Which of the following demonstrates the multiplier effect of large cities?

Prepare for the CEOE Oklahoma Subject Area Tests with multiple choice questions, detailed explanations, and comprehensive study materials. Get ready to excel in your examination!

The correct choice illustrates how specialized equipment in large cities can attract more businesses, reflecting the multiplier effect. This phenomenon occurs when an initial investment or resource leads to wider economic benefits. In this context, the specialized equipment may enhance the efficiency and productivity of enterprises, thereby encouraging new businesses to establish themselves in the area, increasing employment opportunities, and contributing to overall economic growth.

As these businesses grow and become more productive, they often require additional local services, suppliers, and workers, which creates a ripple effect throughout the economy. This interconnectivity is a fundamental aspect of the multiplier effect, as the initial draw of specialized equipment not only aids existing companies but also fosters an environment where new businesses can thrive due to the presence of these resources.

In contrast, while rising property values, increased public transportation options, and improved education facilities are all significant factors that contribute to the overall development of large cities, they do not directly illustrate the concept of the multiplier effect as prominently as the presence of specialized equipment does. Rising property values indicate demand but do not directly cause economic growth as a multiplier, while public transportation and education enhancements contribute to the attractiveness of a city without the direct business stimulation that specialized equipment presents.

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