In the Kansas City, MO-KS Metropolitan Area two important firms are in trouble: 1) a large agricultural firm that produces $100 million worth of products every year and employs 2000 workers and 2) a large hotel that produces $50 million of yearly sales and employs 3000 workers. The local government has funds to subsidize and prevent the closing of only one firm. Please,explai where you assess what are the effects of closing down these firms and give a policy recommendation to the major. (Note that you will need to use the table on page 55 in the Regional Multiplier )
In the Kansas City, MO-KS Metropolitan Area two important firms are in trouble: 1) a large agricultural firm that produces $100 million worth of products every year and employs 2000 workers and 2) a large hotel that produces $50 million of yearly sales and employs 3000 workers. The local government has funds to subsidize and prevent the closing of only one firm. Please,explai where you assess what are the effects of closing down these firms and give a policy recommendation to the major. (Note that you will need to use the table on page 55 in the Regional Multiplier )
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 11RQ: What is die difference between accounting and economic profit?
Related questions
Question
2) In the Kansas City, MO-KS Metropolitan Area two important firms are in trouble: 1) a large agricultural firm that produces $100 million worth of products every year and employs 2000 workers and 2) a large hotel that produces $50 million of yearly sales and employs 3000 workers. The local government has funds to subsidize and prevent the closing of only one firm. Please,explai where you assess what are the effects of closing down these firms and give a policy recommendation to the major. (Note that you will need to use the table on page 55 in the Regional Multiplier )
![BEA_Regional_Multipliers
00
79% ✓
+
+
Mining:
|A
Coal mining
Anotar
W a Word
Construction:
Construction
Farm and agricultural services, forestry, and fishing:
Farm products and agricultural, forestry, and fishing services
Forestry and fishing products
Oil and gas extraction
Metal mining and nonmetallic minerals, except fuels
Apparel and other textile products
Paper and allied products
T| Editar
Table 2.4.-Total Multipliers for Output, Earnings, and Employment by Industry Aggregation-Continued
Kansas City, MO-KS Metropolitan Area
Final-demand multiplier
Manufacturing:
Food and kindred products and tobacco products
Textile mill products .....
[X] a Excel
Stone, clay, and glass products
Primary metal industries
Fabricated metal products
Industrial machinery and equipment
Electronic and other electric equipment
Motor vehicles and equipment
Other transportation equipment
Instruments and related products
Miscellaneous manufacturing industries
Transportation and public utilities: "
Transportation
Communications
Electric, gas, and sanitary services
Printing and publishing
Chemicals and allied products and petroleum and coal products
Rubber and miscellaneous plastics products and leather and leather products
Lumber and wood products and furniture and fixtures
Wholesale and retail trade:
Wholesale trade
Retail trade
Escanear & OCR
a PowerPoint
Finance, insurance, and real estate:
Depository and nondepository institutions and security and commodity brokers
Insurance
Real estate
Services:
Hotels and other lodging places, amusement and recreation services, and motion
pictures
Personal services
Business services
Eating and drinking places
Health services .....
Miscellaneous services
Private households
* Includes Federal Government enterprises.
1. Each entry in column 1 measures the total dollar change in output in all row industries that
results from a $1 change in output delivered to final demand by the industry corresponding to
the entry.
2. Each entry in column 2 measures the total dollar change in earnings of households employed
by all row industries that results from a $1 change in output delivered to final demand by the
industry corresponding to the entry.
3. Each entry in column 3 measures the total change in number of jobs in all row industries
Output ¹
(Dollars)
(1)
2.1363
1.7180
1.0000
1.5642
1.8199
2.2521
2.0154
1.6974
1.6512
1.7074
1.8940
1.8357
1.9662
1.9772
2.0127
2.0070
2.0087
1.9927
1.9033
1.7921
1.9214
1.8665
1.9511
2.1793
1.9948
1.6890
2.0276
2.1561
2.4879
2.6027
1.4374
↑ Exportar
2.3668
2.3700
2.3783
2.0982
2.2912
2.2065
1.3747
a Texto
2
Earnings
(Dollars)
(2)
0.6123
.3255
0
.2336
.4938
.6887
.3950
.3892
.4112
.4182
.4986
.4087
.4913
.5556
.4994
.4744
.5551
.5759
.5209
.3443
.5280
.5374
.5296
.7167
.4760
.3371
.6605
.7749
.8293
.8503
.1395
.7959
.8355
.9184
.6267
.9003
.6257
.4063
a Imagen
Employment ³
(Jobs)
(3)
42.4
20.4
0
15.3
20.2
33.3
19.0
22.8
23.9
17.1
21.3
15.1
22.3
27.3
21.3
19.2
22.5
23.7
22.5
13.0
18.7
20.9
28.4
30.4
17.2
12.7
27.5
49.3
Caducada Comprar versión completa
36.8
35.7
8.8
50.1
59.3
45.2
50.7
38.9
36.3
21.7
Direct-effect multiplier
Earnings 4
(Dollars)
(4)
2.0926
3.2339
0
1.9865
1.9398
2.2660
3.5390
2.0687
1.8517
1.9650
2.0931
2.4798
2.2264
2.0602
2.3445
2.5448
2.0880
2.0130
2.0141
2.8307
2.0030
1.8972
2.1032
2.0106
2.3372
2.3559
1.8827
1.7591
2.2942
2.4179
6.8454
2.0633
1.9482
1.8730
1.9078
1.7035
2.2868
Employmen
(Jobs)
(5)
1.680
2.393
0
1.660
2.384
2.350
4.887
1.726
1.681
2.358
2.446
4.037
2.306
2.015
2.671
3.233
2.552
2.39
2.272
4.533
2.992
2.446
1.908
2.434
3.757
3.668
2.381
1.545
2.648
2.941
3.089
1.768
1.547
1.946
1.419
1.955
1.945
that results from a $1 million change in output delivered to final demand by the industry co
responding to the entry. Because the employment multipliers are based on 1992 data, the outp
delivered to final demand should be in 1992 dollars.
4. Each entry in column 4 measures the total dollar change in earnings of households employ
by all row industries that results from a $1 change in earnings paid directly to households e
ployed by the industry corresponding to the entry.
5. Each entry in column 5 measures the total change in number of jobs in all row industri
that results from a change of one job in the industry corresponding to the entry.
||](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea459af-623a-4b11-81ab-5d969c684eb4%2Fead7910e-d865-4969-a7b2-45e40e114de2%2Fj8l5b5l_processed.png&w=3840&q=75)
Transcribed Image Text:BEA_Regional_Multipliers
00
79% ✓
+
+
Mining:
|A
Coal mining
Anotar
W a Word
Construction:
Construction
Farm and agricultural services, forestry, and fishing:
Farm products and agricultural, forestry, and fishing services
Forestry and fishing products
Oil and gas extraction
Metal mining and nonmetallic minerals, except fuels
Apparel and other textile products
Paper and allied products
T| Editar
Table 2.4.-Total Multipliers for Output, Earnings, and Employment by Industry Aggregation-Continued
Kansas City, MO-KS Metropolitan Area
Final-demand multiplier
Manufacturing:
Food and kindred products and tobacco products
Textile mill products .....
[X] a Excel
Stone, clay, and glass products
Primary metal industries
Fabricated metal products
Industrial machinery and equipment
Electronic and other electric equipment
Motor vehicles and equipment
Other transportation equipment
Instruments and related products
Miscellaneous manufacturing industries
Transportation and public utilities: "
Transportation
Communications
Electric, gas, and sanitary services
Printing and publishing
Chemicals and allied products and petroleum and coal products
Rubber and miscellaneous plastics products and leather and leather products
Lumber and wood products and furniture and fixtures
Wholesale and retail trade:
Wholesale trade
Retail trade
Escanear & OCR
a PowerPoint
Finance, insurance, and real estate:
Depository and nondepository institutions and security and commodity brokers
Insurance
Real estate
Services:
Hotels and other lodging places, amusement and recreation services, and motion
pictures
Personal services
Business services
Eating and drinking places
Health services .....
Miscellaneous services
Private households
* Includes Federal Government enterprises.
1. Each entry in column 1 measures the total dollar change in output in all row industries that
results from a $1 change in output delivered to final demand by the industry corresponding to
the entry.
2. Each entry in column 2 measures the total dollar change in earnings of households employed
by all row industries that results from a $1 change in output delivered to final demand by the
industry corresponding to the entry.
3. Each entry in column 3 measures the total change in number of jobs in all row industries
Output ¹
(Dollars)
(1)
2.1363
1.7180
1.0000
1.5642
1.8199
2.2521
2.0154
1.6974
1.6512
1.7074
1.8940
1.8357
1.9662
1.9772
2.0127
2.0070
2.0087
1.9927
1.9033
1.7921
1.9214
1.8665
1.9511
2.1793
1.9948
1.6890
2.0276
2.1561
2.4879
2.6027
1.4374
↑ Exportar
2.3668
2.3700
2.3783
2.0982
2.2912
2.2065
1.3747
a Texto
2
Earnings
(Dollars)
(2)
0.6123
.3255
0
.2336
.4938
.6887
.3950
.3892
.4112
.4182
.4986
.4087
.4913
.5556
.4994
.4744
.5551
.5759
.5209
.3443
.5280
.5374
.5296
.7167
.4760
.3371
.6605
.7749
.8293
.8503
.1395
.7959
.8355
.9184
.6267
.9003
.6257
.4063
a Imagen
Employment ³
(Jobs)
(3)
42.4
20.4
0
15.3
20.2
33.3
19.0
22.8
23.9
17.1
21.3
15.1
22.3
27.3
21.3
19.2
22.5
23.7
22.5
13.0
18.7
20.9
28.4
30.4
17.2
12.7
27.5
49.3
Caducada Comprar versión completa
36.8
35.7
8.8
50.1
59.3
45.2
50.7
38.9
36.3
21.7
Direct-effect multiplier
Earnings 4
(Dollars)
(4)
2.0926
3.2339
0
1.9865
1.9398
2.2660
3.5390
2.0687
1.8517
1.9650
2.0931
2.4798
2.2264
2.0602
2.3445
2.5448
2.0880
2.0130
2.0141
2.8307
2.0030
1.8972
2.1032
2.0106
2.3372
2.3559
1.8827
1.7591
2.2942
2.4179
6.8454
2.0633
1.9482
1.8730
1.9078
1.7035
2.2868
Employmen
(Jobs)
(5)
1.680
2.393
0
1.660
2.384
2.350
4.887
1.726
1.681
2.358
2.446
4.037
2.306
2.015
2.671
3.233
2.552
2.39
2.272
4.533
2.992
2.446
1.908
2.434
3.757
3.668
2.381
1.545
2.648
2.941
3.089
1.768
1.547
1.946
1.419
1.955
1.945
that results from a $1 million change in output delivered to final demand by the industry co
responding to the entry. Because the employment multipliers are based on 1992 data, the outp
delivered to final demand should be in 1992 dollars.
4. Each entry in column 4 measures the total dollar change in earnings of households employ
by all row industries that results from a $1 change in earnings paid directly to households e
ployed by the industry corresponding to the entry.
5. Each entry in column 5 measures the total change in number of jobs in all row industri
that results from a change of one job in the industry corresponding to the entry.
||
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