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Question 1Nature and Scope of Economic Geography
Economic geography is best described as the study of which relationship?
- The psychological factors behind individual consumer preferences
- The chronological sequence of technological inventions within a single firm
- The internal accounting systems used by manufacturing companies
- The spatial organisation of economic activity and how it varies from place to place Correct answer.
Explanation
Economic geography examines where economic activities are located, why they cluster or disperse, and how those patterns differ between regions. Its core concern is the spatial dimension of production, exchange and consumption rather than firm accounting or individual psychology.
Question 2Nature and Scope of Economic Geography
Which pair of concepts forms the central analytical tension in economic geography?
- Inflation and deflation
- Space and place Correct answer.
- Labour and capital
- Supply and demand
Explanation
Economic geography constantly negotiates between abstract space, where distance and flows can be modelled, and place, where specific histories, cultures and institutions shape economic life. This tension distinguishes the discipline from general economics.
Question 3Nature and Scope of Economic Geography
In economic geography, the term 'locational factors' refers to which of the following?
- The accounting rules governing depreciation of machinery
- The legal procedures required to register a company in a country
- Conditions such as raw material access, transport cost and labour availability that influence where an activity is sited Correct answer.
- The seasonal calendar followed by agricultural workers
Explanation
Locational factors are the conditions that pull an activity towards or away from a site, including raw materials, transport costs, labour, energy and market access. They are the basic vocabulary for explaining industrial siting decisions.
Question 4Nature and Scope of Economic Geography
A geographer analysing why a tea-processing plant is located near the estates rather than near the port city is primarily applying which concept?
- Comparative advantage
- Weight-losing versus weight-gaining production Correct answer.
- Demographic transition
- Central place theory
Explanation
Tea leaves lose weight and quality rapidly after plucking, so processing near the estates reduces transport cost and spoilage. This is the classic weight-losing raw material case in industrial location analysis.
Question 5Nature and Scope of Economic Geography
Which statement best captures the difference between economic geography and economics as disciplines?
- Economic geography studies only agriculture while economics studies only industry
- Economic geography emphasises the spatial distribution of activity while economics emphasises price and allocation mechanisms Correct answer.
- Economic geography relies solely on fieldwork while economics relies solely on models
- Economic geography ignores markets while economics ignores production
Explanation
Both disciplines study economic life, but economic geography foregrounds where activity occurs and how space shapes outcomes, while economics concentrates on prices, incentives and allocation. The distinction is one of emphasis, not of exclusive subject matter.
Question 6Nature and Scope of Economic Geography
The sectoral classification of an economy into primary, secondary, tertiary and quaternary activities is used in economic geography mainly to do what?
- Determine the tax rate applicable to firms
- Calculate the balance of payments of a country
- Describe how employment and output are distributed across kinds of activity in a region Correct answer.
- Measure the rate of inflation in a region
Explanation
The primary-secondary-tertiary-quaternary scheme groups economic activity by the kind of work performed, allowing geographers to compare regional structures and stages of development. It is a descriptive and analytical device for spatial comparison.
Question 7Nature and Scope of Economic Geography
Which of the following is the strongest example of a 'footloose' industry in economic geography?
- Sugar refining
- Iron and steel smelting
- Cement manufacture
- Software development Correct answer.
Explanation
Footloose industries face few locational constraints because their inputs are light and easily transported, so they can locate almost anywhere. Software development fits this description, whereas smelting, cement and sugar refining are strongly tied to bulky raw materials or markets.
Question 8Nature and Scope of Economic Geography
Which concept explains why firms in the same industry cluster together to share a pool of specialised labour and suppliers?
- Agglomeration economies Correct answer.
- Isotropic plains
- Rent gradients
- Malthusian checks
Explanation
Agglomeration economies are the cost savings firms obtain by locating near one another, through shared labour pools, suppliers and knowledge spillovers. Clustering is thus a self-reinforcing spatial process.
Question 9Nature and Scope of Economic Geography
In von Thunen's model of agricultural land use, what is the primary variable determining which crop is grown at a given distance from the market?
- The average age of the farming population
- The political system of the region
- The annual rainfall of the district
- The transport cost relative to the value of the product Correct answer.
Explanation
Von Thunen's model ranks land uses by the ratio of transport cost to product value, so perishable or high-value crops locate near the market and bulky low-value crops farther out. Distance and transport cost drive the concentric rings.
Question 10Nature and Scope of Economic Geography
Which of the following best illustrates a 'core-periphery' pattern in economic geography?
- Identical sectoral composition in all regions of a country
- Concentration of industry and high incomes in a few metropolitan regions with lagging hinterlands Correct answer.
- Uniform income levels across all districts of a state
- Equal distribution of transport infrastructure in every village
Explanation
Core-periphery models describe the concentration of capital, industry and incomes in core regions while peripheries supply labour and raw materials and lag in development. Uneven development is the defining feature.
Question 11Nature and Scope of Economic Geography
Which method is most characteristic of economic geography when it seeks to explain regional differences through the meanings actors attach to economic practices?
- Regression on national income data
- Input-output accounting
- Remote sensing of land cover
- Qualitative interviewing and ethnographic fieldwork Correct answer.
Explanation
Interpretive and cultural-economic approaches in economic geography use interviews, ethnography and discourse analysis to understand how actors make sense of economic practices in particular places. These methods complement, rather than replace, quantitative spatial analysis.
Question 12Nature and Scope of Economic Geography
Which of the following is a defining feature of a 'weight-gaining' industry in location analysis?
- It must always locate in coastal ports
- It has no transport costs at all
- It tends to locate near its market because its finished product is heavier or bulkier than its inputs Correct answer.
- It tends to locate near raw material sources because its inputs are bulky
Explanation
Weight-gaining industries add bulk or weight during processing, so transporting the finished product costs more than transporting the inputs. They therefore favour market locations to minimise total transport cost.
Question 13Nature and Scope of Economic Geography
The concept of 'time-space compression' in economic geography refers to which phenomenon?
- The expansion of urban land area into surrounding farmland
- The lengthening of working hours in manufacturing regions
- The shrinking of the earth's physical circumference over geological time
- The reduction in the effective friction of distance due to improved transport and communication technologies Correct answer.
Explanation
Time-space compression describes how innovations in transport and telecommunications make distant places feel and function as if they were closer together. It is a relational concept about the experience and organisation of distance, not physical geography.
Question 14Nature and Scope of Economic Geography
Which of these is the clearest example of a 'primary' economic activity?
- Fish processing in a cannery
- Retail banking
- Software design
- Coal mining Correct answer.
Explanation
Primary activities directly extract resources from nature, including mining, farming, fishing and forestry. Coal mining extracts a natural resource and is therefore primary.
Question 15Nature and Scope of Economic Geography
According to central place theory, what primarily determines the range of a good and hence the spacing of service centres?
- The maximum distance consumers are willing to travel to buy the good Correct answer.
- The number of employees in each shop
- The political boundaries of local districts
- The height of buildings in the central place
Explanation
In central place theory the range of a good is the maximum distance consumers will travel for it, which sets the outer limit of its market area. Goods with larger ranges support fewer, more widely spaced centres.
Question 16Nature and Scope of Economic Geography
A geographer argues that a region's economic trajectory cannot be predicted from universal location principles alone because its institutions and history matter. This position is most consistent with which approach?
- Pure neoclassical location theory
- A deterministic environmental approach
- The new economic geography's emphasis on agglomeration alone
- An evolutionary and institutional economic geography Correct answer.
Explanation
Evolutionary and institutional approaches stress path dependence, inherited institutions and historical contingency in shaping regional economies. They reject the idea that universal location laws alone can predict regional trajectories.
Question 17World Economic Systems and Development
Which sector of the economy involves the direct extraction of natural resources such as minerals, crops and timber?
- Secondary sector
- Tertiary sector
- Quaternary sector
- Primary sector Correct answer.
Explanation
Economic activity is classified by how far a product has moved from nature. The primary sector covers activities that directly harvest or extract resources from the environment, such as farming, fishing, mining and forestry. Later sectors process or service these raw materials.
Question 18World Economic Systems and Development
A country's Gross Domestic Product measures which of the following?
- The total market value of final goods and services produced within a country's borders in a year Correct answer.
- The total value of a country's exports minus its imports
- The total money supply circulating in a country's banking system
- The total income earned by a country's citizens wherever they live
Explanation
GDP is a territorial measure: it counts the market value of final goods and services produced inside the country during a given period, regardless of who owns the producing firms. Income earned abroad by citizens belongs to GNP, while the trade balance is only one component of GDP.
Question 19World Economic Systems and Development
In Rostow's model of economic growth, which stage immediately follows the 'take-off' stage?
- The preconditions for take-off
- The age of high mass consumption
- The drive to maturity Correct answer.
- The traditional society
Explanation
Rostow arranged development in five sequential stages: traditional society, preconditions for take-off, take-off, drive to maturity, and the age of high mass consumption. The stage that follows take-off is therefore the drive to maturity, when growth becomes self-sustaining and spreads across sectors.
Question 20World Economic Systems and Development
Which of the following is the best example of a primary economic activity?
- Weaving cotton cloth in a textile mill
- Designing software for a bank
- Teaching in a government school
- Extracting crude oil from an oil field Correct answer.
Explanation
Primary activities remove resources directly from the earth or sea, and crude oil extraction is exactly such an activity. Weaving is manufacturing, teaching is a service, and software design is a knowledge-based service.
Question 21World Economic Systems and Development
The Human Development Index combines which three dimensions?
- Income, industrial output and trade openness
- Population growth, urbanisation and literacy
- Life expectancy, education and per capita income Correct answer.
- Employment, inflation and foreign exchange reserves
Explanation
The HDI is a composite index built from three dimensions: a long and healthy life measured by life expectancy, knowledge measured by schooling, and a decent standard of living measured by per capita income. It deliberately goes beyond purely monetary measures of development.
Question 22World Economic Systems and Development
Which of the following countries is classified as a newly industrialised country (NIC)?
- Nepal
- Bhutan
- Bangladesh
- Singapore Correct answer.
Explanation
Newly industrialised countries are economies that have recently undergone rapid industrialisation and now export manufactured goods. Singapore, along with South Korea, Taiwan and Hong Kong, is the classic example in Asia. The other listed countries remain less industrialised.
Question 23World Economic Systems and Development
Which indicator best captures the degree of inequality in income distribution within a country?
- The inflation rate
- The crude birth rate
- The literacy rate
- The Gini coefficient Correct answer.
Explanation
The Gini coefficient summarises how unevenly income is distributed, ranging from zero for perfect equality to one for complete inequality. Birth rates, literacy and inflation measure other aspects of the economy.
Question 24World Economic Systems and Development
A country has a GDP of 500 billion units and a population of 50 million. What is its approximate per capita GDP?
- 1,000 units
- 10,000 units Correct answer.
- 250 units
- 100,000 units
Explanation
Per capita GDP is found by dividing total GDP by population. Here 500 billion divided by 50 million equals 10,000 units, giving a rough measure of average output per person.
Question 25World Economic Systems and Development
Which of the following best describes the core-periphery model in development geography?
- Regions develop evenly because markets allocate capital efficiently everywhere
- All countries pass through identical stages of growth at the same speed
- Wealth concentrates in core regions while periphery regions supply labour and raw materials Correct answer.
- Development is determined entirely by a country's climate and relief
Explanation
The core-periphery model argues that growth polarises: capital, skilled labour and industry concentrate in core regions, while peripheral regions are left supplying primary products and cheap labour. This produces persistent regional and global inequality rather than even development.
Question 26World Economic Systems and Development
Which of the following is a characteristic feature of a subsistence economy?
- Most production is organised by multinational corporations
- Most workers are employed in knowledge-intensive services
- Most output is exported to distant markets
- Most output is consumed by the producers themselves Correct answer.
Explanation
In a subsistence economy, households produce mainly to feed and support themselves, with little surplus for exchange. Production for export, service employment and multinational organisation are features of more commercialised and industrialised economies.
Question 27World Economic Systems and Development
The term 'demographic dividend' refers to which of the following?
- A government subsidy paid to families with many children
- An increase in the birth rate that expands the future labour force
- The decline in population that follows industrialisation
- Economic growth potential arising from a large share of working-age population Correct answer.
Explanation
A demographic dividend occurs when fertility and dependency ratios fall, leaving a large proportion of the population in working age. If those workers are employed productively, the economy benefits from higher savings and output per head.
Question 28World Economic Systems and Development
Which of the following policies is most consistent with an import-substitution industrialisation strategy?
- Removing tariffs on imported consumer goods
- Imposing high tariffs to protect domestic manufacturing Correct answer.
- Encouraging foreign firms to supply the home market without restriction
- Specialising entirely in primary commodity exports
Explanation
Import substitution seeks to replace imported manufactures with domestically produced goods. High tariffs and quotas on imports protect infant industries until they can compete, which is the opposite of trade liberalisation.
Question 29World Economic Systems and Development
Which of the following is a non-renewable natural resource?
- Wind
- Solar radiation
- Coal Correct answer.
- Tidal energy
Explanation
Non-renewable resources exist in fixed stocks that are depleted by use and cannot be replenished on a human timescale. Coal is a fossil fuel formed over millions of years, whereas wind, sunlight and tides are continuously renewed.
Question 30World Economic Systems and Development
A region's economy depends heavily on exporting a single mineral. Which consequence is most likely according to the resource curse argument?
- Diversified industrial growth driven by stable export earnings
- Volatile revenues and weak development of other sectors Correct answer.
- Rapid and even development across all regions
- Reduced dependence on world commodity prices
Explanation
The resource curse thesis holds that heavy dependence on a single commodity exposes the economy to volatile world prices and can crowd out other sectors. This produces unstable revenues and often weaker long-run development than in more diversified economies.
Question 31World Economic Systems and Development
Which of the following best explains why the tertiary sector's share of employment rises as an economy develops?
- Governments ban the expansion of manufacturing industry
- Rising incomes increase demand for services while manufacturing becomes more capital-intensive Correct answer.
- Agricultural productivity falls so fewer people are needed on farms
- Primary production becomes more labour-intensive over time
Explanation
As incomes rise, households spend a larger share on services such as education, health and tourism. At the same time, manufacturing becomes more mechanised and needs fewer workers per unit of output, so employment shifts towards services.
Question 32World Economic Systems and Development
Which of the following combinations correctly distinguishes economic growth from economic development?
- Growth is a qualitative change in welfare; development is a quantitative rise in output
- Both terms refer only to increases in per capita income
- Growth is a quantitative rise in output; development includes qualitative improvements in welfare Correct answer.
- Growth refers to population increase; development refers to national income
Explanation
Economic growth is a narrow, quantitative measure of rising output or income. Economic development is broader and includes improvements in health, education, equity and living standards, so growth is a necessary but not sufficient condition for development.
Question 33World Economic Systems and Development
A country's nominal GDP rises by 8 per cent while its GDP deflator rises by 5 per cent. What is the approximate real GDP growth rate?
- 5 per cent
- 13 per cent
- 3 per cent Correct answer.
- 8 per cent
Explanation
Real growth is approximately nominal growth minus inflation, here 8 per cent minus 5 per cent, giving about 3 per cent. This adjustment removes the effect of price changes so that the change reflects actual output.
Question 34World Economic Systems and Development
Which of the following statements best reflects the dependency theory critique of modernisation theory?
- All countries can develop by adopting identical cultural values
- Trade always benefits both partners equally regardless of their size
- Development is purely a matter of geographical location
- Poverty in the periphery results from exploitation within a global capitalist system, not from internal backwardness Correct answer.
Explanation
Dependency theorists argue that peripheral countries are impoverished because their surpluses are extracted by core economies through trade and investment. This contrasts with modernisation theory, which attributes underdevelopment mainly to internal conditions in the poor country.
Question 35World Economic Systems and Development
A government wants to raise long-run growth by increasing the productive capacity of the economy. Which measure most directly targets this goal?
- Introducing price controls on essential food items
- Increasing investment in education, health and infrastructure Correct answer.
- Raising subsidies on current consumption of imported goods
- Reducing the money supply to lower the price level
Explanation
Long-run growth depends on the quantity and quality of factors of production and on technology. Investment in education, health and infrastructure raises human and physical capital, expanding productive capacity rather than merely shifting current demand.
Question 36World Economic Systems and Development
Two countries have identical GDP per capita, but country A has a Gini coefficient of 0.25 and country B of 0.55. What can reasonably be inferred about their development?
- Country A has more equal income distribution and likely higher welfare for the average citizen Correct answer.
- Both countries have identical welfare because their average income is the same
- Country B is necessarily richer because inequality drives growth
- Country A must have a higher population than country B
Explanation
Per capita GDP is an average and says nothing about how income is shared. A lower Gini coefficient in country A indicates a more equal distribution, so the typical citizen is likely better off in welfare terms even though average income is the same.
Question 37Population and Economic Activity
In the study of population and economic activity, what does the dependency ratio measure?
- The proportion of national income spent on imported consumer goods
- The number of workers employed in the primary sector relative to the tertiary sector
- The rate at which rural residents migrate to urban areas each year
- The share of a population outside the working-age group relative to those inside it Correct answer.
Explanation
The dependency ratio compares the dependent population, usually those below 15 and above 64, with the working-age population aged roughly 15 to 64. It is expressed as dependents per hundred workers and indicates the burden carried by the productive group. A high ratio signals heavy pressure on health, education and welfare spending.
Question 38Population and Economic Activity
Which sector of economic activity is defined by the extraction of raw materials directly from nature?
- The primary sector Correct answer.
- The secondary sector
- The tertiary sector
- The quaternary sector
Explanation
The primary sector covers activities that harvest or extract resources directly from the environment, such as farming, fishing, forestry and mining. These products are largely unprocessed and form the base for later manufacturing. Secondary activity transforms them, while tertiary and quaternary activity provide services and knowledge work.
Question 39Population and Economic Activity
A country has a crude birth rate of 32 per thousand and a crude death rate of 9 per thousand. What is its rate of natural increase per thousand?
- 9
- 41
- 32
- 23 Correct answer.
Explanation
The rate of natural increase is the crude birth rate minus the crude death rate, ignoring migration. Here 32 minus 9 gives 23 per thousand, equivalent to about 2.3 percent per year. This indicates a rapidly growing population typical of early demographic transition stages.
Question 40Population and Economic Activity
Which of the following is the best example of an activity belonging to the informal sector in a developing economy?
- A teacher in a government-funded college
- A clerk employed by a state-owned bank
- A technician working in a licensed textile mill
- A street vendor selling vegetables without registration Correct answer.
Explanation
The informal sector consists of unregistered, unregulated economic activity outside official payroll and tax systems, such as street vending. Workers here lack formal contracts, social security and recorded wages. Registered banks, licensed mills and government colleges all belong to the formal sector.
Question 41Population and Economic Activity
Which term describes the movement of people out of a region or country?
- Immigration
- Urbanisation
- Emigration Correct answer.
- Circulation
Explanation
Emigration refers to people leaving a place to settle elsewhere, viewed from the origin area. Immigration is the corresponding inflow viewed from the destination. Circulation means temporary, repeated movement without permanent change of residence, and urbanisation is the growth of urban population share.
Question 42Population and Economic Activity
Population density is calculated by dividing total population by which quantity?
- The total land area of the area Correct answer.
- The number of workers in the area
- The number of households in the area
- The total national income of the area
Explanation
Population density expresses how many people live per unit of land area, usually persons per square kilometre. It is obtained by dividing total population by total area. This makes it a useful but crude measure, since it ignores uneven distribution within the region.
Question 43Population and Economic Activity
A region's population pyramid has a very broad base and narrow top. What does this shape most strongly indicate?
- A youthful population with high fertility Correct answer.
- A stationary population with zero growth
- A population dominated by working-age immigrants
- An ageing population with low fertility
Explanation
A broad base means a large proportion of children, reflecting high birth rates, while the narrow top shows few elderly people because of shorter life expectancy. This expansive pyramid is typical of developing economies in an early stage of demographic transition. It implies future growth as the young cohort reaches working age.
Question 44Population and Economic Activity
Which combination of conditions is most characteristic of the demographic transition model's third stage?
- Rising birth rate and rising death rate
- High birth rate and high death rate
- Falling birth rate and low death rate Correct answer.
- Low birth rate and slightly rising death rate
Explanation
In stage three, death rates have already fallen to low levels owing to better medicine and sanitation, while birth rates begin to decline as families choose smaller sizes. The result is a narrowing gap and slowing population growth. Stage one has both rates high, and stage four has both low.
Question 45Population and Economic Activity
Why does the secondary sector typically absorb surplus labour as an economy develops?
- Because services always decline during industrialisation
- Because the primary sector expands faster than manufacturing
- Because rising agricultural productivity releases workers while factories offer higher wages Correct answer.
- Because manufacturing requires no capital investment
Explanation
Improved farm productivity means fewer workers are needed to feed the population, so rural labour is released. Factories creating manufactured goods offer steadier and higher wages, drawing that labour into industry. This shift from primary to secondary employment is a core feature of industrialisation.
Question 46Population and Economic Activity
A country's population grows at 2 percent per year while its food production grows at 1 percent per year. Which conclusion follows most directly?
- The country will certainly become a net food exporter
- Food supply per person is likely to fall unless imports or yields improve Correct answer.
- Population growth has no effect on food adequacy
- Food supply per person will rise steadily
Explanation
When population grows faster than food output, per capita food availability declines even though total output is rising. This creates pressure to raise yields, import food or slow population growth. The comparison of growth rates, not absolute totals, determines the per capita trend.
Question 47Population and Economic Activity
Which occupational structure is most typical of a highly developed economy?
- Primary sector dominant, secondary sector small
- Secondary sector dominant, primary sector large
- Primary and secondary sectors small, tertiary sector dominant Correct answer.
- Primary sector dominant, tertiary sector small
Explanation
In advanced economies mechanisation reduces farm employment and manufacturing becomes capital-intensive, so most workers move into services. The tertiary sector, covering trade, health, education, finance and transport, then employs the majority. This pattern is often called the shift to a service economy.
Question 48Population and Economic Activity
Which factor is a push factor in rural-to-urban migration?
- Land fragmentation and low farm incomes in the village Correct answer.
- Better schools and hospitals in the city
- Availability of entertainment in towns
- Higher urban wages in factories
Explanation
Push factors are negative conditions at the origin that encourage people to leave, such as low agricultural income, land fragmentation or environmental stress. Pull factors are attractions at the destination, including jobs, services and amenities. Distinguishing the two clarifies why migration streams form.
Question 49Population and Economic Activity
What does the human development index combine to measure?
- Birth rate, death rate and migration rate
- Industrial output, exports and imports
- Population size, land area and rainfall
- Income per capita, life expectancy and education Correct answer.
Explanation
The human development index is a composite of three dimensions: a decent standard of living measured by income, a long and healthy life measured by life expectancy, and knowledge measured by schooling. It gives a broader view of development than income alone. This matters because high income does not guarantee good health or education.
Question 50Population and Economic Activity
A densely populated region has few natural resources but high per capita income. Which explanation is most consistent with economic geography?
- Resource scarcity always causes poverty
- Density alone guarantees prosperity
- Human capital, trade and service activities can substitute for local resources Correct answer.
- Per capita income cannot exceed resource availability
Explanation
Economic geography shows that prosperity depends on how resources are combined, not only on local endowment. Regions with skilled labour, good transport and strong service or trading sectors can generate high income through exchange. Japan is a classic illustration of a resource-poor but high-income economy.