Suppose you conduct and economic and environmental impact analysis where a $1M increase in demand for paper goods increases total lignocellulosic pollutants into area waterways by 32,000 tons. Further analysis shows total pollutant increases on the order of 54,000 tons through further related economic activity. These figures imply

Question

Suppose you conduct and economic and environmental impact analysis where a $1M increase in demand for paper goods increases total lignocellulosic pollutants into area waterways by 32,000 tons.  Further analysis shows total pollutant increases on the order of 54,000 tons through further related economic activity. These figures imply

BlackTom AI · Accepted Answer

The question presents an economic and environmental impact scenario and asks us to interpret the implied multiplier.
Option 1: 'an economic multiplier of 1.69.' This is incorrect because the prompt discusses pollutant impacts, not the broader economic multiplier. The figure 1.69 would be describing an environmental/pollutant effect multiplier, not an economic multiplier, which makes this option misaligned with the question focus.
Option 2: 'a pollutant multiplier of 0.032.' This value corresponds to the direct pollutant increase of 32,000 tons divided by the $1,000,000 increase in demand, giving 0.032. However, the problem also notes an additional 54,000 tons through related economic activity, so the total pollutant impact is larger than 32,000 alone. Relying only on the direct figure overlooks the induced effects, making this option incomplete and thus incorrect.
Option 3: 'a pollutant multiplier of 1.69.' According to the data, when you account for both the direct increase (32,000 tons) and the subsequent induced increase (54,000 tons), you obtain a larger total pollutant impact (86,000 tons) relative to the initial $1M demand rise. Although the exact arithmetic may depend on the defined baseline or unit conversion in the surrounding material, the provided answer specifies 1.69 as the pollutant multiplier, reflecting the amplified environmental impact from both direct and related economic activity. This aligns with treating the pollutant effect as being multiplied beyond the initial influx, i.e., the environmental consequence is not just the direct 32,000 tons but an amplified total.
Option 4: 'a pollutant multiplier of 0.054.' This value matches the direct 54,000 tons divided by the $1,000,000 increase only if one ignores the 32,000 tons and treats the induced amount in isolation. Since the question includes both the direct and the induced effects, and the stated correct choice is about 1.69 rather than 0.054, this option misrepresents the total environmental multiplier and is therefore incorrect.
In summary, the correct interpretation requires incorporating both the initial pollutant increase and the additional induced increase, leading to a larger multiplier than the direct figure alone. The option that captures the combined, amplified environmental impact as specified by the provided answer is the one stating a pollutant multiplier of 1.69.

ECON4330850.1251 Exam 3

查看解析

登录即可查看完整答案

类似问题

In theory, an initial injection of spending of $1 million by a government can result in an increase in real Gross Domestic Product (GDP) greater than $1 million due to

An initial increase in government spending of $100 billion can create more than $100 billion of spending throughout the economy by what economists call the __________ effect.

35. Refer to the figure. If the aggregate demand curve shifts from AD2 to AD1, the multiplier effect on real GDP will be a decrease from A. Q3 to Q1. B. Q2 to Q4. C. Q2 to Q1. D. Q3 to Q4.

55. If households in the economy save more of any extra income that they earn, then the multiplier effect will A. increase. B. decrease. C. be unaffected. D. become less than 1.0.

An increase in the MPC

Assume that MPC is the one you calculated in Question 5. Transfer payments increase by 40,000.00 units. As a result, the real GDP will change by [Fill in the blank], units.

Suppose the marginal propensity to consume is 0.75. If businesses become more optimistic about the future and raise their investment by $10, the short-run equilibrium output will _____ and consumption will _.

As contrasted to the mainstream view, Keynesian economists believe that ________ than mainstream economists believe.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单