ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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.

Detailed explanation-3: -The next important aspect of the central place theory is range. Range is the furthest distance people, specifically consumers, will travel to purchase goods or obtain services. Putting these two together, threshold and range work together to create the market area.

Detailed explanation-4: -Three types of services are consumer, business, and public. Jobs are growing in the service sector rather than in agriculture and industry. In North America, three-quarters of employees work in the service sector. There are three types of services: consumer services, business services, and public services.