Question

4)

Long Beach, CA has a city center that is located on the waterfront. If sea-level increases submerge a portion of the city center, then we expect that

Select one:

a. there will be excess labor supply

b. household bids for residential land will shift upward

c. wages will increase

d. the residential territory will grow

5)

Suppose we have a monocentric city. If a zoning policy is enacted that limits the height of buildings at the city center to the current height of buildings 2 miles from the city center, then which of the following is notexpected to occur

Select one:

a. households will decrease their bid for residential land

b. firms will decrease their bid for business land

c. wages for labor will increase

d. demand for labor will decrease

Answer 1

Q4) Now long beach city centre is the hub of hotels, shopping malls, arcades, amusement parks, water parks etc. Implying it is a commercial area which provides jobs to many people in different sectors. So, if an increase in the sea level submerges a portion of the city centre, many business will be shut down and many people will have lost their jobs. So this will lead to fall in wages, fall in labour supply, residential territory will now be reducing as more land under industry is required. So this will put an upward pressure in household bid for residential land. So correct option is b.

Q5) A monocentric city is one which has one city centre as the central business district or CBD. Now, as we move away from the centre, the height of the buildings decreases and housing prices decline. So limiting the height implies that buildings in the city centre will now have a lesser height. So there will be lesser business places available, so firms will increase their bid for business land. As we go further out, land becomes less attractive to industry but is bought by homeowners. So households decrease their bids for residential land as farther from city centre cheaper is the land. Wages will increase, leading to decrease in labour demand. So correct option is option b.