Economics Worksheet: Geography and Economic Decision-Making

Geography Word Problems

Grade 12 Economics Geography Word Problems Advanced 5 Questions 9 Views

Classroom Worksheet

Economics Worksheet: Geography and Economic Decision-Making

Geography Word Problems

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Grade: Grade 12

Subject: Economics

Topic: Geography

Time: 20 Minutes

Difficulty: Advanced

Questions: 5

Instructions:
Read each word problem carefully. Show your reasoning clearly and use complete sentences where appropriate. Answer all five questions. Assume all figures are in the same currency unless stated otherwise.

Skills Practiced:

Geography
Economics
Critical Thinking
Problem Solving

1Question

A coastal town has a port that handles 240,000 containers per year. Because of its geography, it serves as the main export route for nearby farms and factories. If 35% of the containers are agricultural products and 20% are manufactured goods, how many containers are agricultural products, and how many are manufactured goods?

2Question

A mining company is choosing between two locations. Site A is 120 km from a seaport and has transport costs of 9 per ton per 10 km. Site B is 180 km from the seaport but has transport costs of 6 per ton per 10 km. If the company ships 50,000 tons per year, what is the annual transport cost at each site, and which site is cheaper?

3Question

A country is considering building a new highway through a mountainous region to connect two cities. The project is expected to increase trade by 8% in City X and 12% in City Y. City X currently produces goods worth 2.5 billion, and City Y produces goods worth 1.8 billion. What is the combined increase in output value after the highway is completed?

4Question

A river basin supports farming, hydropower, and tourism. A regional government estimates that every 1 million invested in irrigation infrastructure increases farm income by 1.6 million, while every 1 million invested in flood control prevents 2.4 million in potential losses. If the government invests 15 million in irrigation and 10 million in flood control, what is the total economic benefit?

5Question

A coastal manufacturing region is deciding whether to expand inland or remain near the port. If it stays near the port, it earns an annual revenue of 900 million, but congestion costs reduce profits by 14%. If it moves inland, revenue falls by 7% because of longer shipping times, but profits rise by 10% due to lower land and labor costs. Assume current profit margin is 18% of revenue in both cases before these changes. Which option gives the higher annual profit, and by how much?

Answer Key

#	Answer
1	Agricultural products: 84,000 containers. Manufactured goods: 48,000 containers.
2	Site A: 120 km ÷ 10 = 12 units; 12 × 9 = 108 per ton; 108 × 50,000 = 5,400,000 per year. Site B: 180 km ÷ 10 = 18 units; 18 × 6 = 108 per ton; 108 × 50,000 = 5,400,000 per year. The annual transport cost is the same for both sites.
3	City X increase: 8% of 2.5 billion = 0.2 billion. City Y increase: 12% of 1.8 billion = 0.216 billion. Combined increase = 0.416 billion, or 416 million.
4	Irrigation benefit: 15 × 1.6 = 24 million. Flood control benefit: 10 × 2.4 = 24 million. Total economic benefit = 48 million.
5	Stay near the port: profit before congestion = 18% of 900 million = 162 million. After 14% congestion costs, profit = 162 × 0.86 = 139.32 million. Move inland: revenue = 900 × 0.93 = 837 million. Profit before added savings = 18% of 837 = 150.66 million. With 10% profit rise from lower costs, profit = 150.66 × 1.10 = 165.726 million. Moving inland gives the higher annual profit by 165.726 - 139.32 = 26.406 million, or about 26.4 million.