Domande d'esame di Regional economics

FIRST PART

1. What is the shape of the williamson curve, linking per-capita income and regional dispari�es?

a. Inverted U shape

b. a linear shape

c. a U shape

d. non of above

2. The residen�al loca�on model takes into considera�on:

a. The distance from city centre and the quan�ty of the goods

b. Distance, quan�ty, size

c. Distance, size

d. Non of the above

3. A general spa�al loca�on equilibrium model iden�fies a loca�on equilibrium point for all

firms and individuals

a. True

b. False

4. Losch cri�ses christallers’ model on

a. The concept of threshold

b. The concept of range

c. The factor of propor�onality constant along the urban hierarchy

d. The assump�on of different thresholds and ranges for each service

5. What does the spa�al demand curve present?

a. Different quan��es of good x that individuals are willing to buy from a firm i,

according to their distance from the firm and according to the produc�on price

b. Different quan��es of good x that individuals are willing to buy

c. Different quan��es of good x that firms are willing to produce

d. None of the above

6. The hotelling model iden�fies:

a. A loca�on equilibrium point obtained under the assump�on that suppliers cannot

relocate

b. A loca�on equilibrium point obtained under the assump�on that consumers cannot

relocate

c. A loca�on equilibrium point obtained under the assump�on that suppliers can

relocate

d. Non of the above

7. Why is differen�al rent not enough to interpret land rent?

a. It takes only accessibility to city centre into account

b. It iden�fies the same rent value to the agricultural land and tot he land at the edge

of the city

c. It assumes a constant unit transporta�on

d. None of the above is correct

8. What is the major strength of weber’s model?

a. The iden�fica�on of the loca�on point based on both transporta�on costs and

agglomera�on economies

b. The iden�fica�on of the loca�on point based on transporta�on costs

c. The iden�fica�on of the loca�on point based on agglomera�on economies

d. Non of the above

9. 2 points along the same bid rent curve represent the willingness to pay for 2 distances from

the city centre. The closest tot he city centre is the one preferred by the individual or the

firm

a. True

b. False

10. Weber’s model is a dynamic model?

a. True

b. False

11. In the Von Thunen’s model, within an area iden�fied for a certain category of farmers,

farmers compete to be located closer to the city centre

a. True

b. False

12. Christaller’s model has the aim to

a. Explain the existence of a city

b. Explain the existence of ci�es of the same size

c. Explain the existence of small ci�es

d. Expalin the existence of an urban hierarchy

13. Among the following ones, which is a strength of the Christaller’s model?

a. It takes similar city sizes into account

b. It is able to explain the presence of high value func�ons in small ci�es

c. It assumes the existence of a city centre

d. It explains the urban hierarchy

14. Alonso’s model of produc�ve ac�vity is able to

a. Iden�fy the op�mal loca�on for individuals, given a certain distance from the city

centre

b. Iden�fy the op�mal loca�on for firms, given a certain effec�ve rent

c. Iden�fy the op�mal loca�ons for firms, given a certain distance from the periphery

d. None of the above

15. A market area is

a. An area where consumers are obliged to buy their goods

b. An area where producers sell their goods under monopolis�c condi�ons

c. An area where goods are sold

d. Non of the above

16. In Von Thunen’s model, what determines land rent?

a. The different fer�lity of lands

b. The different demand for land

c. Land availability

d. Land accessibility to the city centre

17. Why is the indifference loca�on point the one where the bid rent curve is tangent to the

effec�ve rent curve?

a. Because it is the point that guarantees the maximalisa�on of the distance to the city

centre

b. Because it is the point that guarantees the maximialisa�on of u�lity( or profit) given

a certain land price

c. Because it is an irra�onal point

d. Non of the above

18. What does the effec�ve rent curve represent?

a. The willingness to pay for a unit of land for different distances to the city centre

b. The real price at which an urban land is offered on the real estate market at different

distances to the city centre

c. The willingnesst to pay for a unit of land

d. The real price at which a firm is ready to rent a unit of land

19. Differen�al rent is enough to interpret land rent values

a. True

b. False

20. Among the following ones, which is a limit of the christaller’s model?

a. It takes different city sizes into account

b. It is unable to explain the presence of high value func�ons in small ci�es

c. It assumes the existence of a city centre

d. None of the above is correct

21. What is the growth mechanism behind the stages of development theory?

a. The presence of different stages

b. The presence of a few stages

c. Increases in produc�vity moving from one stage to the other

d. The lack of stages

22. In the produc�on loca�on model of Alonso, the loca�on equilibrium is represented by:

a. A situa�on in which the bid rent curve crosses the effec�ve rent curve

b. A situa�on in which the bid rent curve touches in only one point the effec�ve rent

curve

c. A situa�on in which the bid rent curve does not cross the effec�ve rent curve

d. A situa�on in which the bid rent curve crosses twice the effec�ve rent curve

23. Which is the main lever of growth in the stage of development theories?

a. The specalisa�on of the area in the industry sector

b. The increase in produc�vity by moving from one sector to another

c. The accessibility to the area

d. None

24. How would you define urbanisa�on economies?

a. Advantages stemming from the size of the city

b. Advantages stemming from limited func�onal specializa�on of a city

c. Advantages stemming from the size of a plant

d. Advantages stemming from the size of the industry in an area

25. Under which respect produc�ve and residen�al loca�on choice models differ?

a. Firms prefer a central loca�on, individuals a peripheral loca�on

b. Firms prefer a peripheral loca�on, individuals a central loca�on

c. Firms maximise profit, individuals maximise u�lity

d. None of the above

26. Absolute rent differs according to the posi�on of the land with respect to the centre

a. True

b. False

27. In the Alonso model of produc�ve loca�on, the situa�on of indifferent loca�on is obtained

when;

a. The increase in rent is compensated by the decrease in produc�ve ac�vi�es

b. The increase in rent is perfectly compensated by the decrease in transporta�on costs

c. The increase in rent is par�ally compensated by the decrease in transporta�on costs

d. None of the previous ones

28. What is an indifference loca�on point?

a. A point where firms have advantage in reloca�ng

b. A point where firms do not have any advantage to relocate

c. A point where firms have advantage in moving towards the centre

d. A point where firms have advantage in reloca�ng towards the periphery

29. How would you define localisa�on economies?

a. Advantages stemming from the size of the city

b. Advantages stemming from limited func�onal specializa�on of a city

c. Advantages stemming from the size of a plant

d. Advantages stemming from the size of the industry in an area

30. In regional economics, opportunity cost is meant to be:

a. The costs of moving goods

b. The �me necessary to move one unit in space and that could otherwise be used to

do something else

c. The �me spent for leisure ac�vi�es

d. None of the above

31. What does the bid rent curve represent?

a. The willingness to pay for a unit of land for different distances from the city

centre

b. The willingness to pay for a unit of land for specific distances from the city centre

c. The willingness of different firms to pay for a unit of land

d. The willingness to pay for a unit land

32. Christaller’s model aims to:

a. Explain the existence of a city

b. Explain the existence of ci�es of the same size

c. Explain the existence of small ci�es

d. Explain the existence of an urban hierarchy

33. A produc�on area is an area where:

a. Each producer is forced to sell his/her goods

b. Each producer is competes to sell his/her goods

c. Each producer is produces to sell his/her goods

d. Each producer sells his/her goods in a perfect compe��on market

34. A market area is an area where:

a. Each producer is forced to sell his/her goods

b. Each producer competes to sell his/her goods

c. Each producer produces his/her good in a monopolis�c posi�on

d. Each producer sells his/her goods in a perfect condi�on market

35. In the produc�on loca�on model of Alonso, an irra�onal loca�on choice is represented

by:

a. A situa�on in which the bid rent curve crosses the effec�ve rent curve

b. A situa�on in which the bid rent curve touches in only one point the effec�ve

rent curve

c. A situa�on in which the bid rent curve does not cross the effec�ve rent curve

d. A situa�on in which the bid rent curve crosses twice the effec�ve rent curve

36. Christaller’s model allows the existence of different func�onal specialisa�on for ci�es of

the same size

a. True

b. False

37. One of the conclusions achieved by the christaller’s model is:

a. The existence of an urban func�onal specializa�on for one city

b. The existence of an urban func�onal specializa�on for ci�es of the same size

c. The existence of an urban func�onal diversifica�on for ci�es of the same size

d. The existence of an urban func�onal diversifica�on for one city

38. Two points along the same bid rent curve represent the willingness to pay for two

distances from the city centre. The closest to the city centre is the one preferred by the

individual or the firm

a. True

b. False

39. In the christaller’s model, the range represents:

a. The minimum distance at which the consumer is willing to move in space to

purchase service

b. The maximum distance at which the consumer is willing to move in space to

purchase service

c. The minimum distance that, once rotated, guarantees an area in which a

sufficient popula�on is located to offer the service under profitability principles

d. Non of the above

40. In the market area:

a. The demand is point-like, the supply occupies a space

b. The supply is point-like, the demand occupies a space

c. Both demand and supply occupy space

d. None of the previous ones

41. Weber’s model iden�fies an equilibrium point taking into account

a. Agglomera�on economies and transporta�on costs

b. Agglomera�on economies

c. Transporta�on cost

d. None of them

42.Who wins in the compe��on among firms to be located closer to the city centre?

a. The largest firms

b. The firms that are more prone to a central loca�on

c. Firms that are willing to pay the highest rent

d. Firms whose revenues highly depend on central loca�ons

43. If an individual increases his/her income, his loca�on choice changes

a. Towards the centre

b. Towards the periphery

c. It depends

d. It remains where it is

44. Von Thunen’s model is a par�al equilibrium model

a. True

b. False

45. A par�al spa�al equilibrium model is an equilibrium point defined for the collec�vity

a. TRUE

b. FALSE

46. In the produc�on loca�on model of Alonso, an impossible choice is represented by:

a. A situa�on in which the bid rent curve crosses the effec�ve rent curve

b. A situa�on in which the bid rent curve touches in only one point the effec�ve

rent curve

c. A situa�on in which the bid rent curve does not cross the effec�ve rent curve

d. A situa�on in which the bid rent curve crosses twice the effec�ve rent curve

47. The bid rent curve is an indifference curve in space

a. True