Question

According to the principle of the multiplier effect? *

A strong non-basic sector will attract basic sector employment
High levels of unemployment are the result of a lack of raw materials
There is no correlation between services that are deemed non-basic and basic
Businesses that produce revenue from outside the city will contribute to the growth of
businesses that simply produce revenue from within the city
If one cost of production rises, bringing down other costs will help to offset any
financial loss

Answer 1

Answer:

Businesses that produce revenue from outside the city will contribute to the growth of businesses that simply produce revenue from within the city

Explanation:

Given that the Multiplier effect in the urban population indicates that a city's livelihood and population growth is affected through the addition of manufacturing workers (basic workers) and dependents as a supplement of a new manufacturing and nonbasic business and

Hence, it can be concluded that the principle of the multiplier effect is that "Businesses that produce revenue from outside the city will contribute to the growth of businesses that simply produce revenue from within the city."