And heavy assembly lines which require single story

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Unformatted text preview: can cities is due to income segregation. E) Income segregation can worsen the inequality of opportunity between poor kids and rich kids. 11) Which of the following policies would NOT be expected to reduce suburban sprawl? A) Urban growth boundaries implemented by a regional planning authority. B) Higher gas taxes. C) Higher infrastructure charges for fringe development. D) Housing subsidies. E) Policies that increase the quality of life for downtown residents. 12) Glaeser claims that living in dense cities is environmentally friendly for all of the following reasons EXCEPT A) Skyscrapers provide habitat for birds. B) Urban residents have smaller carbon footprints than suburban residents. C) Urban residents use their cars less than suburban residents. D) Urban residents use less energy to heat their homes. E) High density land use preserves wildlife habitat. End Section 1. 4 Section 2: Short Answers 1) 6 points total Consider the following neighborhood sorting diagram: This is meant to illustrate the number of rich residents in neighborhood A. The city is assumed to have two identical neighborhoods of equal size (1000 housing units per neighborhood) and an equal number of rich and poor (1000 of each). The question is how those rich and poor sort across neighborhoods, and whether they integrate or segregate. a) 3 points In the diagram above, clearly label any stable equilibrium “s” and label any unstable equilibrium “u”. b) 3 points In the diagram below, the curves are reversed. Again, clearly label any stable equilibrium “s” and label any unstable equilibrium “u”. 5 2) 8 points total For this question, assume that workers’ only concern in choosing where to live is how far they are from the employment district. Workers are willing to pay more for housing in exchange for lower commuting costs. a) 4 points Using a correctly labeled bid- rent diagram, illustrate the effect of a per liter gas tax. Assume that the tax is lump- sum redistributed to all city residents (i.e., every resident receives a refund that is equal to total tax revenues divided by population). 6 7 b) 4 points Now draw a new bid- rent diagram, illustrating the effect of a per liter gas tax. Assume that the tax is not redistributed to city residents. Instead it is collected by the Federal government and used for general federal spending across Canada (so, for practical purposes, does not come back to the city where the tax is levied). End Section 3 End of Exam 8...
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