REGIONAL ECONOMICS FINAL EXAM

PART A: Answer any 5 of the questions A.1 – A.7. Do not answer additional questions. This part is worth 15% of the exam. Answers in this part will range in length between one word to three sentences.

Briefly define and give a specific example of:

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A.1. Regression analysis
A.2. R2
A.3. Adjusted R2
A.4. t statistic
A.5. dummy variable
A.6. hedonic regression
A.7. logarithmic transformation

PART B: Answer all 3 of the questions B.1 – B.3. This part is worth 30% of the exam. will be short answer essays. Answers in this part will range in length between three to seven sentences.

B.1. Explain how each of the following affects the bid-rent function/size of the city.

•Increase P
•Increase w
•Increase k
•Increase t
•Increase a

See Figure 1

B.2. According to Census Journey to Work data, which three counties are top destinations for commuters from Santa Clara County – not including Santa Clara County? Please list in order and list the estimated commuters based on 2011-2015 5-Year ACS Commuting Flows.

B.3. Describe two kinds of scale economies. What different implications do the two kinds of scale economies have for regional economic development?

PART C: Answer question C.1. This part is worth 55% of the exam. will be a longer essay. Answers in this part will range in length between five to seven paragraphs.

C.1. Describe the central economic concept you addressed in your term project and what insight it gave you on the basic policy issue addressed in the reading you reported on.

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