Understanding the revenue generating ability of the core export activities of a local area has important implications on the market value of real estate. When the income that these activities generate is re-spent within the community on other local goods and services, the community is benefiting through a:
A) dividend process
B) multiplier process
C) forced saving process
D) diversification process

Question

Quizplus · Accepted Answer

The multiplier process refers to the effect of the initial spending on local goods and services, which generates additional rounds of spending and income within the community. This, in turn, creates a multiplier effect on the local economy, leading to increased economic growth and job creation. Therefore, understanding the revenue generating ability of the core export activities of a local area can have important implications on the market value of real estate as it can attract more investment and create a more vibrant local economy.

Understanding the Revenue Generating Ability of the Core Export Activities