Answer to Question #206946 in Geography for loren kieth

Question

imagine that tesla is considering opening a new car factory in hamilton that will employ people if the city of hamilton is willing to give them 25 million to do so. define and apply the concepts of basic and non basic jobs to this scenario. demonstrate how the multiplier effect would apply here and how many total jobs would he created. why would some people support this idea? why would some people be opposed?

Answer 1

With regards to multiplier effect, the injection of such funds will increase the money supply leading to growth of other areas of hammilton's economy. For instance, places where materials will be bought, this money will serve as income that translate to growth and employment opportunities. Some will support this idea since, the establishment of the company will not only open up other sectors but also boost infastractural growth. Some may be opposed to this because of the expenses and the idea that petrol using cars may be cheaper than electric cars.