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 multiplier effect describes how new jobs in basic (export) industries generate additional jobs in non-basic (local service) industries as workers spend their wages, multiplying the total economic impact.

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

High-order goods like specialized medical procedures have large thresholds and long ranges, meaning they are only found in major centers and people travel significant distances to obtain them.

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

India and the Philippines attracted BPO industries because they offer large pools of English-proficient, educated workers at wages significantly lower than in North America or Western Europe.

Question 4

Footloose industries are characterized by their:

Accepted Answer

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

Answer

Footloose industries are not tied to specific resource locations or markets and can locate almost anywhere, making them highly flexible—software development and financial services are prime examples.

Question 5

Deglomeration of industries refers to:

Accepted Answer

The movement of industries away from congested or expensive urban cores

Answer

Deglomeration occurs when businesses relocate away from congested, expensive urban clusters to reduce costs—the reverse process of agglomeration.

AP Practice Test

AP Practice Test

AP Services, Central Place Theory & the Informal Economy 3