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1. Intensive subsistence agriculture is characterized by
A. equal emphasis upon crops and animals.
B. high yields per unit of cultivated land.
C. farms that specialize in producing a single crop.
D. high first-year yields, followed by production
declines and land abandonment.
2. Three dominating characteristics of commercial economic systems are
A. urbanization, production equilibrium, and monetary exchange.
B. comparative advantage, market equilibrium, and inelastic demand.
C. specialization, profit motivation, and interdependence.
D. profit equilibrium, market competition, and variable pricing.
3. All of the following statements about nomadic herding are true EXCEPT that it
A. is increasing in importance as the population dependent on it increases.
B. involves the controlled movement of livestock.
C. depends upon the availability of natural forage.
D. is the most extensive of agricultural land use systems.
4. In planned economies, the location of manufacturing
A. is relatively immobile compared to commercial economies.
B. may be determined by other than competitive market forces.
C. is determined by availability of labor and by regional comparative advantage.
D. need pay no attention to cost of inputs.
5. All of the following statements about intensive subsistence agriculture are true EXCEPT that it
A. involves total concentration upon a single, intensively produced crop.
B. requires large inputs of labor, small plots, and high reliance on fertilizers.
C. involves product diversification with grain, vegetables, and animals—all part of the farm economy.
D. has spread to marginal lands as population pressure has increased.
6. All of the following statements about agriculture in commercial economic systems are true EXCEPT
A. that it is characterized by specialization, profit, and interdependence.
B. in response to low farm prices and crop surpluses, it is being replaced by midlatitude intensive subsistence
farming and shifting cultivation.
C. the crop or livestock mix selected by commercial farmers reflects assessment of production and marketing
costs and market demands and prices.
D. it involves intensive land use near markets and extensive land use at more distant locations.
7. All of the following statements about shifting or swidden cultivation are true EXCEPT that
A. low initial yields are followed by steadily increasing productivity that peaks at about ten years.
B. productivity is maintained by rotation of cultivated plots rather than of crops.
C. it involves about one-fifth of the world's land area.
D. its greatest problems are declining soil fertility and increasing population pressure.
8. Wherever practiced, subsistence farming is oriented toward
A. insect elimination.
B. yield maximization.
C. fertility preservation.
D. risk minimization.
9. Secondary industry differs from tertiary activity in that
A. secondary activity is raw material oriented; tertiary industry is footloose.
B. secondary industry gives form utility; tertiary activity provides place utility.
C. secondary industry is footloose; tertiary activity is site-specific.
D. secondary activity is ubiquitous; tertiary industry is market oriented.
10. In free market economies, the location of industry is primarily determined by
A. transportation costs.
B. profit-maximizing considerations.
C. governmental goals.
D. market locations.
11. The supply curve indicates that as the price of a good increases,
A. more of it will be offered for sale.
B. there will be fewer producers.
C. greater specialization will occur.
D. the demand for it will increase.
12. In general, the more economically advanced a society is, the more important to it are
A. ubiquitous industries.
B. primary activities.
C. nonnative labor forces.
D. tertiary activities.
13. Most transnational corporations
A. have located their home offices in developing countries with low tax rates.
B. have sought to compete in multiple industries to achieve stability through diversification.
C. operate in only a few industries.
D. tend, because of their economic strength, to ignore locational principles that guide smaller firms.
14. Which of the following is NOT a primary activity?
A. agriculture
B. forestry
C. mining
D. education
15. The concept of comparative advantage provides an explanation for
A. inflation.
B. market equilibrium.
C. inequality in gross national product.
D. regional specialization.
16. Three categories of economic activities included in the quaternary sector of the economy include
A. agriculture, gathering industries, and extractive industries.
B. retail trade, wholesale trade, and services.
C. information, research, and management.
D. manufacturing, construction, and power production.
17. Which one of the following types of farming is classified as extensive commercial?
A. livestock-grain farming
B. livestock ranching
C. dairying
D. truck farming
18. Which one of the following characteristics is most unique to intensive subsistence agriculture?
A. production geared to international markets
B. use of the plow
C. large input of labor on small plots of land
D. high capital intensity
19. The term Green Revolution refers to
A. the greening of America.
B. reforestation programs in former tropical rain forests.
C. environmental programs sponsored by the United Nations.
D. greater productivity of farmland.
20. Which of the following types of farming is the shortest distance from its market area, according to the von
Thünen model?
A. cash grain and livestock
B. extensive grain farming
C. mixed farming
D. dairy farming
21. What are the three most important considerations determining the optimal location of a manufacturing plant,
according to Weberian analysis?
A. land costs, taxation, cost of living
B. financial inducements, construction costs, capital intensity
C. transportation costs, labor costs, agglomeration economies
D. raw material costs, energy costs, industrial water supply
22. Of the following, the state with the highest concentration of high-technology industry is
A. California.
B. Ohio.
C. Pennsylvania.
D. Florida.
23. The distribution of low-level services is determined by
A. effective demand.
B. place utility.
C. zoning controls.
D. least-cost assessment.
24. A maquiladora is a Mexican
A. industrial crop.
B. border industry.
C. coastal industry.
D. ubiquitous industry.
25. Collectivized farming is an example of
A. commerical economy.
B. subsistence economy.
C. planned economy.
D. peasant economy.
26. Which one of the following is not a major manufacturing region of the world?
A. Eastern Europe
B. Southern Europe
C. Central and Western Europe
D. East Asia
27. The Mining Act of 1872 reserved to the people of the United States all profits from exploitation of minerals
on public land.
True False
28. Market equilibrium is achieved at a price producing a supply of a good sufficient to meet demand for it.
True False
29. Because of the strength of its farm and mining sectors, the service industries are less important in the United
States than in other advanced economies.
True False
30. Quaternary activities provide place utility for transnational corporations.
True False
31. Agglomeration economies reflect cost savings resulting from the clustering of economic activities.
True False
32. The "Group of 77" seeks a restructuring of world trade preferences and pricing to benefit the least developed
True False
33. A subsistence economic system implies nearly total self-sufficiency of its members.
True False
34. The von Thünen model is based on the observation that the value of agricultural land is naturally endowed
and independent of market locations.
True False
35. In commercial economies, goods and services are created primarily for the consumption of producers.
True False
36. The von Thunen model of agricultural land use is based on the soil productivity and the use of heavy
True False
37. Nomadic herding is an example of intensive subsistence agriculture.
True False
38. In planned economies market forces determine the location of industries.
True False
39. Quaternary sector employment is spatially closely tied to both resources and markets.
True False
40. Once least-cost industrial sites are discovered, they may be assumed to remain permanently as most
advantageous locations.
True False