The multiplier in a given location is highest when subcontracts of the basic sector are

Question

Quizplus · Accepted Answer

The multiplier in a given location is highest when subcontracts of the basic sector are local. This means that the basic sector should employ local subcontractors and suppliers, which creates a multiplier effect in the local economy. The money spent on these subcontracts and supplies is then circulated in the local economy, generating additional economic activity and creating jobs. This is why the multiplier effect is highest when the basic sector uses local subcontracts.

The Multiplier in a Given Location Is Highest When Subcontracts