FIFA World Cup 2026 Hosting and Economics
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Questions and Answers

What is the total amount Toronto and Vancouver are projected to spend on infrastructure for the FIFA World Cup?

  • $2 billion
  • $500 million
  • $750 million
  • $1 billion (correct)

    • Which of the following best describes the nature of economic impacts from spending in one region to another within Canada?

  • Spending has a ripple effect across the economy. (correct)
  • Spending only affects local businesses.
  • Regional spending has no impact outside of the spending area.
  • Only negative impacts are transmitted to other regions.

    • What multiplier is assumed in this scenario for the expenditure effect?

  • 2
  • 10
  • 3
  • 5 (correct)

    • How much will Canadian equilibrium expenditure and real GDP increase with a multiplier of 5 and a spending of $1 billion?

    <p>$5 billion</p> Signup and view all the answers

    Which statement accurately reflects the effects of spending on inter-regional economics?

    <p>Economic activity can influence overall production in other areas.</p> Signup and view all the answers

    Why is the assertion that the expenditure will have no effect outside Toronto and Vancouver deemed incorrect?

    <p>The interconnected nature of the Canadian economy causes ripple effects.</p> Signup and view all the answers

    How does the expenditure multiplier relate to overall economic impact?

    <p>It represents the total economic effect of initial spending.</p> Signup and view all the answers

    Which factor is NOT a channel through which spending in one region can affect another?

    <p>Lower interest rates exclusively in the spending region</p> Signup and view all the answers

    How many Canadian dollars are needed to purchase one U.S. dollar on March 21, 2023?

    <p>1.37</p> Signup and view all the answers

    What is the exchange rate for one Euro in Canadian dollars on March 21, 2023?

    <p>1.48</p> Signup and view all the answers

    Which of the following statements about buying goods in the U.S. is correct for the dates given?

    <p>Goods were cheaper in 2022 due to a stronger Canadian dollar.</p> Signup and view all the answers

    What is the marginal propensity to consume (MPC) calculated from the given data for disposable income?

    <p>0.7</p> Signup and view all the answers

    What is the breakeven level of income based on the given data?

    <p>$500 billion</p> Signup and view all the answers

    What was the exchange rate for 1 Canadian dollar to Indian Rupees on March 21, 2022?

    <p>60.53</p> Signup and view all the answers

    What does the change in consumption expenditure divided by the change in disposable income represent?

    <p>Marginal Propensity to Consume</p> Signup and view all the answers

    Which of the following statements is correct regarding loanable funds?

    <p>Funds for investment primarily come from household savings.</p> Signup and view all the answers

    Study Notes

    FIFA World Cup 2026 Hosting

    • Toronto and Vancouver designated as Canadian Official Host Cities for FIFA World Cup 2026.
    • They join 11 cities in the US and 3 in Mexico, marking the largest World Cup in history.

    Economic Impact of Expenditures

    • A combined expenditure of 1 billion dollars is planned for infrastructure improvement, including stadiums and transportation.
    • Disagreement with the notion that spending will only affect these two cities; interconnected economic effects reach other Canadian regions.
    • Spending increases demand for goods/services, influences labor mobility, and impacts production across Canada.
    • Multiplicative effect of the expenditure multiplier set at 5; predicts a 5 billion dollar increase in Canadian equilibrium expenditure and real GDP (1 billion * 5).

    Currency Exchange Rates Comparison (2022 vs 2023)

    • March 21, 2022 Rates:
      • 1.2593 CAD = 1 USD
      • 1.3894 CAD = 1 Euro
      • 1 CAD = 60.533 Indian Rupees
    • March 21, 2023 Rates:
      • 1 CAD = 0.72961 USD (approximately 1.37 CAD for 1 USD)
      • 1 CAD = 0.67741 Euro (approximately 1.48 CAD for 1 Euro)
      • 1 Indian Rupee = 0.01658 CAD

    Shopping Expense Analysis

    • In 2022, the Canadian dollar was stronger against the U.S. dollar (1.2593 CAD) compared to 2023 (1.37 CAD).
    • Shopping in the U.S. would have been more cost-effective on March 21, 2022.

    Analysis of Nevets’ Economy

    • Marginal Propensity to Consume (MPC):

      • Calculated as the change in consumption expenditure divided by the change in disposable income.
      • Between 100 and 200 billion disposable income, consumption increased by 70 billion; thus, MPC = 0.7.

    • Breakeven Level of Income:

      • Breakeven occurs where disposable income equals consumption expenditure, noted at 500 billion.

    Statement on Loanable Funds Market

    • Examination required on whether the assertion regarding the source of investment financing from household savings is correct or incorrect; further analysis needed.

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    Description

    This quiz explores the hosting of FIFA World Cup 2026 in Canadian cities Toronto and Vancouver, and the anticipated economic impacts associated with a billion-dollar expenditure. Participants will learn about currency exchange rate comparisons and the broader economic effects on Canadian regions.

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