ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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threshold
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least cost theory
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range
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relative theory
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Detailed explanation-1: -The determining factor in the location of any central place is the threshold, which comprises the smallest market area necessary for the goods and services to be economically viable.
Detailed explanation-2: -Threshold is the minimum market (population or income) needed to bring about the selling of a particular good or service. Range is the maximum distance consumers are prepared to travel to acquire goods-at some point the cost or inconvenience will outweigh the need for the good.
Detailed explanation-3: -Central place. Explanation: The “central place theory” states that in any given region there can only be one large central city, which is surrounded by a series of smaller cities, towns, and hamlets.
Detailed explanation-4: -Principles in the Arrangement of the Central Places Christaller’s theory gives THREE principles which are the marketing principle, transport principle and administrative principle for orderly arrangements and the formation of hierarchy.