Economic Geography unit 3

why it is so difficult to measure and analyze the economic output of services using an example (like doctor, lawyer, teacher, etc.)

services are intangible, experience is unique per person

what complications arise from the way the U.S. government accounts for the service sector in its analysis of employment (think about the example of the janitor working in a Ford automobile plant)

The U.S. generally classifies employment based on the industry of the employer rather than the specific work an employee performs, leading to dfferences in pay

what is the percentage of the labor force that currently works in services in the United States; know the approximate percentage of new jobs created that are service sector jobs

80%

what do we mean when we say demand for services is income-elastic

as people’s income increases, they spend more on services

what is the main reason why demand for health services is rising in the developed world

the aging population

how have governments contributed to the growth of services; know the single largest employer in the United States

Expanding public services, the government(federal, local) is the biggest employer

how does a city like Las Vegas “exports” services

by attracting tourists from other cities to spend money on hotels, restaurants, etc.

what are the qualities of firms that would be most likely to engage in externalization of services

large firms outsource services to less developed countries to save money

what is the degree of labor intensity that is typical of most service industries, as well as providing a reason WHY that is the case

Most service industries are highly labor-intensive. The main reason is many services require direct human interaction, and personal attention, making it difficult to automate.

What is the nature of income distribution that we have associated with the rise of service sector employment and how it contrasts with the income distribution typical of a manufacturing-based economy

service based economies are more commonly going to have unequal, hourglass shaped income distribution. Manufacturing-based economies are more likely to have a more balanced, diamond shaped distribution with bigger middle class

describe the qualities that define a “McJob”

low paying, low skilled service sector job that offers limited benefits, poor job security, and few opportunities for career advancement

define “pink-collar job”; know which SPECIFIC group of women have seen the highest rates of entry into the workforce post-WWII

pink collar jobs are traditionally associated with women. Usually involving caregiving, education, administration work, or customer service. Nurses, receptionists, secretaries
mostly given to married women with children

what service sector industry has become a concern (and expense) as women with children have entered the workforce

Childcare/daycare industry has become a concern because as more mothers start working, there is a high cost and availability concern

characterize the nature of unionization in most service industries

there are low rates of unionization as there is high employee turnover, irregular schedules, which makes it difficult to unionize

what is the main reason why demand for educational services is rising in the developed world

workers require higher education to compete in the modern service based economies

Be able to generally explain how employment rates and wage levels differ, on

average, between those with higher levels of education versus those with lower levels

of education

Know which industry is the largest component of the financial service sector

Know some of the types of services investment banking institutions provide

Know which financial industry involves the commodification of risk

Be able to briefly explain why finance is more highly regulated than most industries

Know what aspect of deregulation led to the rise of the “banking giants”, which

comprise only 2% of all banks, but control 50% of all bank assets

Be able to briefly explain why the accounting industry became one of the most

important professions in advanced capitalist economies

Be able to explain why there is such a high degree of agglomeration between legal

services and the firms they represent

Know some of the factors that are important to examine when looking at the

distribution of consumer services (there is a BIG one, but there are also numerous

others on those slides that are important to look at as well)

Be able to explain the transportation innovations that led to the growth of tourism

(one after WWI, and one after WWII)

Be able to differentiate between site and situation

Know what type of transportation was very important for the fate of many towns in

the 1800s

Know the FIRST invention, introduced in Richmond, VA in 1888, that transformed

the structure of citie

Know the two major canals that exemplify the value water transportation still has

and the shortcuts they create

Be able to define distance decay

Be able to explain the concept of time-space convergence (or time-space

compression)

Be able to explain the concept of cost-space convergence (or cost-space compression)

Be able to explain some of the complications that even developing countries with

dense road networks can experience with transportation (think of the India

example)

Be able to explain what tap routes are

Be able to differentiate between terminal costs and line-haul costs; be able to

provide an example of each type

Be able to describe the nature of hub-and-spoke networks as they are utilized by the

airline industry, especially the main reason why they are used by the airline

industry

Know what 3 factors account for U.S. personal mobility by automobile being at its

highest point in history

Know what invention finally divorced communication from the speed of

transportation method

Know the differences between satellite and fiber-optic communication in terms of

density of areas, security issues, and which one is suitable for point-point or point-

area

Know what measure of standard of living is seen as key to enabling Internet access

Be able to briefly explain how the Internet has changed the RANGE of our positions

and our voices about issues

Be able to explain the concept of “communities without propinquity” as it relates to

the Internet

Be able to provide a couple of examples of urban specialization of production; know

what sort of products small towns usually specialize in

Be able to define economic base

Be able to differentiate between the basic sector and non-basic sector

Be able to briefly describe the 3 parts to the changes that can reverberate through a

local economy when the basic sector expands -or- contracts according to the

economic base model

Be able to explain where firms tend to agglomerate in the cities (we used a

particular term, often abbreviated, for this area of a city); be able to give the main

reason why land in this area is so expensive

Be able to explain the general difference between the Residential Location Decisions

of poor families and wealthier families by focusing on WHY they live where they

live

Know the underlying principle upon which the Filtering Model of Housing is based

upon

Be able to provide some of the demand factors associated with housing

Be able to describe the general qualities of those who suburbanized first in the late

1800s versus those who remained in the central city

Know the six factors that reinforced suburban sprawl after World War II, along

with the mass adoption of the automobile

be able to briefly explain why building roads and water infrastructure is much

more expensive in the suburbs than in the central cities

Be able to define gentrification and explain the general nature and some of the

criticisms of it in terms of who it has harmed