Quiz 5: Market Determinants of Value


We know that we need to list five major economic base activities for our city of residence. Economic base activities include those economic generators of income for our city that derive income from both local and non-local sources of business. The answer may vary according to person's location; however considering my city, the top five major base activities include the following: 1. Transportation options are a large compelling factor in the economic growth of my city. My city is situated on the coast with a sheltered harbor. This geographic layout has served to provide a safe place for ships and ocean-faring vessels to dock, convey trade and make repairs. 2. Another compelling factor is the availability of natural resources. Near my city many crops are grown for sale to the greater marketplace of my country. Tobacco and cotton are agriculture-based economic growth factors. 3. My city lies at the crossroads to major highways that lead to other parts of the country. The location of the city has provided growth opportunities in industries such as trade and commerce, and education. Several post-secondary institutions have been built and research facilities have also been built to accommodate needs of industry and education. 4. The large population of my city and low business taxes has also attracted the manufacturing industry. Several assembly and manufacturing warehouses have been built and employ a large portion of the local population. The manufacturers have also opened stores in the city center and since there is little competition from other manufacturers, the industry keeps local money spent on local products. The companies also export to other locations around the country and world, so those export dollars are brought into the community. 5. My city has a high-multiplier for our economic base activity. We have a large tourism trade that brings money into the community. Tourism is another major employer for our city. While some of the mom-and-pop stores have made a living from selling t-shirts and tchotchkes, there has been leakage due to inexpensive items made in places like China.

Economic activity brings people together. Traveling to and from the locations of production or exchange requires time and cost. Human settlement has long tended to cluster so that people can gather more quickly and efficiently. The "Gravity" that draws economic activity into clusters is the demand for access. Therefore the answer is c Demand for access or proximity

We know that we need to find the historical population figures for our community for the 20 th century. We will create a chart with 10-year intervals and then determine the most rapid periods of growth. From this information we will try to discover what caused them supplementing our information from the U.S. Census Data Finders column at www.census.gov. Since the information is based on person's state, person's information may vary. For the purpose of providing an example we will use the State of Florida, Orange County information. We notice that although we may have chosen a city to research, the State of Florida has their Census information listed by county only. See Table 1 for Orange County population as taken from the U.S. Census Bureau. Table 1 img Source: www.census.gov The major increase that occurred between the decades 1950 to 1960 when the population more than doubled was due in part to the construction on the Walt Disney World Complex. The opportunity for work in a State with no income tax and no snow brought people to Central Florida. One reason for the continuous growth since the opening of the Walt Disney World Complex is the favorable weather conditions. Tourism has become one of the leading income generators and economic base activities that have helped to support Orange County and the surrounding counties. People have been moving to Florida for decades because the climate is tolerable and lends itself to year-round employment in many fields that include construction. After Interstate-4 was built, commerce was more easily performed. Not only could business be performed via the immediately accessible waterways of the Atlantic and the Gulf of New Mexico that led to the Mississippi, products could be exported across the state and the rest of the country via new roadways.