AP Human Geography : Economic Restructuring

Study concepts, example questions & explanations for AP Human Geography

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Example Questions

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Example Question #1 : Economic Restructuring

The shift in major urban areas moving from an economy based on industry to one based on a service-sector economy is known as __________.

Possible Answers:

commercial diversification

imbalanced development

economic restructuring

scientific management

industrial privatization

Correct answer:

economic restructuring

Explanation:

Economic restructuring is a phenomenon that has accelerated in the last part of the twentieth century and into the twenty-first century. Economic restructuring is the process in which economies move from a blue-collar industrial base, especially around heavy industry and factories, into more of a white-collar service sector. This process is typical in most major American cities, which has produced a thinner middle class and more menial jobs.

Example Question #1 : Economic Restructuring

Which of the following American regions is incorrectly matched with its specialty?

Possible Answers:

Kansas and farming

New York City and finance

Texas and energy

Los Angeles and entertainment

Hartford and tourism

Correct answer:

Hartford and tourism

Explanation:

All of the American regions are correctly matched with their regional economic specialties except Hartford. Hartford is a city in Connecticut and has an extremely high concentration of insurance industries. It is not known for tourism.

Example Question #3 : Economic Restructuring

In the 1990s, many economists thought that E-commerce was going to eliminate __________.

Possible Answers:

the law of retail gravitation

brick and mortar businesses

the retail industry

the effects of globalization

the manufacturing industry

Correct answer:

brick and mortar businesses

Explanation:

E-commerce was the name given to any sales-related business conducted over the internet. When it first exploded in the 1990s, many economists expected E-commerce to completely eliminate and replace the business generated by actual in-person shops. These in-person shops are referred to as “brick and mortar businesses.” Instead, E-commerce has become an option available to consumers but not a replacement of traditional brick and mortar businesses.

Example Question #4 : Economic Restructuring

In which decade did E-commerce first emerge?

Possible Answers:

2000s

1970s

1980s

2010s

1990s

Correct answer:

1990s

Explanation:

“E-commerce” refers to the use of the internet to sell goods and services that would traditionally have required going to an actual store. It began in the 1990s as the internet exploded into existence all around the developed world. Many prognosticators at the time predicted that E-commerce would completely replace actual stores in a very short space of time, however that has not been the case. Instead we have seen an integration of E-commerce into the existing economy - where some things are bought online and some things are bought in person.

Example Question #5 : Economic Restructuring

What name is given to a company that is comprised of many smaller firms who all specialize in one aspect of the company's product development or sale?

Possible Answers:

Cottage companies

Transnational corporations

Multinational corporations

Conglomerate corporations

Joint-stock companies

Correct answer:

Conglomerate corporations

Explanation:

A “conglomerate corporation” is a company that is comprised of many smaller firms who all specialize in various aspects of the company’s product development and sale. So a large corporation might have different firms responsible for harvesting raw materials, manufacturing products for sale, transporting products to different markets, advertising and marketing, and so on. In the twenty-first century almost all major corporations are “conglomerate corporations.”

Example Question #1 : Economic Restructuring

In the second half of the twentieth century most of the major corporations of the world transitioned their manufacturing centers from __________ to __________.

Possible Answers:

Europe . . . the Americas

the Americas . . . Africa and Asia

Europe . . . Africa and Asia

the developing world . . . the developed world

the developed world . . . the developing world

Correct answer:

the developed world . . . the developing world

Explanation:

In the second half of the twentieth century most of the major corporations of the world transitioned their manufacturing centers from the developed world (countries like the United Kingdom, Germany, and the United States of America) to the developing world (countries like India, Mexico, and Brazil). The primary reason behind this is because it is extremely cost effective for the companies- they have access to much cheaper labor and, often, lower tax rates and other benefits. The consequences of this movement are still being felt and understood, but it has involved the transition of the national economies of much of the world.

Example Question #1 : Economic Restructuring

What name is given to the process of transferring service-based jobs to other countries?

Possible Answers:

Migrating

Agglomeration

Outsourcing

Fundraising

Deglomeration

Correct answer:

Outsourcing

Explanation:

It has become common in recent years for companies to transfer service-based jobs, particular call centers, to other countries. This is called “outsourcing.” This is generally done because the company knows it can save money by paying the outsourced workers a lower wage to do the same job.

Example Question #8 : Economic Restructuring

All of the following are tertiary economic activities except __________.

Possible Answers:

office work

shopkeeping

agriculture

teaching

Correct answer:

agriculture

Explanation:

Tertiary economic activities are activities in the service sector. Agriculture is a primary economic activity, focusing on use of natural resources.

Example Question #9 : Economic Restructuring

In a bulk-reducing industry, the inputs weigh more than the final product. Which of these statements is true about bulk-reducing industries and how they try to offset the costs related to product inputs?

Possible Answers:

Bulk-reducing industries have greater profits because they generally only sell to large-scale distributors.

The prices of the final products are greatly inflated to offset the costs related to the product inputs.

These industries will generally be located near the source of inputs in order to minimize transportation costs.

To minimize transportation costs, these industries are generally located near where the final product will be sold.

Labor costs are minimized in bulk-reducing industries because of the extensive use of machinery.

Correct answer:

These industries will generally be located near the source of inputs in order to minimize transportation costs.

Explanation:

Since the inputs weigh more than the final products, and transportation is generally more expensive for heavier things, the bulk-reducing industries locate themselves near their inputs in order to pay less for the transportation of heavier items.

Example Question #10 : Economic Restructuring

Why is longer-distance transportation cheaper per kilometer?

Possible Answers:

Companies pay for the labor of loading and unloading goods from vehicles, and this cost is usually the same no matter how far the material has traveled.

The cost of purchasing fuel is greatly decreased if purchased in bulk.

The cost of purchasing a vehicle is the same no matter how much the material has traveled.

Longer-distance transportation is more likely to pass through a break-of-bulk point, which makes transportation easier.

Buildings farther away from urban areas are cheaper, and therefore balance out the increased costs of transporting materials.

Correct answer:

Companies pay for the labor of loading and unloading goods from vehicles, and this cost is usually the same no matter how far the material has traveled.

Explanation:

The cost of labor for loading and unloading goods from vehicles is considered a fixed cost, and this fixed cost doesn't change regardless of the distance traveled. Therefore, the longer the distance traveled, the cheaper the cost of transportation per kilometer traveled.

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