11_Economics of Cities and Agglomeration Flashcards
What is a primary reason for the existence of cities?
Cities exist because they bring people together in close geographic proximity, facilitating mutual security, economic production, social interaction, and political organization that would be difficult to achieve in isolation.
How do cities enable functions that dispersed populations cannot easily accomplish?
Cities support export-import networks, collective infrastructure development, and cultural exchange, enabling efficiencies and opportunities that benefit residents and the broader economy.
What factors might explain why a particular hometown was initially settled?
Early settlements typically occur where natural resources, transportation access (e.g., waterways, rail, highways), and opportunities for economic activity are abundant.
How does understanding your hometown’s location help illustrate broader urban economic principles?
It highlights how proximity to essential resources and the benefits of clustering—such as reduced transportation costs and enhanced social networks—drive the development and growth of cities.
What is notable about Davin’s hometown, Toronto, in terms of urban economics?
Toronto’s location and growth exemplify how cities emerge around key economic resources and infrastructures, fostering vibrant cultural and commercial hubs.
Why is Chicago often cited as an example in urban studies?
Chicago’s historical growth was influenced by its strategic location near waterways, railroads, and later highways, which enabled it to become a major economic and transportation center.
What geographic factors are critical in determining where cities are located?
Proximity to economic resources such as freshwater (which is hard to transport) and access to transportation networks (like waterways, rail, or highways) are crucial in a city’s location decision.
How do transportation costs influence city locations?
Higher transportation costs incentivize clustering near critical resources, reducing expenses and enabling more efficient exchange of goods and services, which in turn attracts populations.
Why are not all cities the same size despite similar access to resources?
City size is influenced not only by local natural resources but also by agglomeration economies, historical development patterns, and the efficiency of infrastructure and networks that support larger populations.
What factors might lead some cities to grow much larger than others?
Factors include stronger agglomeration economies, better network efficiencies, and more effective integration of economies of scale and scope, which can drive disproportionate growth compared to smaller urban centers.
What are the primary inputs in macroeconomic production?
The primary inputs include raw resources, labor (measured in people × hours), capital (machinery and infrastructure), and human capital (skills and knowledge).
How do efficiencies in production affect overall output?
The efficiency with which inputs are converted into outputs—through technology, innovation, efficiency, and specialization—determines the productivity and economic performance of a region or city.
What are some key economic forces that determine the size of cities?
Key forces include economies of scale, economies of scope, economies of density, network efficiencies, and agglomeration economies, all of which help explain why larger cities can be more productive and efficient.
How do agglomeration economies contribute to the success of cities?
Agglomeration economies arise when businesses and people cluster together, benefiting from shared services, reduced costs, enhanced innovation, and a more dynamic labor market, which in turn fuels city growth.
