5. Please choose ONE answer from the four options (labelled a to d) as below for each question in this section. Fill the appropriate bubbles with 2B pencils on form FAS-1. Only answers on form FAS-1 will be marked, i.e. answers in the question book do not count. Each correct answer is worth 2 marks. 3. 1. Which of the following statements about the factory city example is CORRECT? Shirts can be produced at lower costs because of agglomeration economies. If transportation costs decrease, the rims of the martini-glass graph will be shorter. (a) (b) (c) (d) 2. Which of the following statements about the port city example is CORRECT? Moving the plant from port P to input source A saves transportation costs. Moving the plant from port P to input source B saves transportation costs. Moving the plant from port P to market M saves transportation costs. Port P is the median location and therefore the optimal choice for the plant. Which of the following is the best example of localization economy? 41% of world's new ships are built at the southern tip of the Korean peninsula. Cars can be manufactured more efficiently on a modern assembly line. Steel can be produced more cheaply near a coal mine. Cities, such as Singapore and Hong Kong, are rated very highly by expatriates. (a) (b) (c) (d) (a) (b) (c) (d) (a) Factory-made shirts are always preferred to home-made shirts by consumers. The height of the stem of the martini-glass graph depends on the cost of a factory shirt. Which of the following statements about the "circuses and urban primacy example is WRONG? The utility curve of city S remains unchanged even after free circuses are offered in R. (b) The utility curve of city R shifts upward after free circuses are offered in R. The rulers of the empire live in city R. (d) The rulers of the empire live in city S. (c) Suppose that Rank-Size Rule holds perfectly for a country. If the 100 largest city has 5,000 people, what is the population size of the 20th largest city? (a) 1 million. (b) 500,000. (c) 25,000. (d) Unknown.