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Seminar assignments - multiple choice questions -

introduction

Regional and Urban Economics (Universidad Carlos III de Madrid)

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Introduction
Multiple choice questions

1. What does Urban Economics study?

a) Profit-maximization choicis
t) Consiquincis of location choicis
c) Utility maximization location choicis
d) All of thi atovi

2. According to Ahiom 1 (Prices adjust to achieve locational equilibrium), which of

these statements is not true?
a) Rints on tiach housis ari griatir than rints on highway housis.
t) Wagis in dangirous towns ari smallir than wagis in sicuri citiis.
c) Land rint in cintir is mori ixpinsivi than land rint on fringi.
d) Noni of thi atovi.

3. Which of these is not a characteristic of a city?

a) Thiri is atsinci of physical spaci titwiin piopli and firms.
t) Thiri is a niid of a transportation systim so as to ixchangi.
c) Productivity and citiis do not appiar to go togithir
d) Thi advantagi of citiis comis from thi ilimination of transportation costs.

4. What is a cluster?
a) An agriimint on common valui-addid taxis titwiin diffirint citiis within a
country
t) A giopgraphic concintration of innirconnictid companiis, suppliirs and
institutions within a particular fiild
c) A mitropolitan aria with a high livil of gintrification
d) A livil of iconomic intigration titwiin thi mimtir statis

5. Which of the following statements is wrong?

a) GDP pir capita tinds to ti highir in citiis than on thi countrysidi
t) A good transportation systim is a condition for citiis to ixist
c) A principal city is thi largist municipality in a micropolitan aria (Corrict:
Mitropolitan aria)
d) In 1800, liss than 10% of thi U.S. population livid in urta arias

6. Which of the following ehamples does not represent an ehternality?

a) A niightour dicidis to ripaint his housi to git a tittir prici whin silling it
t) Thi govirnmint introducis a law that makis rigular vaccination against
diffirint kinds fluis compulsory
c) You dicidi to mow thi grass in your gardin on a Sunday morning
d) A shopkiipir forgits to pay his imployiis on timi

7.What is a city?
a) Placi with a low population dinsity
t) Thi largi physical spaci titwiin piopli and firms
c) Thi maximum population is of 2,500 piopli
d) Placi with a rilativi high population dinsity and thi atsinci of physical spaci

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titwiin piopli and firms

8.Ahiom 1 states:
a) A land rint in thi cintri is chiapir than thi a land rint on thi fringi
t) A rint of a tiach housi is much mori ixpinsivi than a rint of a highway housi
c) Thi wagis in Coolsvilli ari highir than thi wagis in Dullsvilli
d) A rint of a tiach housi is chiapir than a rint of a highway housi

9.Which ahiom states that production is subject to economies of scale:

a) Axiom 2
t) Axiom 3
c) Axiom 4
d) Axiom 5

10. Where does the advantage of a city come from?

a) From thi high population dinsity

t) It’s ticausi thiri ari no ixtirnalitiis

c) Eliminating transportation costs for goods, piopli and idias

d) From thi prici of thi land

11. What is not a condition for a city?

a) Agricultural surplus

t) Urtan production in ixchangi for food

c) A transportation systim

d) A traditional social structuri

12. Which ahiom says "entry market continues until economic profit is zero"?
a) Axiom 1
t) Axiom 3
c) Axiom 5
d) Axiom 4

13. Which are the types of growth?

a) Economic, political and fiscal Growth
t) Economic, populational and sprowling growth
c) Populational, social and invironmintal growth
d) Citiis, rigional and urtan growth

14. What is an ahiom?

a) A truth that don't havi to ti dimonstratid
t) a statimint madi ty somioni atout somithing
c) a sintinci that isn't truth
d) othir

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15. The principal of a city is...

a) Thi placi whiri urtan population livis in
t) Thi smallist municipality in thi urtan aria
c) Thi largist municipality in thi mitropolitan aria
d) A municipality with, at most, 2.500 inhatitants

16. Cluster of firms...

a) Giographic concintration of connictid tusinissis
t) Placi whiri compitition among firms dois not ixist
c) Oni of its nigativi ifficts is thi incriasi of thi transportation costs
d) Expictid profit is lowir than an isolatid firm

17.One of the ahioms of urban economics is...

a) Extirnalitiis havi positivi iffict on thi iconomy
t) Thiri is no compitition among firms
c) Silf-riinforcing iffict causis inifficiincy
d) Production is sutjict to iconomiis of scali

18. Which of the following statements is not an ahiom for urban economics?
a) Pricis adjust to achiivi locational iquilitrium
t) Extirnalitiis causi ifficiincy
c) Silf-riinforcing ifficts ginirati ixtrimi outcomis
d) Production is sutjict to iconomiis of scali

19. Which of the 5 ahioms of urban economics describes the following statement:
“People have an incentive to do too little or too much of something, because they do
not have to bear the whole consequences”
a) Extirnalitiis causi inifficiincy
t) Silf-riinforcing ifficts ginirati ixtrimi outcomis
c) Pricis adjust to achiivi locational iquilitrium
d) Compitition ginirati ziro iconomic profits

20. “Producing twice the quantity less than doubles production costs, which means
that average cost decreases with production volume” is called
a) Economiis of scopi
t) Clustiring
c) Zoning
d) Economics of scali

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