Question

Read the passage and answer the question:
"Agglomeration economies differ between habitations of different sizes. Market towns generate scale economies in marketing and distribution of agricultural inputs and outputs. Medium-sized cities present localisation economies linked to specialisation. Larger cities create urbanisation economies due to diversity, leading to innovation. Metropolitan city regions offer the benefits of localisation, urbanisation and networking. They represent a mass of interconnected economic activities, typically characterised by high productivity due to jointly-generated and mutually-reinforcing agglomeration economies. These regions act as innovators of products, processes and techniques. They drive regional and national economic growth. As gateways to national and international economies, they are exposed to powerful forces of globalization, including transportation, communication and information technologies. Metropolitan city regions around the globe engage in economic activities that are increasingly structured on national and international planes. Population densities in these regions are high.''
According to the passage, agglomeration economies differ due to?

• A. sizes of the population
• B. the literacy rate
• C. the policies of government
• D. taxes levied

Hint:

When answering questions about a passage, focus on the exact phrasing of the text to identify the key factor, and avoid options that introduce unrelated concepts.

Answer 1

The Correct Option is A

Step 1: Locate the relevant information in the passage. The passage states, "Agglomeration economies differ between habitations of different sizes," indicating that the differences in agglomeration economies are tied to the sizes of habitations.
Step 2: Relate habitation size to the options. Habitation size is directly connected to the population size, as larger habitations (like metropolitan city regions) have higher population densities, as noted in the passage ("Population densities in these regions are high").
Step 3: Evaluate the options. Option A (sizes of the population) aligns with the passage's emphasis on habitation size. Options B (literacy rate), C (policies of government), and D (taxes levied) are not mentioned as factors influencing agglomeration economies. Thus, the correct answer is A.