30th May 2022 - Regional Economics

and Land Rent Theory - 2nd Mid-

Term
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1. What is the underlining assumption of the export base theory?

That the region is not specialised

That the region is a small region

That there is idle resource capacity in the region

None of the above

2. What is an endogenous factor?

A factor embedded in the local socio-economic structure

A factor brought from outside into the area

A factor with peculiar characteristics

None of the above

3. In the one-sector model of the neoclassical growth theory, factors

move both towards the same region

 move one towards one region, the other towards the other region

do not move

None of the above

4. What is the role of transport infrastructure in regional development?

A necessary and sufficient condition for growth

A necessary condition for growth

A necessary but not sufficient condition for growth

A sufficient condition for growth

5. What does generate a differential rent in Ricardo’s model?

The difference in the distance to the city centre

The difference in fertility of lands

The different willingness to pay

None of the previous ones is correct

6. Which is the lever of development in Perroux’s growth-pole theory?

The presence of small firms

The presence of a large dominant firm

The specialization of a dominant firm

The location of a dominant firm in an urban area

7. Griliches and Mansfield add to Hägerstrand’s model

The explanation of the invention capacity of the area

 The explanation of the different moment in time, speed and saturation of adoption
across areas

The limits in innovating a new product

The advantages of a local invention

8. In the neoclassical growth theory, which is the mechanism of growth?

The consumption of goods

The presence of capital in an area

The free movement of capital and labour towards regions where they find higher
remunerations

The presence of labour in an area

9. What is the value added of the two-sector model with respect to the one sector
model of the neoclassical growth theory?

It is able to explain divergence

It is able to explain convergence

It is able to explain both divergence and convergence

None of the above

10. Which is the role of space in the local industrial district?

It has no role at all

It has a passive role

It has an active role

It has both a passive and an active role

11. Which is the main value added of the SOUDY model?

 It explains the dynamics of an urban area through structural changes

It explains the dynamics of an urban area through specialization

It explains the dynamics of an urban area through diversification

None of the above

12. In the local industrial district theory, territory is a resource for firms since

Firms can choose the location they like

Firms are in an urban environment

Firms enjoy advantages that do not pay for

None of the above

13. Provide an example of an exogenous factor

The local presence of a high number of small and medium firms

A multinational firm

A local dominant firm à la Perroux

A large local labour market

14. What makes a city avoid an inefficient size in the SOUDY model?

Its dynamic structure

Its capacity to jump to a higher function

Its size

Its functional specialization

15. Which is the definition of space behind the export-base theory?

 Uniform-abstract space

Diversified-relational space

Physical-metric space

None of the above

16. Which is one of the main limits of the local district theory?

Its static approach

Its attention to sectoral specialisation

Its attention to firms’ localisation

None of the above

17. Which is the limit of the optimal city size?

Cities are treated as they had all the same production function

Cities are treated as they had all the same size

Cities are treated as they were all different

None of the above

18. Which is the main characteristic of the growth pole theory?

The identification of development due to innovation

The identification of development in specific points in space

The identification of development due to sectoral specialization

None of the above

19. The local district theory is able to explain the failure of a local district
 True

False

20. Spatial proximity is the unique characteristic of the industrial district theory

True

False

21. Which is one of the endogenous elements that explains growth in the industrial
district theory?

Macroeconomic conditions

Agglomeration economies

Location of the local district near a large city

None of the above

22. Which is the main value added of the Milieu innovateur theory?

It explains the local sources of innovation

It explains the specialization of a local area

It explains the diversification of a local area

It explains the productivity of a local area

23. What does the neoclassical growth theory explain?

The competitiveness of the region

The short-term growth of the region

The individual wellbeing

None of the above

24.  The presence of a multinational firm in an area has always been interpreted as
a negative aspect

True

False

25. In Ricardo’s model, what would generate the same fertility on land rent?

A value of the marginal rent equal to zero

A value of rent equal to zero

A value of rent depending on land availability

None of the above

26. Which conditions generate district economies?

Specialisation of the area

Concentration of SMEs

Socio-cultural proximity and industrial specialisation

All of them

27. Which of the following alternatives is not a limitation of the export-base

model?

Its a-spatial nature adapted from macroeconomics

The assumption according to which there are no obstacle to an expansion of supply

The impossibility to use the model for long-period predictions due to the intrinsic
assumption that multipliers are stable over time

The analysis of regional development from the point of view of a small economic system
28. Which is the main characteristic of Hägerstrand’s innovation adoption
model?

The identification of the sources of local innovation

The identification of the channels through which innovation spreads over space

The identification of the sources of local productivity

None of the above

29. What are the stages of adoption in Hägerstrand’s model?

Adoption, diffusion and saturation stages

Autharchy, specialization and industrialisation stages

Specialization and terziarisation stages

Adoption and saturation stages

30. How does the export-base model explain export growth?

Through the position of the region in the national economy

Through the position of the region in the European economy

It does not explain it

None of the above

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