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planning 3 > Location Theory > Flashcards

Location Theory Flashcards

1
Q

The Foundation of Planning and other
Economic Theories and
Models

A

Location Theory

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2
Q

is concerned with the geographic location of economic activities

A

Location Theory

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3
Q

it addresses the questions of what economic activities are located
where and why.

A

Location Theory

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4
Q

It rests primarily on the assumption that agents act in their
own self-interest.

A

Location Theory

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5
Q

Early location theory was concerned with agricultural land use, as
modeled by

A

von Thunen

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6
Q

industrial location theory

A

Alfred Weber

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7
Q

seeks to explain the
basic, universal factors that determine
and influence the location of all kinds
of economic activity”

A

Location theory

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8
Q

“just as there are economic laws which determine the life of the economy, so are there special economic-geographic laws determining the arrangement of towns”

A

Christaller 1932

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9
Q

location factors for businesses

A

-land and its attributes
-labor and management
-capital
-materials and power-organization, behavior and change
-market and price
-transportation and freight rates
-agglomeration, linkage and external economies
-public policy, planning, and the state

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10
Q

different types of economic activities

A
  1. primary activities
    • agriculture, hunting, fishing
    • mining, resource extraction
  2. secondary activities
    • manufacturing
    • construction
  3. tertiary activities
    • retail
    • services
  4. quaternary activities
    • information technology
    • media
    • research and development
  5. quinary activities
    • producer activities
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11
Q

was an English political economist and
was one of the most influential classical
economists.

A

David Ricardo (19 April 1772 – 11 September
1823)

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12
Q

known for his Differential Rent Theory
based on fertility, but he also gave “situation” as
a possible cause of rent.

A

David Ricardo

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13
Q

the difference between the
produce obtained by the employment of two equal
quantities of capital and labor.

A

Economic Rent

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14
Q

the payment over and above what is necessary
to stay in business

A

Economic Rent

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15
Q

was a prominent nineteenth century
German economist and landowner,

A

Johann Heinrich von Thunen (24 June 1783 - 22
September 1850)

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16
Q

first volume of treatise, developed the first serious treatment of
spatial economics, connecting it with the theory of rent first developed by David Ricardo

A

The Isolated State
(1826)

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17
Q

That is, von Thunen
took the Ricardian notion of rent one step further
by introducing _________ and ________

A

distance and space

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18
Q

He is
sometimes referred to as the father of location
theorists.

A

Johann Heinrich von Thunen

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19
Q

Postulates that transport cost depends on the
distance from the market and different kinds of
products. The gain from farming per unit area
(locational rent) decreases with increasing
distance from the market.

A

Johann Heinrich von Thunen

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20
Q

Coined the term Location rent (land value)

A

Johann Heinrich von Thunen

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21
Q

economic rent minus the costs
associated with transporting products to market.

A

Location rent (land value)

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22
Q

gave a predictive model of rural development
around an idealized isolated urban center, imposing several
simplifications to focus on some of the fundamental
processes at work in settlement patterns and rural economic
activity.

A

Johann Heinrich von Thunen

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23
Q

was
a German economist, sociologist, and
theoretician of a culture whose work was
influential in the development of modern
economic geography.

A

Alfred Weber (30 July 1868 – 2 May 1958)

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24
Q

He is the author of the
Theory of the Location of Industries, studied
industrial location decisions, and built on von
Thunen’s theory by considering not only the costs
of getting goods to market but also the costs of
transporting material inputs to the manufacturing
plant.

A

Alfred Weber (30 July 1868 – 2 May 1958)

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25
Q

Consider transportation cost as the direct function of
the item’s weight and distance shipped.

A

Alfred Weber

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26
Q

He asserted that “all else being equal, manufacturers will
locate their plants either at the market or the source of
the input depending on whether or not the final. The
product gains weight or loses weight in the
manufacturing process”.

A

Alfred Weber

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27
Q

formulated a theory of industrial location in which
an industry is located where the transportation costs of
raw materials and the final product are at a minimum
(least-cost location).

A

Alfred Weber

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28
Q

He gave two special cases of
finding the least-cost location

A

Alfred Weber

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29
Q

The weight of the final product is less than the weight of the raw material going
into making the product.

A

Weber’s Weight-Losing Case

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30
Q

The final product is heavier than the raw materials that requires transport

A

Weber’s Weight-Gaining Case

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31
Q

established that firms
producing goods less bulky than the
raw materials used in their
production would settle near the
raw-material source. Firms
producing heavier goods would
settle near their market. The firm
minimizes the weight it has to
transport and, thus, its transport
costs.

A

Alfred Weber

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32
Q

Extended the von Thunen model to urban land
uses.

A

William Alonso

33
Q

His model gives land use, rent, the intensity of land
use, population, and employment as a function of
distance to the CBD of the city as a solution of an
economic equilibrium for the market for space.

A

William Alonso

34
Q

He postulated that there is an inverse relationship
between transportation cost and rent such that if
transportation cost is high, then the rent is low.

A

William Alonso

35
Q

He developed the “Bid-Price Curve”:

A

William Alonso

36
Q

A set of
combinations of land prices and distances among
which the individual is indifferent (i.e. satisfied with
the combination of land price as well as the
distance at some point).

A

Bid-Price Curve

37
Q

a line that indicates how much a
person is prepared to pay for a unit of land at varying
distances from the market/ the city center.

A

Bid-Price Curve

38
Q

-Wages are higher in the center

A

cost

39
Q

-Local demand for labor is more significant than local supply.

A

cost

40
Q

-Decentralized shopping centers are being developed following road
improvement and increased car ownership.

A

cost

41
Q

-Modern manufacturing industry relies increasingly on heavy road vehicles for
long-distance transportation and incurs lower transport costs on the fringes of
cities than at more central locations.

A

cost

42
Q

-Retailing revenue is determined by the size of the shopping catchment area or
hinterland, not just in terms of population but in terms of purchasing power.

A

revenue

43
Q

-In the case of offices, the spatial distribution, number, and size of the client
establishments determine revenue.

A

revenue

44
Q

-Revenue is thus greatest within the CBD and so are the aggregate costs.

A

revenue

45
Q

-To maximize profits, firms need to locate where they can benefit from both the
greatest revenue and the lowest costs.

A

profitability

46
Q

-Specialized functions and activities serving the urban market will locate centrally

A

profitability

47
Q

-Firms requiring large sites and those attempting to reduce costs of overconcentration
will be attracted to the suburbs.

A

profitability

48
Q

-Firms located close together to benefit from complementary will incur lower costs
because of external economies and enjoy higher revenue due to joint demand.

A

profitability

49
Q

as _______ largely decides the profitability or utility of goods
and services, it subsequently determines the location of activity and the
spatial structure of the urban area supplying these goods and services.

A

price mechanism

50
Q

__________within the CBD are reflected in low
transport costs attracting the greatest demand for commercial sites.

A

high levels of accessibility

51
Q

other possible influences

A

-changes in population, technology, and
transportation
-pressures from redeveloped central areas
-local
and central government policy.

52
Q

Analyzes the size distribution and firm
composition of cities.

A

Walter Christaller

53
Q

A geographical that seeks to explain the
number, size, and location of human
settlements in an urban system.

A

Walter Christaller

54
Q

Settlements simply function as ‘central
places’ providing services to surrounding
areas.

A

Walter Christaller

55
Q

created the central place theory

A

Walter Christaller

56
Q

extends the idea to the
case where there is a hierarchy of cities as well
as a distinction between urban and rural areas.

A

Central Place Theory

57
Q

is based on the idea that
different types of firms have different market
areas and that cities are composed of these
firms.
-A market area is the area over which a firm
can underprice its competitors.
-Size depends on the relative production costs
of firms, the cost of transportation, and the level
of demand.

A

Central Place Theory

58
Q

is a settlement that provides one or more
services for the population living around it.

A

Central Place

59
Q

Simple basic services, i.e. food, and household items (things that
replenish frequently) are said to be low order

A

Central Place Theory

60
Q

Specialized services (e.g. computers, universities) are said to be of
a high order.

A

Central Place Theory

61
Q

Having a high-order service implies there are low-order
services around it, but not vice versa.

A

Central Place Theory

62
Q

Settlements that provide low-order services are said to be loworder
settlements. Settlements that provide high-order services are
said to be high-order settlements.

A

Central Place Theory

63
Q

The minimum population size required to profitably maintain a
service is the threshold population.

A

Central Place Theory

64
Q

The theory consists of two basic
concepts:
1. Threshold
2. Range

A

Central Place Theory

65
Q

the minimum market
needed to bring a firm or city selling
goods and services into existence and
to keep it in business.

A

Threshold

66
Q

the average maximum
distance people will travel to purchase
goods and services.

A

Range

67
Q

The larger the settlements, the fewer their number

A

Central Place Theory

67
Q

The larger a settlement, the farther away a similar size of the
settlement is.

A

Central Place Theory

68
Q

The Range increases as the population increases.

A

Central Place Theory

69
Q

Improved Weber’s theory by introducing
the demand factor.

A

August Losch

70
Q

He assumed that manufacturers are
driven to maximize profit by locating at
the place that maximizes the difference
between revenues and costs.

A

August Losch

71
Q

He went on to assert, however, that it is
impossible for a firm to evaluate all
possible points in order to find “the
place of greatest money profit.”

A

August Losch

72
Q

That is, “selection of a manufacturing
site from among alternative locations
can be viewed as substituting
expenditures among the various
production factors such that the best site
is chosen.”

A

Walter Isard

73
Q

Further developed the isotropic
sphere by introducing the concept of
substitution into a general synthesis of
the works of Von Thunen, Weber, and
Isard.

A

Walter Isard

74
Q

Introduced a behavioral matrix in which
the quantity and quality of information
available to a decision maker are
graphed on the y-axis and their ability to
use information is graphed on the x-axis.

A

Allen Pred

75
Q

In this matrix, the perfect location
decision would be found at the
intersection of perfect knowledge and
the ability to use that knowledge.

A

behavioral matrix

76
Q

created The Impact on Uncertainty of Location

A

David Smith

77
Q

Primarily
concerned with adding more complexity to the isotropic sphere by
introducing the uncertainty principle, which effectively dismisses
the assumptions of perfect knowledge of alternatives and
complete information.

A

The Impact on Uncertainty of Location,

78
Q
A

planning 3 (6 decks)

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