Answer: an emerging industry attracts similar and related businesses
to the same geographic region. An example is an aircraft manufacturing company will attract part-
markers to the same region. Example: Silicon Valley
Agglomeration economies Correct Answer: the emergence of specialized resources in response to
demand from multiple industries. An example is the building of airports in New York to satisfy its huge
financial field. Example: Hollywood
Supply side of urban growth: What can a city offer to the world? Correct Answer: ?
Labor Force Characteristics Correct Answer: existing labor force. Available labor force is important.
Quality of Life and Leadership Correct Answer: community should be able to provide employees and
enriching and satisfying lifestyle. "Cost of business" depends on the business leadership and
environment: Roads, utilities, effective airport service, reasonable taxation..etc.
Bid-Rent Curve Correct Answer: the cost of land becomes more expensive if it offers greater saving on
money/time. Areas closer to employment will generally be more expensive than areas further away.
