Advanced Placement (AP) Human Geography Practice Exam

What does the concept of agglomeration refer to in economic geography?

1. The separation of industries in urban planning

2. The clustering of businesses for mutual benefit

3. The globalization of services

4. The dispersal of resources across regions

The correct answer is: The clustering of businesses for mutual benefit

Agglomeration in economic geography refers to the clustering of businesses and industries in a particular area to maximize mutual benefits. This phenomenon occurs because businesses can share resources, such as workforce and infrastructure, and benefit from proximity to suppliers, customers, and competitors. As firms congregate in specific locations, they create a synergy that enhances efficiency and innovation. This concentration can lead to reduced transport costs and the sharing of knowledge and technologies among businesses, fostering greater economic interactions and growth. Urban areas, for instance, often see various industries agglomerate to capitalize on these advantages, creating vibrant economic hubs where businesses can thrive. The other choices do not capture the essence of agglomeration. For example, the separation of industries would imply dispersal rather than clustering, and the globalization of services focuses more on the geographic and economic impact of globalization rather than the local benefits of business proximity. Similarly, the dispersal of resources across regions suggests a distribution model that contrasts sharply with the concept of agglomeration, which emphasizes concentration instead.