What economic impact would the closing of a nearby military base have on a town? Would people and businesses that did not directly deal with the military personnel be affected?
What will be an ideal response?
Through the multiplier effect, the closing of the military base would have a large effect on the town. The businesses that sold directly to the military personnel would lose sales, resulting in declining profits and layoffs. With less income, these business owners and workers would buy less goods and services from other businesses in town, which would drop the income of the owners and workers in the other businesses. With less income, they would also decrease their spending and the multiplier effect would spread through the town.
You might also like to view...
Applying the idea of time inconsistency, we can say that, in general, a person's "future-oriented self":
A. has the same objectives as the person’s present-oriented self, but articulates them differently. B. tends to choose healthier options, whereas the present-oriented self gives into temptation more easily. C. is less rational in decision-making, because that self rarely matches actual behavior. D. is more rational in decision-making, because its choices are generally healthier or more altruistic.
Public goods are both rival and nonexclusive
a. True b. False
___________________________—a term referring to the process of enacting laws that protect individual and entity rights to use their property as they see fit.
a. Property rights b. Rule of law c. Contractual rights d. Compliance rights
What does intra-industry trade create for the consumer?
a. greater variety of goods and lower costs b. greater variety of goods and higher costs c. lower variety of goods and lower costs d. lower variety of goods and higher costs