Chapter 4 Questons

1. The options foregone when one pursues a certain option is known as
a. Opportunity Cost
b. Transportation Cost
c. Bid-Rent Cost
d. Highest and Best Use of Land
ANSWER: A, Opportunity Cost

2. The central location for commerce in an urban environment and the focal point of the urban growth model is known as the
a. Central Commerce District
b. City Business Division
c. Central Business District
d. City Industrial Center
ANSWER: C, Central Business District

3. True/False - The more accessible a site, the higher rent a site can command.
ANSWER: True

4. True/False - High land value results from high rent value.
ANSWER: True

5. True/False - Land values are directly related to transportation costs.
ANSWER: False

6. True/False - Proximity to education was an important competitive advantage when the US was primarily an industry-based economy.
ANSWER: False

7. True/False - Modern Cities typically have only one nuclei or CBD.
ANSWER: False