1. What are the effects of a Lower wage on Land Market? -Lindsey Olsen
Decrease in resident income shifts the bid-rent curve shifts downward
Decrease in residential bid decreases residential territory and quantity of labor supplied
Decrease in wage (production costs) shifts the business bid-rent curve shifts upward
Increase in business bid-rent increases business territory and quantity of labor demanded
2. How has transportation been affected by urban sprawl? -Huy Din Tran
It causes congestion from the traffic of people commuting to their jobs
Causes more pollution and distribution of car from driving longer distances
More construction of roads and highways
→ Caused by: lower commuting cost and higher income
3. List three factors that contributed to the formation of monocentric cities. -Joshua Ripley
NOTE: you should also be able to explain how the factors contribute to monocentric cities.
Industrial revolution: innovations generated economies of scale
Large-Scale Production: exploit localization economies
Innovation in transportation: Wider exploitation of comparative advantage
4. How does European policy towards sprawl differ from that of the U.S.? -Riley Danford
(I would probably ask it like this: Why do European cities tend to experience less sprawl than American cities?)
European have higher cost of personal transportation (gas tax and auto sales tax)
They promote small neighborhood shops that increase high-density living
Transportation infrastructure favors mass transit
Agriculture subsidies allow fringe farmers to outbid urban uses
5. Give an example of a positional good and explain how the market for that good may be inefficient. -Lance Kaufman
Postional good: products and services whose value is mostly (if not exclusively) a function of their ranking in desirability by others, in comparison to substitutes.
goods which are valued specifically because of their relative quality, can not be created
Fast cars may be considered to be inherently scarce because one’s perception of a car’s speed depends on its relation to other vehicles, but there is still an absolute value attached to satisfaction gained from the speed at which a car can travel; it can be considered as having a positional aspect in that only some cars can be the fastest. Because a car is a complex product made of many other materials, some of which (such as steel) are limited in supply and some which (such as leather) are renewable
1. Can education be a reason for lower income family to move into a higher income neighborhood? Explain why or why not. – Riley Danford
Yes, I believe that it does depend on the family and their priorities. Lower income families typically live in lower income neighborhoods, which have a less funded education and an environment that many students drop out, which could continue the cycle of low income. Moving into a higher income neighborhood would allow a student to be surrounded by peers who potentially could influence and allow them to see the necessity of staying in school to get an education to receive a job. I believe if education is important enough to the decision makers that it would definitely be a reason to move into a higher income neighborhood.
2. What are some consequences of income and racial segregation? What effect do these have on the economy? – Sara O’Neal
Racial Segregation:
No diversity among the community and the community members
Leads to non-walkable streets
Lower satisfaction with life
Different levels of local public goods
Tax based on traits could start to occur
Lower graduation rate that leads to less role models leads to harder time getting a job which results in poverty
Tax:
Vaiation of tax
Lot zoning
Lower income homes that are further away from suburban jobs
When there is a distinct segregation involving income and race I believe it creates great tension between the two. It also leads to a cycle of staying within your own “category.” In the economy those who have low income and are racial segregated leads to crime, poverty, and lack of education.
3. What are individual problems that can lead to homelessness?
How about structural problems? – Kirstie Wilding
Individual:
Addiction, abuse, mental illness, income shock
Structural:
Lack of low income housing, unemployment, Great Depression Analogy
4. What kind of consequences do we see because of homelessness? Explain what inefficiencies it may cause in society. – Huy Dinh Tran
Health, abuse, social stigma, security
Costs:
Congestion in park/walkways
Lost productivity
Empathic cost
Debates among if they should provide homeless shelters
Cost of upholding homeless shelters.
Externalities
Expenses
5. How does segregation improve the provision of public goods and the equity of taxation? – Lance
Segregation leads to improvements of provisions of public goods because the individual segregated neighborhoods can supply and make the goods that they need and want. There is no unnecessary extra supply among the neighborhoods but what is produced is what is demanded. Taxation wit segregation could result people being taxed better fitting their current income status and situation.
1.Why would converting a lane to a HOV/Bus lane slow down/speed up traffic in the remaining lanes? -Mark Prats
-Modal Substitution: carpool
-Time to Travel: change times
-Change routes
-Combine trips
2.How does Congestion Tax reduce Traffic? -Lindsey Olsen
-Modal Substitution: switch to carpool transit or bike
-Time to travel: switch to off-peak travel
-Travel route: switch to less congested route
-Location Choices: change residence or workplace, cutting travel distance
