What is an example of the multiplier effect in AP Human Geography?
An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ workers and their suppliers, as well as those who work in the factory.
What is a regional multiplier AP Human Geography?
Regional multiplier. the stimulation of economic growth by growth itself. Only $47.88/year. Non basic industry. producing goods or services for sale within the local region.
What is the least cost theory AP Human Geography?
Weber’s Least Cost Theory attempts to describe and predict the location of manufacturing industries based on three factors: transportation costs, labor cost, and the benefit of agglomeration (clustering with similar, interdependent businesses).
What is the basic non basic ratio AP Human Geography?
ratio between workers employed in the basic sector and those employed in the nonbasic sector. basic, nonbasic sectors. Basic sector of a local economy includes any industry that brings in money from outside the area.
What is the multiplier effect simple definition?
The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.
What is the multiplier effect in geography?
Multiplier Effect: the ‘snowballing’ of economic activity. e.g. If new jobs are created, people who take them have money to spend in the shops, which means that more shop workers are needed.
What is offshoring AP Human Geography?
offshoring. The practice of exporting U.S. jobs to lower paid employees in other nations. outsourcing.
What is PPP in human geography?
Purchasing power Parity (PPP) is the amount of money needed in one country to purchase the same goods and services in another country; PPP adjust income figures to account for differences among countries in the costs of goods.
What is decolonization AP Human Geography?
Decolonization. the action of changing from colonial to independent status. Definitional boundary dispute. Conflict over the language of the border agreement in a treaty or boundary contract.
What is the definition of the multiplier effect?
multiplier effect An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.
How is the multiplier effect related to cumulative causation?
Multiplier Effect or Cumulative Causation The introduction of a new industry or the expansion of an existing industry in an area also encourages growth in other industrial sectors. This is known as the multiplier effect which in its simplest form is how many times money spent circulates through a country’s economy.
How is the marginal propensity to consume related to the multiplier effect?
The marginal propensity to consume is a crucial part of the multiplier effect formula. If people are likely to spend the money coming in, the multiplier will be higher. The money will be spent at a much faster rate – thereby stimulating the economy.
What’s the difference between a low and high multiplier?
A low multiplier means that any government investment has little impact on the economy as the money is not circulating and stimulating activity. By contrast, a high multiplier means people are spending most of the money they receive, which stimulates other economic activities associated with what they are purchasing.