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denis23 [38]
3 years ago
5

Suppose your community is considering using public money to build a new sports stadium for the team that is already in the commu

nity and unlikely to ever leave. Suppose you are watching a news broadcast in which the supporters are saying that it will enhance economic activity because of the increase in restaurant activity that will occur around the new stadium. Now suppose you hear that an independent economist is going to appear during the next segment. It is likely she will say:_______
a. there will be no new jobs created in net because there will be about the same number of restaurant jobs lost near the old stadium as gained near the new one.
b. the jobs created in the area will make it worth the investment.
c. there will be no new jobs created.
d. it may be a short-term cost, but in the long term, it will be worthwhile.
History
1 answer:
Yuri [45]3 years ago
3 0

Answer:

a. there will be no new jobs created in net because there will be about the same number of restaurant jobs lost near the old stadium as gained near the new one.

Explanation:

If the sports team already has a stadium in an area, and said stadium is demolished, or simply abandoned, because a new stadium is built with public money, the net effect in job creation will likely be very small, because the jobs  associated with the old stadium will be lost and replaced in similar number by the jobs associated with the new stadium.

Besides, the opportunity cost of using public funds to build a new stadium can be very high. Said public money could have been used instead to fund public schools, or hospitals.

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