The process of regional economic growth through cumulative causation leads to
A) an expansion of taxes the regional government can collect.
B) a drop in the amount of skilled labour in the region.
C) corresponding rapid growth in distant areas with economic difficulties.
D) the increased formation of forward linkages and the eventual ending of backward linkages.
E) export substitution.

Question

Quizplus · Accepted Answer

As regional economic growth occurs, the region's economy expands, leading to increased business activity and higher incomes, which in turn increases the tax base and allows the regional government to collect more taxes.

The Process of Regional Economic Growth Through Cumulative Causation Leads