economics

ANSWER ALL THESE SHORT ESSAY QUESTIONS. BE CLEAR. MINIMUM WORDS: 250. MAXIMUM WORDS: 400. SINGLE SPACE.

     1.         Using the concepts underlying the Bid Rent Function, and the role of commuting costs and housing prices, explain tailgating patterns at a typical FSU home football game in Tallahassee.

     2.         Using the production possibilities frontier and/or pareto optimality, evaluate how trade benefits the Tallahassee regional economy. How might this be different from Orlando? (10 points)

     3.         Policymakers in Mumbai and local business leaders believe the city’s urban slums are a blight and should be bulldozed because they are inefficient, disorderly, and unproductive. Evaluate this observation within the context of the concepts and material discussed in class.

     4.         Tallahassee has experienced a resurgence of agricultural production on edge of the city. Many believe this growth is due to rising demand from city dwellers. What does this suggest about the city’s urban form using the Bid Rent Function.

     5.         Local policymakers are encouraging urban growth and development. If Tallahassee is successful in encouraging growth, including revitalizing the downtown area, what are the implications for the rate of change in housing prices closer into the city compared to the outer edges of the city based on the Bid Rent Function?

     6.         Why is the capitalization rate important in the housing market? How would lower expected rents in the housing market influence the capitalization rate and what would you expect to happen to investment in the housing market?

     7.         Elected officials in the state legislature are supporting legislation that subsidizes the entertainment industry, specifically film and sports stadiums, because they promote economic growth for cities. Evaluate this claim if the employment multipliers for the sports entertainment, higher education, and aerospace industries are 1.5, 2.3, and 5.0 respectively.