Verified Test Bank Economic Geography Test Bank Chapter 10

Chapter 10 Test Bank: Economic Geography: Manufacturing and Services Key

1. A characteristic of modern economic growth is

A. That the importance of agriculture as an employer of labor increases.
B. Subsistence societies bypass secondary-stage processing and move to tertiary activities.
C. Secondary activities are replaced by service activities.
D. Service activities are replaced by secondary activities.

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

2. Which is not one of the three primary expenses to be minimized in Weber's least-cost theory for industrial location decisions?

A. agglomeration costs
B. advertising costs
C. transport costs
D. labor costs

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

3. Three dominating characteristics of market-based economic systems are

A. urbanization, production equilibrium, and monetary exchange.
B. comparative advantage, market equilibrium, and inelastic demand.
C. specialization, profit motivation, and interdependence.
D. profit equilibrium, market competition, and variable pricing.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

4. In planned economies, the location of manufacturing

A. is relatively immobile compared to market economies.
B. may be determined by other than competitive market forces.
C. is determined by availability of labor and by regional comparative advantage.
D. need pay no attention to cost of inputs.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

5. The totality of physical facilities and public services existing at a place are known as that locale's

A. service framework.
B. operational medium.
C. infrastructure.
D. support base.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

6. Secondary activities differ from tertiary activity in that

A. secondary activity is raw material oriented; tertiary industry is footloose.
B. secondary activities generate the highest percentage of total output in high income countries.
C. secondary industry is footloose; tertiary activity is locationally fixed.
D. secondary activity is ubiquitous; tertiary industry is market oriented.

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

7. Economies of agglomeration refer to

A. vertical integration of economic production.
B. clustering of firms to take advantage of shared infrastructure, services and skilled workers.
C. the spatial orientation tendencies of bulk-gaining secondary activities.
D. the comparative advantage of transnational corporations.

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Section: 10.05 Tertiary Activities
Topic: High Technology Innovation

8. For the world as a whole at the end of the 20^th century, "services"

A. represented over 60% of gross global product.
B. accounted for less than 50% of gross global product.
C. was declining in importance as less-developed countries became industrialized.
D. was overwhelmingly characterized by the "place utility" functions of wholesaling and retailing.

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Section: 10.06 Consumer Services
Topic: Consumer Services Locational Patterns

9. Manufacturing industries engaged in bulk or weight reduction operations are

A. involved in diet plan promotions.
B. raw material oriented.
C. part of the quaternary sector.
D. examples of high-tech manufacturing.

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

10. In Weber's least-cost theory of industrial location, the major factor in the location of industry is

A. transportation costs.
B. import and export tariffs.
C. government subsidies.
D. labor costs.

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

11. The supply curve indicates that as the price of a good increases,

A. more of it will be offered for sale.
B. there will be fewer producers.
C. greater specialization will occur.
D. the demand for it will increase.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

12. In general, the more economically advanced a society is, the more its output will be concentrated in

A. agriculture.
B. manufacturing.
C. services.
D. transportation and communications.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

13. Which of the following industries is LEAST likely to locate near the market for its finished products?

A. soft drink and beer bottling
B. automobile assembly
C. mattress manufacturing
D. plywood mill

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

14. Three categories of economic activities included in the business services sector of the economy include

A. agriculture, gathering industries, and extractive industries.
B. retail trade, wholesale trade, and consumer services.
C. finance, insurance, and real estate
D. manufacturing, construction, and power production.

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Section: 10.06 Consumer Services
Topic: Service Activities and their Locational Controls

15. Despite making up less than 10% of the total value of world trade, trade talks have been stymied by lack of agreement over trade in

A. high technology products.
B. minerals.
C. services.
D. agricultural products.

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Section: 10.04 Transnational Corporations
Topic: Industrial Location Theory and Other Locational Considerations

16. Of the following, the state with the highest concentration of high-technology industry is

A. California.
B. Ohio.
C. Pennsylvania.
D. Florida.

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Section: 10.06 Consumer Services
Topic: High Technology Innovation

17. The world leader in the value of world trade in services is

A. the United States.
B. the United Kingdom.
C. Germany.
D. China.

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Section: 10.07 Business Services
Topic: Business Services and Locational Patterns

18. New advances in information technology and data transmission have

A. by-passed less developed countries, damaging further their already poor economic prospects.
B. reduced the international tradability of services as home country quaternary activities expand.
C. discouraged foreign direct investment and favored domestic high-tech concentrations.
D. enhanced the comparative advantage of developing countries in labor-intensive services.

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Section: 10.07 Business Services
Topic: Business Services and Locational Patterns

19. A maquiladora is a Mexican

A. industrial crop.
B. border industry.
C. coastal industry.
D. ubiquitous industry.

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

20. A leading country to which services have been outsourced is

A. China.
B. Mexico.
C. Japan.
D. India.

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Section: 10.06 Consumer Services
Topic: Business Services and Locational Patterns

21. Which one of the following is NOT a major manufacturing region of the world?

A. Eastern Anglo America
B. Central Africa
C. Central and Western Europe
D. East Asia

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Section: 10.05 Tertiary Activities
Topic: World Manufacturing Patterns and Trends

22. Tertiary activities include

A. Consumer services and business services
B. Tourism and ship-building
C. Raw material oriented locations and raw material transportation
D. Gambling and casino construction

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

23. Business services depend on providing

A. Services for other servicers
B. Raw materials for industry
C. Transportation corridors for key cities
D. Computer hardware for software engineers

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

24. High-tech industries are NOT typified by

A. Robotics
B. Electronic controls
C. Computer-aided designs
D. Lower worker productivity

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Section: 10.03 High-Tech Innovation
Topic: High Technology Innovation

25. Locational tendencies of high tech industries do NOT include

A. Important break-of-bulk centers
B. Proximity to major research universities
C. Locally available venture capital
D. Locational agglomeration

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Section: 10.03 High-Tech Innovation
Topic: High Technology Innovation

26. Tertiary activities do NOT

A. Enter world trade
B. Constitute a factor in China's recent growth
C. Include world-wide competitive manufacturing
D. Include consumer services

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

27. How has the "new international division of labor (NIDL)" come about?

A. Exporting goods from industrial countries and sending raw materials from less developing regions
B. Increasing the subdivision of manufacturing processes into larger steps
C. Offshoring manufacturing activities to developing regions
D. Developing manufacturing regions in formerly agricultural areas

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

28. The four Asian tigers are:

A. South Korea, Hong Kong, Singapore, Taiwan
B. North Korea, Afghanistan, Iran, and Iraq
C. Thailand, Malaysia, Haiti, Philip[pines
D. China, India, Japan, Pakistan

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Section: 10.02 World Manufacturing Patterns and Trends
Topic: World Manufacturing Patterns and Trends

29. Industrial location theory assumes that

A. Industries are market-oriented
B. Industries agglomerate
C. Manufacturers are not concerned with profit
D. Consumers are economically rational

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

30. A good example of market-oriented industry is

A. Aluminum manufacturing
B. Baked goods manufacturing
C. Fish processing
D. High-end automobile manufacturing

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

31. Just-in-time manufacturing is aimed at

A. Getting goods to the manufacturer as soon as possible
B. Using storage space extensively
C. Reducing inventories through the production process
D. Reducing pollution during high production periods

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

32. Outsourcing is a production process which depends on

A. Subcontracting production work
B. Purchasing goods from abroad
C. Using high hourly compensation workers
D. China

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

33. Foreign Direct Investment (FDI) has been a significant engine of globalization.

TRUE

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Section: 10.04 Transnational Corporations
Topic: Transnational Corporations and Global Economy

34. Just-in-time manufacturing is a characteristic of flexible production systems.

TRUE

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

35. High-tech industries have tended to become regionally concentrated.

TRUE

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Section: 10.06 Consumer Services
Topic: High Technology Innovation

36. Once least-cost industrial sites are developed, they maintain their comparative advantage indefinitely due to agglomeration economies.

FALSE

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

37. The developing world's share of gross global product has remained the same over the past fifty years.

FALSE

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

38. Because of the strength of its farm and mining sectors, the service industries are less important in the United States than in other advanced economies.

FALSE

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Section: 10.06 Consumer Services
Topic: Consumer Services Locational Patterns

39. A vegetable canning operation is likely to be located near the consumer market because of perishability concerns.

FALSE

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

40. Transnational corporations are well positioned to exploit the principle of comparative advantage.

TRUE

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Section: 10.07 Business Services
Topic: Transnational Corporations and Global Economy

41. Agglomeration economies reflect cost savings resulting from the clustering of economic activities.

TRUE

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

42. Transnational corporations are an important factor in the globalizing world economy.

TRUE

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Section: 10.07 Business Services
Topic: Transnational Corporations and Global Economy

43. Business service workers are highly concentrated in major metropolitan centers and political capitals.

TRUE

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Section: 10.06 Consumer Services
Topic: Business Services and Locational Patterns

44. The Asian "dragons" include Malaysia, Indonesia, and Thailand.

TRUE

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Section: 10.04 Transnational Corporations
Topic: World Manufacturing Patterns and Trends

45. China has surpassed the United States in exporting information-technology goods, such as laptop computers, mobile phones, and digital cameras.

TRUE

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Section: 10.03 High-Tech Innovation
Topic: High Technology Innovation

46. Classical location theories have proven to be as applicable to high-tech activities as to traditional secondary industries.

FALSE

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Section: 10.05 Tertiary Activities
Topic: High Technology Innovation

47. In planned economies, market forces determine the location of industries.

FALSE

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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

48. In market economies, goods and services are created primarily for the consumption of producers.

FALSE

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

49. What are some well-known high technology clusters in the United States?

Answers will vary

Bloom's Level: 2. Understand
Gradable: manual
Section: 10.05 Tertiary Activities
Topic: High Technology Innovation

50. What is the term that refers to the maximum level of exploitation of a renewable resource attainable without endangering replenishment for future production?

Maximum sustainable yield

Bloom's Level: 1. Remember
Gradable: manual
Section: 10.03 High-Tech Innovation
Topic: Industrial Location Theory and Other Locational Considerations

51. Summarize in words and a diagram the Weberian least-cost industrial plant location solution to minimize transportation costs with two raw material inputs and a market, all in different locations.

Considerations include transportation costs which depend upon the location of raw materials, and markets. The plane table diagram represents the pull of raw materials and market locations. The optimal location minimizes total transportation costs.

Bloom's Level: 2. Understand
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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

52. What is meant by the term "comparative advantage?" How does the concept help us to understand current world trends in manufacturing and trade?

Comparative advantage implies the concentration of national effort upon production of goods that can be exchanged for other, needed commodities that are more efficiently produced by other countries. It underlies arguments in favor of free trade and helps explain the relocation of manufacturing in developing countries for export to advanced countries.

Bloom's Level: 2. Understand
Gradable: manual
Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

53. Compare the relative allocation of economic activity among the primary, secondary, and tertiary sectors for post-industrial, newly industrialized, and least developed countries in the world economy.

Post-industrial economies have most of their output in the services category. For newly industrialized countries, manufacturing and services are important. For the least developed countries, most of their output is in the agricultural sector.

Bloom's Level: 2. Understand
Gradable: manual
Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

54. What has been the impact of high technology industries on the patterns of economic geography? List three locational tendencies of these industries.

Answers will vary.

Bloom's Level: 2. Understand
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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

55. Explain the difference between a Fordist mode of operation and a just-in-time production system.

Answers will vary.

Bloom's Level: 2. Understand
Gradable: manual
Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

56. What advantages do firms gain from clustering by other similar firms?

Agglomeration economies include shared infrastructure, capital, services, and skilled labor force.

Bloom's Level: 2. Understand
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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

57. What is the name of the concept which refers to the clustering of productive activities and people for mutual advantage?

Agglomeration

Bloom's Level: 1. Remember
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Section: 10.05 Tertiary Activities
Topic: Industrial Location Theory and Other Locational Considerations

58. What are the four major industrial concentrations in the world?

Northeastern and Midwestern United States and Eastern Canada, Western and Central Europe, Eastern Asia, and Eastern Europe.

Bloom's Level: 1. Remember
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Section: 10.05 Tertiary Activities
Topic: World Manufacturing Patterns and Trends

59. Outsourcing is

A. choosing alternate sources of raw materials.
B. physically delimiting a company's market for others.
C. producing parts or products abroad for domestic sale.
D. selling goods at a cheaper price to close down competitors.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

60. Which of the following is not a major manufacturing region?

A. Eastern Asia
B. Eastern Europe
C. West and Central Europe
D. Western South America

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Section: 10.02 World Manufacturing Patterns and trends
Topic: World Manufacturing Patterns and Trends

61. According to Alfred Weber, what category of costs was the major consideration determining industrial location?

A. Labor
B. Materials
C. Production
D. Transportation

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

62. Industries that are considered "footloose"

A. are fly-by-night operations.
B. are found in predominantly agricultural areas.
C. are not affected by transportation costs.
D. require multiple sources of raw materials.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

63. The concept of Comparative Advantage provides an understanding of

A. regional specialization.
B. locating plants near raw material sources.
C. lower wage rates in the United States.
D. high market demand for products.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

64. Flexible production

A. is self-sufficiency applied to an industrial setting.
B. requires acquisition of components from outside suppliers.
C. requires a large inventory of supplies.
D. works well in a Fordist industrial setting.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

65. The least expensive form of freight movement for long distances is nearly always

A. air transportation.
B. railway transportation.
C. water transportation.
D. highway transportation.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

66. The forerunner of a wider, new pattern of world industrialization that has emerged in recent years is

A. Eastern Asia.
B. Northeastern United States.
C. Australia.
D. Mexico.

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Section: 10.02 World Manufacturing Patterns and trends
Topic: World Manufacturing Patterns and Trends

67. Silicon Valley, North Carolina's Research Triangle, and Silicon Valley North around Ottawa, Canada, are concentrations of

A. advanced quaternary-level services.
B. high technology industries.
C. retailing and wholesaling activity.
D. traditional heavy-industry manufacturing.

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Section: 10.03 High-Tech Innovation
Topic: High Technology Innovation

68. The benefit of just-in-time methodologies is that they

A. do not allow producers to shift quickly as markets change.
B. allow for infrequent ordering or materials and the stockpiling of finished products.
C. depend on single plant location theories.
D. reduce inventories of materials and storage of finished products.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

69. The economic decisions of a country are affected by all of the following factors except

A. cultural considerations.
B. dependency ratios.
C. political policies.
D. technological development.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

70. Many foreign-owned factories have relocated to China, Taiwan and similar areas because of

A. their proximity to major populations.
B. more highly skilled workers.
C. lower labor costs.
D. political instability in Europe.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

71. Which tertiary activity is the world's largest industry in jobs and total value generated?

A. Retail
B. Information technology
C. Stock market
D. Tourism

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Section: 10.06 Consumer Services
Topic: Consumer Services Locational Patterns

72. What term refers to the clustering of productive activities and people for mutual advantage?

A. Spatial margin of profitability
B. Agglomeration
C. Infrastructure
D. Multiplier effect

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

73. The least-cost theory of industrial location was proposed by

A. Alfred Weber.
B. Alfred Wegener.
C. Ted Fujita.
D. Walter Christaller.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

74. Assembly line production of identical commodities by a rigidly controlled and specialized labor force for generalized mass markets is known as

A. toyotaism.
B. hondaism.
C. chevroletism.
D. fordism.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

75. "Sister" plants to American companies that are established in Mexico within 12 miles of the US border for duty free-assembly of products destined for re-export are

A. fabricas.
B. ciudads.
C. maquiladoras.
D. plantas.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

76. Abandoned factories and mills, found throughout US cities, are examples of changes to the US economy and are known as

A. secondary sites.
B. brownfields.
C. grayouts.
D. postindustries.

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

77. No matter what the type of economic system, no advanced economy can flourish without which of the following variables?

A. Well connected transport network
B. Dominant agricultural sector
C. Entrenched government control
D. Manufacturing orientation

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Section: 10.01 Industrial Location Theory
Topic: Industrial Location Theory and Other Locational Considerations

78. The majority of all workers in the United States are involved in which sector of the economy?

A. Primary
B. Secondary
C. Tertiary
D. Global

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Section: 10.05 Tertiary Activities
Topic: Service Activities and their Locational Controls

Chapter 10 Test Bank: Economic Geography: Manufacturing and Services Summary

Category-# of Questions

Accessibility: Keyboard Navigation-68

Bloom's Level: 1. Remember-66

Bloom's Level: 2. Understand-12

Gradable: automatic-68

Gradable: manual-10

Section: 10.01 Industrial Location Theory-27

Section: 10.02 World Manufacturing Patterns and Trends-1

Section: 10.02 World Manufacturing Patterns and trends-2

Section: 10.03 High-Tech Innovation-5

Section: 10.04 Transnational Corporations-3

Section: 10.05 Tertiary Activities-28

Section: 10.06 Consumer Services-8

Section: 10.07 Business Services-4

Topic: Business Services and Locational Patterns-4

Topic: Consumer Services Locational Patterns-3

Topic: High Technology Innovation-9

Topic: Industrial Location Theory and Other Locational Considerations-44

Topic: Service Activities and their Locational Controls-9

Topic: Transnational Corporations and Global Economy-3

Topic: World Manufacturing Patterns and Trends-6