AP Human Geography: Economic Development And Industry

AP Human Geography: Economic Development and Industry

Directions: After reading the information about basic and nonbasic sectors of the economy and multiplier effects, create a group of 4-5 people and ACT OUT a scenario that reflects your understanding of those terms.

Multiplier Effects - The phenomenon whereby when a job is created in one sector of the economy, it leads to the creation of jobs in other economic sectors; for example, when new staff are hired at a university, they spend money in nearby establishments (bars, stores, churches, real estate offices, etc.) creating jobs in those places, and they pay taxes that support road workers, assessors, county clerks, police departments, etc. Multiplier effects are important for local and regional economies.

Basic and Non-basic sectors and the multiplier effect Part of the employed people in an urban unit are producing goods or performing services for people outside the city itself. These workers are participating in what is known as “export activities,” and their efforts result in money flowing into the community. They make up the BASIC SECTOR of the city’s total economic structure. Other workers in an urban area support themselves by producing goods and services for the residents of the city itself. What they do is necessary for the well-being and successful operation of the city, but they don’t generate any new money for it. These workers make up the SERVICE or NONBASIC sector of the economy. The ration between basic and nonbasic sector workers is roughly the same for urban units of similar sizes: 2 nonbasic for every 1 basic. The addition of 10 new basic employees implies that the labor force will expand by 30 (20 nonbasic + 10 basic). This is a MULTIPLIER EFFECT associated with economic growth.

AP Human Geography: Economic Development and Industry

Directions: After reading the information about basic and nonbasic sectors of the economy and multiplier effects, create a group of 4-5 people and ACT OUT a scenario that reflects your understanding of those terms.

Multiplier Effects - The phenomenon whereby when a job is created in one sector of the economy, it leads to the creation of jobs in other economic sectors; for example, when new staff are hired at a university, they spend money in nearby establishments (bars, stores, churches, real estate offices, etc.) creating jobs in those places, and they pay taxes that support road workers, assessors, county clerks, police departments, etc. Multiplier effects are important for local and regional economies.

Basic and Non-basic sectors and the multiplier effect Part of the employed people in an urban unit are producing goods or performing services for people outside the city itself. These workers are participating in what is known as “export activities,” and their efforts result in money flowing into the community. They make up the BASIC SECTOR of the city’s total economic structure. Other workers in an urban area support themselves by producing goods and services for the residents of the city itself. What they do is necessary for the well-being and successful operation of the city, but they don’t generate any new money for it. These workers make up the SERVICE or NONBASIC sector of the economy. The ration between basic and nonbasic sector workers is roughly the same for urban units of similar sizes: 2 nonbasic for every 1 basic. The addition of 10 new basic employees implies that the labor force will expand by 30 (20 nonbasic + 10 basic). This is a MULTIPLIER EFFECT associated with economic growth.