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Flashcards in BUSI 300 Lesson 6 Deck (13)
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1

Summarize the "natural evolution" and "fiscal-social problem" explanations for the suburbanization of population. Are these arguments consistent with the differences between Canadian and American cities shown in Table 7.4 (in the text)? Explain

According to the natural evolution explanation, suburbanization was largely the result of rising incomes
(which increased the demand for new housing, most of which is built on vacant land near the edge of the city) and falling transportation costs (which central city jobs accessible from suburban locations). This view is entirely consistent with the predictions of the monocentric model. According to the fiscal social problem view, population suburbanization was encouraged by high taxes, poor schools, racial prejudice, crime, pollution and congestion in inner cities. Both arguments are at least partly consistent with the observation that Canadian cities seem more compact than their American counterparts — there are more urban expressways in American cities, and many central city problems are more acute there.

2

What does it mean for a city to be "too decentralized," and what are the main economic forces that could lead to this outcome?

It means that the land use pattern that the market generates is inefficient in the sense that it features too much decentralization. We have identified three economic forces that could lead to such an outcome:
(1) the external benefits of the preservation of open space,
(2) the mispricing of public services for new residential development through the property tax, and
(3) excessive auto travel resulting from our failure to properly price auto use.

3

This question asks you to plot several exponential density functions and use them to make inferences about the suburbanization of economic activity. Show up to a distance of 25 km along the horizontal axis in order to clearly identify the shape of the diagram.
3 (a) Using the data in Table 7.1 (in the text), plot the exponential population density functions for Toronto and Montreal on a single graph. Which city is more compact, by this measure?

3 (b) Using the data in Table 7.3 (in the text), plot the population density functions for Chicago 1880 and 1956 on a single graph. Did Chicago suburbanize over this period?

(a) Toronto has a lower implied central density and a lower density gradient, so Montreal is more compact. In the figure, the density function for Toronto should have a lower intercept and a
flatter slope, like the density function shown for London in 1931 in Figure 7.2.
Diagram located in R&D answers Question 3 a

(b) The figure should look very much like Figure 7.2. Yes, Chicago suburbanized substantially over this period. Diagram located in R&D answers Question 3 b

4

Generally speaking, cities that are very large, such as Toronto and Montreal, will tend to have _______ central densities and ___________ density gradients than very small cities such as Victoria and Windsor

1) smaller, larger
2) the same, smaller
3) higher, smaller
4)the same, larger

Answer: (3) Generally speaking, larger cities like Toronto tend to have higher central densities and smaller density gradients.

5

Snidder is a small city located on the eastern coast of Canada. Snidder has a population density of 1,200 persons or jobs per square kilometre in the city centre. The population density of the city declines at a rate of 37% per kilometre as one moves away from the city centre. What is the estimated population density 11 kilometres away from the city centre?

1) 34.62 persons or jobs per square kilometre.
2) 20.49 persons or jobs per square kilometre.
3) 1,200 persons or jobs per square kilometre.
4) 444 persons or jobs per square kilometre.

Answer: (2) The estimated population density function is D(d) = Doe^(-gd). Therefore the population density 11 kilometres away from the city centre is D(11) = 1,200e^(-0.37 × 11) = 1,200 × 0.0170773885 = 20.492866 persons or jobs per square kilometre.

6

The monocentric model does a good job of accounting for general patterns in the spatial behaviour of land prices and population densities. However, the model does have weaknesses. Which of the following is/are drawbacks of the monocentric model?

A. The model assumes that every worker commutes along a straight line connecting his or her home and his or her job.
B. The model assumes that no employees commute across the CBD to get to work.
C. The model assumes that no employees commute from the city centre out towards the suburbs.
D. The model assumes that an employee's job is located between their place of residence and the city centre.

(1) Only Statement A is true.
(2)Only Statements B and C are true.
(3) Only Statements A, C, and D are true.
(4) All the above statements are true.

Answer: (4) The monocentric model does a poor job of predicting the level of commuting that occurs in cities. The model assumes that every worker commutes along a line connecting his or her home and her job. No one in a monocentric city commutes across the CBD to a job on the other side of town, or commutes outward from the city centre toward a suburban job. Even if some employment is located outside of the city centre, the model predicts that the workers who hold these jobs should commute inward from homes located even further from the downtown.

7

The most comprehensive and widespread change that has occurred in cities in the last century is that they have become more dispersed. This process is known as __________.

1) suburbanization
2) urbanization
3) flattening
4) localization

Answer: (1) By far the most widespread and comprehensive change that has occurred in cities over the last century or so is that they have become more dispersed. This process is known as decentralization or suburbanization. In intuitive terms, suburbanization can be defined as a gradual decline in the share of economic activity that is located in the city centre. In more careful terms, suburbanization can be measured by the flattening of urban population density functions over time.

8

Which of the following statements is/are TRUE about suburbanization?
A. Suburbanization seems to occur in all countries.
B. Suburbanization has been occurring for at least 200 years.
C. Suburbanization cannot be avoided
D. Suburbanization occurs only in large cities because only in large cities is the price of land near the city centre bid up so high that residents begin to move far away from the city centre.

1) Only Statement A is true.
2) Only Statements B and C are true.
3) Only Statements A, B, and C are true.
4) All the above statements are true.

Answer: (3) Suburbanization seems to occur in all cities in all countries and is unavoidable. Suburbanization is not just a recent phenomenon. For example, it has been occurring since at least 1800 in London. As cities grow, they inevitably expand outward, since most vacant land is found at the periphery.

9

According to the natural evolution view, what are the two fundamental economic events that gradually transformed the large industrial cities of the 19th century?

1) Higher demand for more and better housing and decreasing incomes.
2) Rising incomes and falling transportation costs.
3)Growing population and decreasing wealth.
4) Higher demand for quality houses and growing wealth.

Answer: (2) According to the natural evolution view, the large industrial cities of the 19th century were gradually transformed by two fundamental economic events: rising incomes and falling transportation costs. The natural evolution explanation of suburbanization is completely consistent with the predictions of a monocentric model of a city.

10

According to Goldberg and Mercer, why are cities in Canada more compact than cities of comparable size in the US?

1) There are fewer freeway miles per capita in Canada.
2) There is higher public transit use in Canada.
3) Auto commuting is more expensive in Canada.
4) All of the above are correct.

Answer: (4) Cities in Canada are more compact than cities of comparable size in the US. With regard to the natural evolution explanation, Goldberg and Mercer document that there are fewer freeway miles per capita, and much higher levels of public transit use in Canada than in the US. These observations are consistent with the hypothesis that auto commuting is more expensive in Canada, which is consistent with the apparent differences in urban density patterns.

11

Many people feel that our cities are too decentralized. There are many issues involved in the debate about sprawl. Which of the following statements is/are an explanation for why market determined land use patterns can be considered inefficient (in the sense that they involve too much dispersion of economic activity in cities)?

A. There are external benefits from preserving open space in cities. Residents may value having access to undeveloped areas near the city for aesthetic reasons. These positive externalities would be ignored by individual property developers, and this would lead them to preserve too little open space.
B. Some new developments do not pay a fair share of the costs that they impose on municipal governments.
C. Underpriced auto travel causes the boundary of the city to expand.

1) Only Statement A is correct.
2) Only Statement B is correct.
3) Only Statements A and B are correct.
4) All of the above statements are correct.

Answer: (4)
There are external benefits associated with preserving open space in cities. For example, residents may
value having access to undeveloped areas near the city for aesthetic reasons. These positive externalities
would be ignored by individual property developers, and this would lead them to preserve too little open
space. Some new developments do not pay a fair share of the costs that they impose on municipal
governments. Property taxes are the main source of revenue for most local governments, and property
tax payments may not accurately reflect the costs of providing infrastructure and other public services
to new residential development. Unless other charges or fees are levied on new development, costs may
be too low, and this would cause developers to convert too much land from agriculture to urban uses.
Auto use generally involves a negative externality. When an individual chooses to travel on a congested
road, he or she does not account for the impact of his or her choice on the travel times of other drivers.
In the absence of congestion tolls or some other policy designed to internalize this externality, the result
is that auto travel in cities is underpriced and consequently the level of auto travel in cities is
inefficiently large. This inefficiency impacts the market for land. The inefficiently low cost of
commuting by car causes cities to be too spread out.

12

The employment density gradient in Ottawa is generally _____ than the population density gradient because ____________________.
(1) larger, residences are less suburbanized or more centralized on average than jobs.
(2) smaller, residences are more centralized or less suburbanized on average than jobs.
(3) larger, jobs are more centralized or less suburbanized on average than residences.
(4) smaller, jobs are less centralized or more suburbanized on average than residences.

Answer: (3)
The employment density gradient is generally larger than the population density gradient, indicating that
jobs are more centralized or less suburbanized on average than residences.

13

If an industry locates both in the city centre and in a subcentre 10 kilometres from the city's centre, what does the bid rent function for the industry look like?

1) The industrial bid rent function is ONLY lower than the residential bid rent at the city centre.
2) The industrial bid rent function is ONLY higher than the residential bid rent at the city centre.
3) The industrial bid rent function is lower than the residential bid rent at the city centre AND around the subcentre 10 kilometres from the city centre.
4) The industrial bid rent function is higher than the residential bid rent at the city centre AND around the subcentre 10 kilometres from the city centre.

Answer: (4)
The industrial bid rent function is higher than the residential bid rent at the city centre AND around the
subcentre 10 kilometres from the city centre because at these locations, the industry outbids residents
for land use