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The Multiplier Effect in Economics: Definition, Formula & Example

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A mega event like the World Cup creates a multiplier effect because _____.

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1. Another term for describing the multiplier effect is _____.

2. Backwards linkage is _____.

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About This Quiz & Worksheet

The multiplier effect is an essential economic concept, which you can test your knowledge of with this worksheet and interactive quiz. Topics of quiz questions will include marginal propensity to consume (MPC), backwards linkage and causes of multiplier effects.

Quiz & Worksheet Goals

Students will be quizzed on the following:

  • Terms for multiplier effect
  • Impact of mega events
  • Marginal propensity to consume
  • Backwards linkage
  • Determinants of MPC

Skills Practiced

You will have an opportunity to demonstrate your ability in:

  • Interpreting information - verify that you can read information regarding outcomes of mega events and interpret it correctly
  • Reading comprehension - ensure that you draw the most important information about the multiplier effect from the related lesson
  • Knowledge application - use your knowledge to answer questions about backwards linkage
  • Information recall - access the knowledge you've gained regarding MPC and its determinants

Additional Learning

Be sure to study the supplementary lesson on this subject titled The Multiplier Effect in Economics: Definition, Formula & Example for more information. Some goals covered in this lesson include:

  • Explain the concept of the multiplier effect and how it is caused
  • Understand the importance of MPC and what it tells
  • Apply what you've learned in the lesson to real life situations, such as the World Cup
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