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 )

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
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.
||
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. ||
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Profit Maximization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education