Why Is the Multiplier Effect for the Local Economy Likely

question 30

Multiple Choice

Why is the multiplier effect for the local economy likely to be greater for the Los Angeles Lakers than the Sacramento Kings even though both are NBA teams?

• A) The L.A. Lakers have historically been more successful on the basketball court than the Kings and demand for tickets will be higher if a team plays well.
• B) Because L.A. is a larger metropolitan area, the Lakers will likely have to share more in local revenues with the league than the Kings.
• C) The Lakers sell out more games than the Kings meaning that ticket sales for the Lakers are mostly limited to local season ticket holders.
• D) The Lakers' players are much more likely to live the in the city in which they play than Sacramento's players.

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Definitions:

Purposive Approach

A method of statutory interpretation where courts look at the legislature's intent behind the law to apply it to specific cases.

RPM Agreement

The agreement between a retailer and a manufacturer that the retailer will sell certain products at a price set by the manufacturer.

Small Retail Co.

A business that sells goods or merchandise to consumers in relatively small quantities for personal, non-business use.

Auto Supply

Businesses or stores that specialize in providing parts, tools, and accessories for automobiles.