Economics 366 - Midterm #1 Study Guide

Economics 366 - Midterm #1 Study Guide - CHAPTER 1...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 1 : Population density (4) - Definition : defined as total population divided by land area. - Example : in 1990, USA’s population density was 70 people per square mile. - Notes: Urban place (5) - Definition : any concentration of at least 2,500 people. An urban place is usually defined by political boundaries. This term does not correspond to economist’s notation of an urban area. - Example : Any big city. - Notes: Urban area (6) - Definition : refers generically to places of high population density; consists of one central city (or sometimes two) of at least 50,000 residents and the surrounding closely settled area. Thus, it is the physical city, definition without regard for political boundaries. An urban area is a place in which economic activity is highly concentrated. Both population and employment density are much higher than in surrounding areas. - Example : Mexico City, Jakarta, and so forth. - Notes: Metropolitan Statistical Area (MSA) - Definition : normally consists of a central city (sometimes two or three) with at least 50,000 people, plus any contiguous counties that are metropolitan in character. MSAs do not include parts of counties. - Example: - Notes: 1) Much more data is available for MSAs than for urbanized areas. Primary Metropolitan Statistical Area (PMSA) - Definition: an individual MSA. - Example: - Notes: Consolidated Metropolitan Statistical Area (CMSA) - Definition: a set of contiguous PMSAs. - Example: - Notes: Megalopolis Scale economies = indivisibilities - Definition : situation where increasing inputs by the same proportion (say double) would increase the output by a larger proportion (say triple or quadruple). - Example: - Basic trend(s):
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
- Connection to urbanization : If scale economies were absent there would be no economies from concentrating production at a particular location. All production would then be done in small units distributed over different places. However, scale economies mean that products can be produced cheaper if they are concentrated in particular units/locations. This provides the motivation for the creation of urban areas as capital and labor is concentrated in these locations. Workers and businessmen benefit by locating as close as possible to these units and population density rises as a result. Diseconomies of scale (9) - Definition : exists if the long-run average cost is rising. - Example: - Basic trend(s): - Connection to urbanization: Scope economies Central place theory (11, 18) - Definition: - Example: - Connection to urbanization: Market area Spatial competition (12) Scale relative to market demand (14) Basic employment = export base employment (16) - Definition : employment in the export sectors of a city’s sectors with scale economies. Nonbasic employment - Definition : the remainder of employment (which satisfies local demand). Import substitution (16, 24) - Definition : process by which a region begins to build particular products/services on their own instead of importing them from abroad.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern