USP 15 Final Study Guide questions
well answered graded A+
Four types of agglomeration economies - correct answer ✔✔1. Input sharing
2. Labor pooling
3. Skills matching
4. Knowledge spillover
With the process of "majority rules" the median preference will typically win out. - correct
answer ✔✔True
What does the concept "Vote with your feet" refer to? - correct answer ✔✔Residents can
literally move to different locations if they are not satisfied with the bundle of goods/services
associated with their location choice.
When and where was the first zoning plan established in the U.S.A? - correct answer ✔✔New
York City, 1916
What are some examples of development limits imposed by cities? - correct answer
✔✔Imposing taxes on new housing
Restricting the number of building permits
Confining development to specific geographic areas.
What variable best influences land and price? - correct answer ✔✔How much profit you can
make off that piece of land.
How is a gas tax inefficient: - correct answer ✔✔Doesn't affect time of travel.
, Doesn't affect route of travel.
How is a gas tax efficient: - correct answer ✔✔it would decrease driving and encourage people
to travel by other modes such as walking, biking, public transit.
Why does subsidizing public transportation not increase ridership? - correct answer ✔✔It
doesn't address the inconvenience of taking public transportation such as sitting next to
strangers, the time the bus leaves, the time it takes to get to your destination, the bus going a
certain speed and certain temperature in the bus.
Congestion tax decreases traffic volume by - correct answer ✔✔1. modal substitution (changing
mode of transportation used instead of driving)
2. time of travel
3. route of travel
4. location choice.
Biggest factor for gas tax, congestion tax, etc. - correct answer ✔✔These taxes are only
beneficial if the tax money is actually used to help better mitigate the issues such as reducing air
pollution etc, and to reduce the externalities.
Congestion tax - correct answer ✔✔If people are traveling too much because they are paying
too little for the trip, the simple solution is to charge them something closer to the full cost of
the trip- congestion tax.
Benefits & costs of congestion tax - correct answer ✔✔Some drivers will pay the tax and enjoy a
fast drive due to other people not willing to pay the tax.
3 car externalities and why they are externalities - correct answer ✔✔congestion, air pollution,
and vehicle collisions. They are externalities because nobody pays for them yet they impose a
cost on everyone.
well answered graded A+
Four types of agglomeration economies - correct answer ✔✔1. Input sharing
2. Labor pooling
3. Skills matching
4. Knowledge spillover
With the process of "majority rules" the median preference will typically win out. - correct
answer ✔✔True
What does the concept "Vote with your feet" refer to? - correct answer ✔✔Residents can
literally move to different locations if they are not satisfied with the bundle of goods/services
associated with their location choice.
When and where was the first zoning plan established in the U.S.A? - correct answer ✔✔New
York City, 1916
What are some examples of development limits imposed by cities? - correct answer
✔✔Imposing taxes on new housing
Restricting the number of building permits
Confining development to specific geographic areas.
What variable best influences land and price? - correct answer ✔✔How much profit you can
make off that piece of land.
How is a gas tax inefficient: - correct answer ✔✔Doesn't affect time of travel.
, Doesn't affect route of travel.
How is a gas tax efficient: - correct answer ✔✔it would decrease driving and encourage people
to travel by other modes such as walking, biking, public transit.
Why does subsidizing public transportation not increase ridership? - correct answer ✔✔It
doesn't address the inconvenience of taking public transportation such as sitting next to
strangers, the time the bus leaves, the time it takes to get to your destination, the bus going a
certain speed and certain temperature in the bus.
Congestion tax decreases traffic volume by - correct answer ✔✔1. modal substitution (changing
mode of transportation used instead of driving)
2. time of travel
3. route of travel
4. location choice.
Biggest factor for gas tax, congestion tax, etc. - correct answer ✔✔These taxes are only
beneficial if the tax money is actually used to help better mitigate the issues such as reducing air
pollution etc, and to reduce the externalities.
Congestion tax - correct answer ✔✔If people are traveling too much because they are paying
too little for the trip, the simple solution is to charge them something closer to the full cost of
the trip- congestion tax.
Benefits & costs of congestion tax - correct answer ✔✔Some drivers will pay the tax and enjoy a
fast drive due to other people not willing to pay the tax.
3 car externalities and why they are externalities - correct answer ✔✔congestion, air pollution,
and vehicle collisions. They are externalities because nobody pays for them yet they impose a
cost on everyone.
