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Study the figure above.
a. List some examples of primary, secondary, tertiary, and quarternary activities.
b. Draw on the graph WHERE you think the US economy would be.
c. What percent of the work force in the US economy is engaged in primary activities?
d. Over the last 100 years the US economy has lost many farm jobs and a smaller percentage of the work force work in factories. Some people worry about these changes, while others say that it is part of economic development. Explain
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(1)
(2)
(3)
Which of the sets of graph above[ [(1), (2), or (3)] represent:
a. raw-material orientation (i.e. the lowest cost location for the factory as at the source of the raw material)b. market orientation (i.e. the lowest cost location for the factory is at the market where the customers are)
c. break-of-bulk orientation ( the lowest cost orientation is where large shipments of raw materials is divided into smaller lots)
d. paper manufacturing (approximately 3 tons of wood are used to make 1 ton of paper)
e. an industry where the raw materials are ubiquitous
f. old steel industry where large amounts of coal were need to produce steel)
g. soft drink bottling plant where large amounts of water are added to syrup and then bottled
h. copper concentrating plant used to remove copper from the ore
i. glassmaking where the main raw material is sand which is fond almost everywhere
j. mattresses
k. petrochemical refining
l. explanation of why more breweries in the 1800's were located in the northern states rather than the southern states
m. explanation of the location early commercially produced and easily-spoiled ales in the US
n. breweries where water, which could be considered a ubiquitous raw material, is the primary ingredient by weight and volume
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There are two types of agglomeration economies:
- localization economies, and
- urbanization economies
a. What are agglomeration economies and how do they affect the location of factories?
b. Differentiate between localization economies and urbanization economies
c. Do the following represent (1) localization economies, or (2) urbanization economies?
1. " . . . Most large cities offer a wide array of producer services (also known as business services), which include engineering firms, advertising agencies, printing shops, accounting firms, corporate law firms, temporary employment agencies, freelance editors, corporate trainers, office equipment repair, payroll processing companies, freight forwarders, and the like." (p. 141
2. " . . .tires in Akron, Ohio; glass in West Virginia; chemicals in Texas; lace in Brussels, Belgium; pharmaceuticals in Philadelphia; entertainment in Hollywood; finance in New York City; fashion in Milan; and aircraft in Seattle." pp. 138-9)
3. " Several mechanisms act to reinforce an initial industrial cluster and create a snowballing effect that attracts more activity to the cluster. First, agglomerations allow specialized support networks of suppliers and services to emerge . . ." (p. 139)
4. " . . . cost-saving externalities derive from an increase in the size of the place and accrue to all firms." (p. 141)
5. " Economic clustering of secondary, tertiary, and quaternary companies in metropolitan areas like Toronto, New York, Chicago, and Los Angeles is partly a result of _____________ economies that minimize the transaction costs among myriad urban businesses." (p. 141)
6. " Silicon Valley is a preeminent example of all three mechanisms driving _____________: specialized networks of suppliers and support businesses (inter-industry linkages), specialized labor market, and technological spillover." (p. 140)
7. " A second type of ____________________ economy is the presence of skilled labor." (p. 139)
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What are the three main factors that cause an increase in labor productivity in the industrial economy? (p. 148)
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Define and compare the industrial economy with the postindustrial economy. (pp. 148-151)
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Compare the shares of employment between Illinois and the entire United States. In which two economic categories does Illinois greatly exceed the national average in ratio terms? For the two economic categories with the highest ratios, discuss why you think Illinois specializes in those activities.
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Look at the maps below. Some of the maps show a strong regional concentration of particular industries, with the high-percentage states clustered together, while maps of other categories do not.a. Which economic categories are strongly regionalized, and in which part of the United States and Canada? Why do you think these economic categories might be concentrated in those particular regions?
b. Which economic categories thrive in states and provinces with large cities, and why?
c. Which economic categories are spread fairly evenly across the nation, with little difference between the highest and lowest states, and why?
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a. Compare basic industries with nonbasic industries.
b. (1) Region A has a total labor force of 2,100. Of these jobs, 700 are in the basic sector and 1300 are nonbasic. What is the size of the regional multiplier? (2) AT&T plans to build a new parts factory employing 200 new people in basic jobs. How many total new jobs will be created in Region A?
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