Chapter 7: The Geographic Divide: Booming Metropolis, Broken Cities

Question 1

Term showcasing disdain for broken cities:

Answer 1

Flyover cities

Question 2

Provincial cities diminished due to cheaper …. elsewhere re its respective industry e.g. steel making in ……

Answer 2

Labour

Sheffield

Question 3

Interdependent firms relying on each other as specialise in different things known as …

Answer 3

Economies of agglomeration

Question 4

Movie showing difficulties Sheffield face due to decline of steel industry:

Answer 4

The Full Monty

Question 5

The ideologues of the right believe that, as long as government do not interfere, ….. forces will address the problem. Merely ideological belief. For actual knowledge, we need ….

Answer 5

market

Experts

Question 6

To bridge gap between booming and dwindling cities, proposes economic rent theory, inspired by ….

Answer 6

Henry George theorem - 19th century.

Question 7

Difference between taxing land owned by farmer and who is toiling the land, and landowner who rents properties to other. Tax the …. because they played no part in generating the gains from …..
Then distribute this tax across society to bride … where necessary.

READ PAGE 133 - 135

Answer 7

Latter
Agglomeration
gap

Question 8

However, taxing landlords will not gain maximum …. as single high paid lawyer in simple apartment gaining more than semi skilled singleton in same apartment.

Answer 8

agglomeration

Question 9

Taxing the gains of agglomeration may even increase efficiency, by curbing …..-…..

Answer 9

rent seeking

Question 10

The right wants to …. the rich; the left want to ….. the rich.
We need to discriminatory amongst them and target those who have captured the fruits of collective effort.

Answer 10

protect

roast

Question 11

Economic rent is the extra income a worker receives – above the …. level they need in order to work.

Answer 11

minimum

Question 12

Each tax rate applicable to the higher incomes would carry a metropolitan …. that would target the rents of agglomeration captured by that skill group.
The captured tax should be distributed across the nation, not the city it was collected in (they do this in USA)

Answer 12

supplement

Question 13

The gains from taxing agglomeration is not to be used to finance …… …., but to meet the costs of restoring them as …. of productive work - required co-ordination v

Answer 13

welfare benefits

clusters

Question 14

Global banks have little incentive to invest in local knowledge - requires local banks that have incentive to accumulate knowledge of local economy in order to …..
Set up ….

Answer 14

survive

Development banks

Question 15

Creating ….. to aid development of business zones. Build relationship from initial contact and continuing indefinitely.
Development Corporation Act intended this but meaning of legislation changed by clever barristers. Judges not educated in economics. m

Answer 15

agencies

Question 16

Utilising local …. to partner with businesses. Ensure they are teaching students subjects that allow prospect of ….. employment.

Answer 16

universities

skilled