In Core-Periphery urban geography, which area concentrates economic activity and wealth?

• A. The Suburbs
• B. The Core
• C. The Rural Fringe
• D. The Periphery

Answer: (B)

In the Core-Periphery model, economic activity and wealth are concentrated in the central area where the city’s activities cluster. This core draws firms together to benefit from agglomeration—sharing markets, suppliers, labor pools, and advanced institutions like financial services and government services. That concentration fuels higher productivity, more investment, and higher incomes, which in turn attracts even more business and talent to the center. Surrounding areas like the suburbs tend to be more residential and rely on the core for many jobs and services, while the rural fringe and the outer periphery have less overall economic activity and wealth. So the central area is the one that concentrates economic activity and wealth.