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Urban Economics and Public Policy

Description: This quiz covers the fundamental concepts and theories related to Urban Economics and Public Policy. It explores the economic and policy issues associated with urban areas, including land use, housing, transportation, and urban development.
Number of Questions: 15
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Tags: urban economics public policy land use housing transportation urban development
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Which of the following is NOT a characteristic of urban areas?

  1. High population density

  2. Heterogeneity of population

  3. High levels of economic activity

  4. Low levels of social interaction


Correct Option: D
Explanation:

Urban areas are characterized by high population density, heterogeneity of population, and high levels of economic activity. Low levels of social interaction are not a characteristic of urban areas.

The concept of agglomeration economies refers to:

  1. The benefits that firms derive from locating in close proximity to each other

  2. The costs that firms incur due to congestion and pollution in urban areas

  3. The negative externalities that firms impose on each other in urban areas

  4. The positive externalities that firms generate for each other in urban areas


Correct Option: A
Explanation:

Agglomeration economies refer to the benefits that firms derive from locating in close proximity to each other, such as access to a larger pool of labor, specialized inputs, and knowledge spillovers.

Which of the following is NOT a type of urban land use?

  1. Residential

  2. Commercial

  3. Industrial

  4. Agricultural


Correct Option: D
Explanation:

Agricultural land use is typically not found in urban areas, which are characterized by high population density and intensive land use.

The Tiebout hypothesis suggests that:

  1. Individuals sort themselves into communities based on their preferences for public goods and services

  2. Individuals are indifferent to the level of public goods and services provided by their community

  3. Individuals are willing to pay higher taxes in exchange for higher levels of public goods and services

  4. Individuals are willing to accept lower levels of public goods and services in exchange for lower taxes


Correct Option: A
Explanation:

The Tiebout hypothesis suggests that individuals sort themselves into communities based on their preferences for public goods and services, such that each community provides a bundle of public goods and services that is consistent with the preferences of its residents.

Which of the following is NOT a type of urban transportation?

  1. Public transportation

  2. Private transportation

  3. Walking

  4. Cycling


Correct Option: D
Explanation:

Cycling is not typically considered a type of urban transportation in the context of urban economics and public policy, as it is not a motorized form of transportation.

The Alonso-Muth model is a theoretical framework that explains:

  1. The spatial distribution of land use in urban areas

  2. The location of firms and households in urban areas

  3. The transportation choices of individuals in urban areas

  4. The housing market in urban areas


Correct Option: A
Explanation:

The Alonso-Muth model is a theoretical framework that explains the spatial distribution of land use in urban areas, based on the assumption that individuals and firms choose their locations to minimize their transportation costs.

Which of the following is NOT a type of urban development policy?

  1. Zoning

  2. Land use planning

  3. Transportation planning

  4. Rent control


Correct Option: D
Explanation:

Rent control is not typically considered a type of urban development policy, as it is a policy that directly intervenes in the housing market rather than addressing the underlying economic and social factors that shape urban development.

The median voter theorem suggests that:

  1. In a democracy, the outcome of an election will reflect the preferences of the median voter

  2. In a democracy, the outcome of an election will reflect the preferences of the majority of voters

  3. In a democracy, the outcome of an election will reflect the preferences of the wealthiest voters

  4. In a democracy, the outcome of an election will reflect the preferences of the most powerful voters


Correct Option: A
Explanation:

The median voter theorem suggests that in a democracy, the outcome of an election will reflect the preferences of the median voter, who is the voter whose preferences are in the middle of the distribution of preferences among all voters.

Which of the following is NOT a type of urban environmental problem?

  1. Air pollution

  2. Water pollution

  3. Noise pollution

  4. Traffic congestion


Correct Option: D
Explanation:

Traffic congestion is not typically considered a type of urban environmental problem, as it is a problem related to transportation rather than environmental degradation.

The fiscalization of land use refers to:

  1. The use of land use regulations to generate revenue for local governments

  2. The use of land use regulations to promote economic development

  3. The use of land use regulations to protect the environment

  4. The use of land use regulations to promote social equity


Correct Option: A
Explanation:

The fiscalization of land use refers to the use of land use regulations to generate revenue for local governments, such as through zoning fees, impact fees, and property taxes.

Which of the following is NOT a type of urban housing policy?

  1. Public housing

  2. Rent control

  3. Zoning

  4. Mortgage subsidies


Correct Option: C
Explanation:

Zoning is not typically considered a type of urban housing policy, as it is a land use policy that regulates the use of land rather than directly addressing the housing market.

The spatial mismatch hypothesis suggests that:

  1. There is a mismatch between the location of jobs and the location of affordable housing in urban areas

  2. There is a mismatch between the skills of workers and the skills demanded by employers in urban areas

  3. There is a mismatch between the transportation options available to workers and the location of jobs in urban areas

  4. There is a mismatch between the preferences of workers and the types of jobs available in urban areas


Correct Option: A
Explanation:

The spatial mismatch hypothesis suggests that there is a mismatch between the location of jobs and the location of affordable housing in urban areas, which can make it difficult for low-income workers to access employment opportunities.

Which of the following is NOT a type of urban economic development policy?

  1. Business incubators

  2. Tax incentives

  3. Infrastructure investment

  4. Zoning


Correct Option: D
Explanation:

Zoning is not typically considered a type of urban economic development policy, as it is a land use policy that regulates the use of land rather than directly addressing economic development.

The NIMBY (Not In My Backyard) syndrome refers to:

  1. The opposition of residents to the development of new housing or other land uses in their neighborhood

  2. The support of residents for the development of new housing or other land uses in their neighborhood

  3. The indifference of residents to the development of new housing or other land uses in their neighborhood

  4. The willingness of residents to pay higher taxes to support the development of new housing or other land uses in their neighborhood


Correct Option: A
Explanation:

The NIMBY (Not In My Backyard) syndrome refers to the opposition of residents to the development of new housing or other land uses in their neighborhood, often due to concerns about negative externalities such as traffic congestion, noise pollution, or decreased property values.

Which of the following is NOT a type of urban social policy?

  1. Education

  2. Healthcare

  3. Public safety

  4. Zoning


Correct Option: D
Explanation:

Zoning is not typically considered a type of urban social policy, as it is a land use policy that regulates the use of land rather than directly addressing social issues.

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