Instructions

•        You must write on each of the following questions. One blue book should be adequate, but you may use up to two (2) blue books. You have been required to bring at least one blue book to class on exam day without any markings, including your name. The blue books will be collected at the start of the exam period, mixed up, and then redistributed. Use only the blue books that have been distributed in class with my mark on them.

•       Each question has equal weight.

Question 1:

Demonstrate, derive and prove the following:

a)      land values decline with increasing distance from a central node.

b)      population density declines with increasing distance from a central node.

c)      composite good consumption declines with increasing distance from a central node.

Question 2:

Ø      Part A: Derive the direct effects for an increase in household income.

Ø      Part B: Using the results from Part A, derive the indirect effects within an OPEN city for an increase in household income. Show in your proof the effect upon land values, population density, urban radius, composite good consumption, and total population.

Question 3:

      List and explain each of the three methods we use to define the boundary of the city?

      Define and explain an open city. Define and explain a closed city.

      Define and explain what is spatial equilibrium?

Question 4:

Land economics is a subdiscipline of more general social sciences - including human geography, real estate, economics, urban planning, political science, sociology, and so on) and has its intellectual origins at least back to the 1700s. Discuss and provide a short commentary on the evolution of "land economics" thought, specifically how the primary thinkers proposed what determines land value (land rent) and land use.