urban economics o’ sullivan chapter 1 – Flashcards
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Urban Area
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a geographical area that contains a large number of different kinds of economic agents.
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municipality
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a political unit smaller than a county that is incorporated and provides certain services to people within it's geographical limits.
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"Perfect Mobility" Models
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Models that develop understanding of long term changes in urbanization by assuming that workers are perfectly mobile long term, but not in the short term.
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First Axiom of Urban Economics
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Prices adjust to reach locational equilibrium
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Location Equilibrium
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condition under which prices to live in a location create no incentive to move.
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Second Axiom of Urban Economics
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Self-Reinforcing Effects Generate Extreme Outcomes
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Third Axiom of Urban Economics
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Externalities cause inefficiency.
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Fourth Axiom of Urban Economics
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Production is subject to economies of scale.
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Fifth Axiom of Urban Economics
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Competition generates zero economic profit.
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Opportunity Cost
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The opportunity cost is the value of the next best use of something, such as time or an input, when that thing is used for its most valuable outcome
