Suppose your community is considering using public money to build a new sports stadium for a new team that will only come to the community if it is built for them. Suppose you are watching a news broadcast in which the supporters are saying that it will enhance economic activity because of the increase in restaurant activity that will occur around the new stadium. Now suppose you hear that an independent economist is going to appear during the next segment. It is likely she will say
A. it may be a short-term cost, but in the long term it will be worthwhile.
B. there will be no new economic activity created.
C. there will be no new economic activity created in net because the same amount of money will be spent in the city whether or not there is a team. It will simply substitute from the game to something else.
D. the economic activity created in the area will make it worth the investment.
Answer: C
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Based on the production data for Pat's Pizza Parlor in the above table, the average product of labor when 4 workers are hired is ________ pizzas
A) 8 B) 10 C) 11.25 D) 45
Social regulation differs from industrial regulation in that:
A. social regulation applies to virtually all industries, while industrial regulation applies to restricted number. B. industrial regulation is involved in the details of the production process, while social regulation is not. C. social regulation has expanded less rapidly in recent years than has industrial regulation. D. industrial regulation regulates products whereas social regulation regulates prices.