AP Services, Central Place Theory & the Informal Economy 3

Question 1

The multiplier effect in economic geography refers to:

Accepted Answer

How new basic-industry jobs generate additional non-basic service jobs through spending

Answer

The decline in output that occurs when too many firms compete in one market

Answer

The duplication of services that emerges when cities of equal size compete

Answer

The replication of successful agricultural techniques across neighboring regions

Question 2

Which of the following is the best example of a high-order good in central place theory?

Accepted Answer

Specialized cardiac surgery at a regional medical center

Answer

Gasoline at a convenience store

Answer

Standard grocery items at a supermarket

Answer

Daily newspapers at a local newsstand

Question 3

The growth of business process outsourcing (BPO) industries in India and the Philippines is primarily attributable to:

Accepted Answer

Their large English-speaking, educated workforces available at lower wages

Answer

Their geographic proximity to the largest European consumer markets

Answer

Their highly developed physical manufacturing infrastructure

Answer

Their abundance of raw natural resources that reduce operating costs

Question 4

Footloose industries are characterized by their:

Accepted Answer

Ability to locate almost anywhere due to minimal transportation and resource constraints

Answer

Strict dependence on specific natural resource extraction locations

Answer

Requirement to be located near navigable rivers or large water bodies

Answer

Need to be positioned directly adjacent to major seaports or airports

Question 5

Deglomeration of industries refers to:

Accepted Answer

The movement of industries away from congested or expensive urban cores

Answer

The clustering of similar industries in a single advantageous location

Answer

The merger of multiple competing industries into single large corporations

Answer

The decline of traditional manufacturing sectors due to automation

Question 6

Agglomeration economies best describes:

Accepted Answer

The cost savings and competitive benefits firms gain from clustering near related businesses

Answer

The decline in productivity that occurs when too many competing firms locate together

Answer

The economic advantages that large rural areas have over small urban centers

Answer

The practice of governments financially subsidizing specific domestic industries

Question 7

The concept of 'just-in-time' (JIT) manufacturing most directly relates to which geographic consideration?

Accepted Answer

Minimizing transportation distances and maximizing supply chain spatial efficiency

Answer

Locating all factories as close as possible to raw material extraction sites

Answer

Concentrating all production in the single country with the lowest labor costs

Answer

Centralizing manufacturing in one massive facility to gain economies of scale