Region: Toronto, ON
Questions:
1. Estimate the location quotients and basic employment for your region using your state as the benchmark. Estimate your economic base multiplier.
a. Now assume that the basic employment in your region consists of all employees in the following sectors:
Farming, Forestry, Mining, Manufacturing, Federal civilian, Military sectors.
All other employment is nonbasic. Recalculate your economic base multiplier using this “assignment method”.
b. If possible, compare these multipliers with the industry multipliers from an input-output program.
2. Estimate and interpret the growth component, the industry mix, and the competitive effect for your country.
3. Given the Esteban-Marquillas extension, classify your industries according to the feasibility of government intervention. From your knowledge of these industries, would you argue that those under “intervention possibly useful” need outside assistance or do they fall into the “fallacy of small numbers,” in which moderate changes in small numbers turn into exceptionally large percentages?
Important note: Please use Chapter 7 of my attached textbook as a reference (above questions are on page 201).
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