What does the base multiplier indicate about a region’s employment?

The base multiplier specifically refers to the relationship between the employment in basic industries and the total employment in a region. Basic industries are those that produce goods or services that are consumed outside of the local area, thereby bringing in money from outside the community. This influx of revenue stimulates demand for jobs in non-basic industries, leading to increased overall employment in the region.

The base multiplier effectively quantifies how many additional jobs are created in the broader economy as a result of the employment within basic industries. This means that when basic industries thrive and hire more employees, it creates a ripple effect throughout the economy; for each job created in the basic sector, additional non-basic jobs are supported. Thus, the base multiplier can be seen as a ratio that quantifies the relationship between total employment across the region and that specific basic employment.

The other choices do not correctly reflect the concept of the base multiplier. The ratios of non-basic jobs to total jobs, total job creation potential, or the distinction between temporary and permanent jobs do not capture the specific relationship that the base multiplier illustrates regarding basic industries and their broader employment impact.