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Location Theory and Economic Geography

Description: Location Theory and Economic Geography Quiz
Number of Questions: 15
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Tags: economic geography location theory spatial economics
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Which theory explains the distribution of economic activities across space?

  1. Central Place Theory

  2. Von Thunen's Model

  3. Weber's Theory of Industrial Location

  4. All of the above


Correct Option: D
Explanation:

All of the mentioned theories contribute to explaining the distribution of economic activities across space.

According to Von Thunen's Model, which factor determines the location of agricultural activities?

  1. Transportation costs

  2. Land rent

  3. Labor costs

  4. Market demand


Correct Option: A
Explanation:

In Von Thunen's Model, transportation costs play a crucial role in determining the location of agricultural activities.

What is the main assumption of Weber's Theory of Industrial Location?

  1. Firms aim to minimize transportation costs

  2. Firms aim to maximize profits

  3. Firms are perfectly competitive

  4. All of the above


Correct Option: A
Explanation:

Weber's Theory of Industrial Location assumes that firms aim to minimize transportation costs when choosing their location.

Which concept refers to the clustering of similar industries in a particular location?

  1. Agglomeration Economies

  2. Localization Economies

  3. Urbanization Economies

  4. Diseconomies of Scale


Correct Option: A
Explanation:

Agglomeration Economies refer to the benefits that firms derive from being located in close proximity to other similar firms.

What is the term for the process of firms moving from higher-cost to lower-cost locations?

  1. Footloose Industries

  2. Spatial Arbitrage

  3. Industrial Relocation

  4. Decentralization


Correct Option: C
Explanation:

Industrial Relocation refers to the process of firms moving from higher-cost to lower-cost locations.

Which theory explains the formation of central places and their role in the distribution of economic activities?

  1. Central Place Theory

  2. Von Thunen's Model

  3. Weber's Theory of Industrial Location

  4. All of the above


Correct Option: A
Explanation:

Central Place Theory explains the formation of central places and their role in the distribution of economic activities.

What is the main determinant of the size of a central place according to Christaller's Central Place Theory?

  1. Transportation costs

  2. Market demand

  3. Distance to other central places

  4. All of the above


Correct Option: B
Explanation:

According to Christaller's Central Place Theory, market demand is the main determinant of the size of a central place.

Which concept refers to the benefits that firms derive from being located in close proximity to other dissimilar firms?

  1. Agglomeration Economies

  2. Localization Economies

  3. Urbanization Economies

  4. Diseconomies of Scale


Correct Option: C
Explanation:

Urbanization Economies refer to the benefits that firms derive from being located in close proximity to other dissimilar firms.

What is the term for the process of firms moving from lower-cost to higher-cost locations?

  1. Footloose Industries

  2. Spatial Arbitrage

  3. Industrial Relocation

  4. Decentralization


Correct Option: D
Explanation:

Decentralization refers to the process of firms moving from lower-cost to higher-cost locations.

Which theory explains the location of economic activities based on the concept of comparative advantage?

  1. Central Place Theory

  2. Von Thunen's Model

  3. Weber's Theory of Industrial Location

  4. Heckscher-Ohlin Theory


Correct Option: D
Explanation:

Heckscher-Ohlin Theory explains the location of economic activities based on the concept of comparative advantage.

What is the main assumption of the Heckscher-Ohlin Theory?

  1. Factors of production are mobile within countries but immobile between countries

  2. Factors of production are homogeneous

  3. Technology is the same across countries

  4. All of the above


Correct Option: A
Explanation:

The main assumption of the Heckscher-Ohlin Theory is that factors of production are mobile within countries but immobile between countries.

Which concept refers to the benefits that firms derive from being located in a large urban area?

  1. Agglomeration Economies

  2. Localization Economies

  3. Urbanization Economies

  4. Diseconomies of Scale


Correct Option: C
Explanation:

Urbanization Economies refer to the benefits that firms derive from being located in a large urban area.

What is the term for the process of firms moving from rural areas to urban areas?

  1. Urbanization

  2. Migration

  3. Decentralization

  4. Industrial Relocation


Correct Option: A
Explanation:

Urbanization refers to the process of firms moving from rural areas to urban areas.

Which theory explains the location of economic activities based on the concept of transaction costs?

  1. Central Place Theory

  2. Von Thunen's Model

  3. Weber's Theory of Industrial Location

  4. New Economic Geography


Correct Option: D
Explanation:

New Economic Geography explains the location of economic activities based on the concept of transaction costs.

What is the main assumption of the New Economic Geography?

  1. Transportation costs are negligible

  2. Firms are perfectly competitive

  3. Consumers are evenly distributed across space

  4. All of the above


Correct Option: A
Explanation:

The main assumption of the New Economic Geography is that transportation costs are negligible.

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