Deck 14: Tourisms Economic Impact

Question 1

If the demand for aircraft seats is elastic over a narrow range of prices, an increase in fares within that range) would result in:

A) no change in total revenue.
B) an increase in total revenue.
C) a decrease in total revenue.
D) None of the above.
E) All of the above.

Answer 1

C

Question 2

Which of the following is true?

A) Multiplier = 1 MPS
B) Multiplier occurs because the amounts initially spent are re-spent a number of times during the year.
C) Multiplier + 1 1 - MPC
D) All of the above.
E) None of the above.

Answer 2

D

Question 3

Tourism development is usually viewed as bringing with it positive economic results. However, there are potential negative economic results to be considered. Among these negative economic results are:

A) inflationary pressure, overdependence on tourism and environmental costs.
B) overdependence on tourism, increased tax revenues, and inflationary pressure.
C) environmental costs, stimulation of local investment, and inflationary pressure.
D) inflationary pressure, high rate of savings, and environmental costs.
E) All of the above.

Answer 3

A

Question 4

One of the major induced or indirect) effects of tourism economically is on:

A) balance of payments.
B) income the multiplier).
C) export levels.
D) propensity to save.
E) import levels.

Question 5

Which of the following is not an economic benefit of tourism?

A) increases tax revenues
B) may cause changes in patterns of family life
C) stimulates investments
D) increases employment

Question 6

The "rippling" or "multiplier" effect of tourist spending ultimately:

A) widely distributes the total economic impact of tourist spending.
B) increases the economic impact of tourist spending.
C) affects the economy very little, actually.
D) has no effect on the local economy due to leakage.

Question 7

Demand for tourism in general is thought to be income:

A) elastic.
B) inelastic.
C) unitary.
D) None of the above.

Question 8

Which of the following is true of touristic expenditures?

A) They are narrowly distributed within the economy.
B) They are received mainly by hotels and restaurants.
C) They benefit mainly hospitality business suppliers.
D) They benefit all citizens in the community.

Question 9

Tourism is an "invisible" export because:

A) monies spent by tourists are hard to trace.
B) tourist dollars are usually exported after being received, and disappear.
C) tourism constitutes non-merchandise transactions.
D) most business people never see the money.
E) money flow is in the opposite direction as tourist flow.

Question 10

Tourism from Brazil to the U.S.:

A) is an export for the U.S.
B) is an export for Brazil.
C) is an import for the U.S.
D) should not be considered either an export or an import.

Question 11

One of the major induced or indirect) effects of tourism economically is on: similar to 3.)

A) import levels.
B) income through the multiplier).
C) export levels.
D) propensity to save.
E) propensity to consume.

Question 12

Visitor expenditures ultimately benefit:

A) hotels and restaurants-primary beneficiaries.
B) secondary businesses which supply primary beneficiaries.
C) all businesses which receive tourist expenditures.
D) supply businesses which serve all tourist businesses.
E) all businesses, professional services, and government.

Question 13

The optimum price for a hotel room would be one that:

A) maximizes per unit profit.
B) maximizes occupancy for the entire hotel.
C) maximizes profits.
D) maximizes total revenue.
E) maximizes guest satisfaction.

Question 14

What reason can be given for the importance of price stabilization for tourist purchases?

A) Tourists are always hunting for bargains.
B) Rising prices automatically tend to reduce the volume of demand.
C) Tourists probably will not return so we can charge them more just so long as we keep the prices stable.
D) Tax collections to the government will be more favorable.
E) Demand will probably rise.