California Economy

Which feature gives Los Angeles economic advantages as a large metropolitan area?

• Absence of transport networks
• Isolation from international markets
• A large diversified labor market and extensive trade infrastructure
• Dependence on one employer

How does the Bay Area connect to the global economy?

• Through technology, finance, capital, and innovation networks
• Only through tourism
• It has no global economic links.
• Only through agriculture

How can diversification improve California’s economic resilience?

• Every industry must rise or fall together.
• Diversification removes all recessions.
• Weakness in one sector may be partly offset by strength in others.
• A diversified economy has only one industry.

How does San Diego’s location influence its economy?

• It isolates the city from trade.
• It places San Diego next to Canada.
• Its proximity to Mexico supports cross-border trade and labor connections.
• It prevents international business.

Which concept helps explain why technology firms cluster in Silicon Valley?

• Comparative isolation
• Subsistence farming
• Agglomeration economies
• Political secession

How can a large specialized labor market reinforce an industry cluster?

• It attracts firms that need workers with those skills.
• It prevents employers from hiring.
• It forces all firms to relocate.
• It removes specialized knowledge.