Sometimes a City Will Argue That Having a Professional Sports

question 8

Multiple Choice

Sometimes a city will argue that having a professional sports franchise in the city will contribute to economic growth. The rationale for this statement is based on the multiplier effect. Suppose a city estimates that a professional sports franchise will create $45 million of additional income and that a person receiving a portion of this money will spend 80% and save 20%. Assuming the multiplier effect model is accurate, what is the net effect of the $45 million? Round to the nearest hundred thousand.

• A)$450.0 million
• B)$225.0 million
• C)$281.3 million
• D)$262.5 million
• E)$356.3 million

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Definitions:

Torso

The central part of the human body to which the neck and limbs are attached.

ROM

Range of Motion; measures the extent of movement around a specific joint or body part.

Extremities

The limbs of the body, specifically the arms and legs.

Restrict Mobility

Measures or practices to limit an individual's physical movement, often for medical or safety reasons.