Question 1

The tourism income is impacted by the following factors except:&#10;A) foreign exchange earnings.&#10;B) leakage.&#10;C) tourism satellite account.&#10;D) balance of payments.&#10;E) multiplier effect.

Accepted Answer

The tourism satellite account is a statistical tool developed by the United Nations to measure the size of economic sectors that are not defined as industries in national accounts, including the tourism sector. It does not directly impact tourism income but rather measures and analyzes it. The other options (foreign exchange earnings, leakage, balance of payments, and multiplier effect) are factors that directly impact tourism income.

Question 2

Negative impacts of tourism may occur when there is:&#10;A) adaptation to tourist demands.&#10;B) change or loss of indigenous identity.&#10;C) loss of values resulting from standardization.&#10;D) loss of authenticity or staged authenticity.&#10;E) all of the above

Accepted Answer

All the options listed (adaptation to tourist demands, change or loss of indigenous identity, loss of values resulting from standardization, and loss of authenticity or staged authenticity) are negative impacts of tourism. These impacts can lead to cultural dilution, loss of cultural heritage, and the transformation of local cultures and environments to cater to tourist preferences, often at the expense of the authenticity and sustainability of the destination.

Question 3

One of the potential positive environmental impacts of tourism is:&#10;A) changes of land use.&#10;B) greater protection of specific ecosystems.&#10;C) cultural clashes.&#10;D) increase in the multiplier effect.

Accepted Answer

Tourism can lead to greater protection of specific ecosystems as areas of natural beauty or ecological importance are often preserved and protected to attract tourists. This can lead to conservation efforts and increased awareness of environmental issues.

Question 4

A nation's balance of payments is the record of all economic transactions between its residents and the rest of the world. It includes the following except:&#10;A) the current account.&#10;B) the capital account.&#10;C) the gross domestic account.&#10;D) the financial account.

Accepted Answer

The gross domestic account is not a component of a nation's balance of payments. The balance of payments typically includes the current account, the capital account, and the financial account, which record different types of international transactions.

Question 5

A macroeconomic approach from a national or region's perspective does not examines tourism's effects on:&#10;A) foreign exchange.&#10;B) income.&#10;C) businesses' cash flow.&#10;D) national or regional employment.

Accepted Answer

A macroeconomic approach focuses on the broader economic impacts of tourism at a national or regional level, such as effects on foreign exchange, income, and employment. It typically does not delve into the specific operational aspects of businesses, such as cash flow, which are considered microeconomic issues.

Question 6

What is the uniqueness of tourism multiplier effect?&#10;A) It measures the &#34;fresh&#34; or new dollars that enter a local economy.&#10;B) Tourism jobs require little training.&#10;C) Tourism is usually the largest employer in many community.&#10;D) It is easy to count tourism dollars.

Accepted Answer

The tourism multiplier effect refers to the process by which an initial expenditure in the tourism sector leads to a series of spending cycles, thereby generating more income for the local economy. This concept highlights how spending by tourists leads to increased revenues for local businesses, which then spend this income in other sectors of the economy, effectively multiplying the impact of the original spending. Choices B, C, and D do not specifically relate to the uniqueness of the tourism multiplier effect.

Question 7

For tourism demand, variables capable of shifting the entire demand curve inward or outward include the following:&#10;A) the season.&#10;B) prices of rooms in other locations.&#10;C) transportation to the destination price, ease).&#10;D) all of the above&#10;E) A and C only

Accepted Answer

All the options listed are capable of shifting the entire demand curve for tourism either inward or outward. Seasonal changes can affect demand due to weather or holiday periods, prices of rooms in other locations can make a destination more or less attractive compared to alternatives, and the cost and ease of transportation to the destination directly affect its accessibility and attractiveness.

Question 8

This method determines the net effects of the tourism sector:&#10;A) measuring income elasticity.&#10;B) structural analysis.&#10;C) multiplier effect.&#10;D) input- output analysis.&#10;E) cost/benefit analysis.

Accepted Answer

The answer of This method determines the net effects of...

Question 9

This economics technique measures the amount of local income per unit of visitor expenditure.&#10;A) the demonstration effect&#10;B) the multiplier effect&#10;C) cost benefit analysis&#10;D) satellite national accounting&#10;E) structural analysis

Accepted Answer

The multiplier effect is the correct answer because it measures how initial spending leads to increased income and consumption in a local economy. This concept is often used in tourism economics to assess how spending by visitors generates additional economic activity and income in the area.

Question 10

The following statement about elasticity is not true.&#10;A) Business travelers have a more inelastic demand than leisure travelers.&#10;B) Luxury goods have a more inelastic demand than do necessities.&#10;C) Luxury goods have a more elastic demand than do necessities.&#10;D) Leisure travelers have a more elastic demand than business travelers.

Accepted Answer

Luxury goods typically have a more elastic demand than necessities because consumers can more easily forego luxury items when their prices increase, unlike necessities which consumers must buy regardless of price changes.

Question 11

Adam Smith stated in his book The Wealth of Nations the concepts of:&#10;A) the invisible hand that guides resource to where they have the highest value.&#10;B) aggregate supply and demand.&#10;C) the increased productivity due to specialization.&#10;D) A and B&#10;E) A, B, and C

Accepted Answer

The answer of Adam Smith stated in his book The...

Question 12

This is not the basis on which the economics of tourism is studied:&#10;A) how to make the best possible use of resources.&#10;B) human beings' wants and decisions to travel.&#10;C) the increased productivity due to specialization.&#10;D) tourism supply and demand.

Accepted Answer

The answer of This is not the basis on which...

Question 13

This is a strategy for minimizing leakage from a destination's economy.&#10;A) factors of production&#10;B) import substitution&#10;C) demonstration effect&#10;D) transfer pricing&#10;E) income elasticity of demand

Accepted Answer

The answer of This is a strategy for minimizing leakage...

Question 14

The three major economic impacts of tourism are:&#10;A) invisible exports, balance of payments, and economic growth.&#10;B) foreign exchange earnings, land speculation, and import substitution.&#10;C) employment, income, and foreign exchange earnings.&#10;D) cultural facilities, infrastructure, and employment.&#10;E) income, demonstration effect, and multiplier.

Accepted Answer

The answer of The three major economic impacts of tourism...

Question 15

This approach is a key to achieving an acceptable balance between the positive and negative impacts of tourism.&#10;A) carrying capacity&#10;B) cultural clashes&#10;C) cost- benefit analysis&#10;D) sustainable tourism development&#10;E) economies of scale

Accepted Answer

The answer of This approach is a key to achieving...

Question 16

These are the three levels of income generated by tourism.&#10;A) employment, imports, and exports&#10;B) currency, capital, and exports&#10;C) direct, indirect, and induced&#10;D) local, domestic, and foreign&#10;E) personal, corporate, and tax

Accepted Answer

The answer of These are the three levels of income...

Question 17

The great benefit of Tourism Satellite Account TSA) is:&#10;A) it is easy to collect data and calculate TSA.&#10;B) it allows for comparisons between regions, countries, or groups of countries.&#10;C) it measures the opportunity cost of tourism development projects.&#10;D) it measures the interactions among industries.

Accepted Answer

The answer of The great benefit of Tourism Satellite Account...

Question 18

This is not a negative social impact of tourism.&#10;A) loss of cultural authenticity&#10;B) encouragement of urbanization and emigration&#10;C) commercialization of traditional welcome and hospitality custom&#10;D) increase in health risk&#10;E) keeping local culture and traditions alive

Accepted Answer

The answer of This is not a negative social impact...

Question 19

The elasticity is the ratio of the percentage change in the quantity divided by the percentage change in the price. Which of the following statements) is true about elasticity?&#10;A) The bigger the percentage change in quantity relative to the percentage change in price, the more elastic is demand.&#10;B) When quantity changes by more than price, the demand is said to be inelastic.&#10;C) When price changes by more than quantity, the demand is said to be elastic.&#10;D) When quantity changes by more than price, the demand is said to be elastic.&#10;E) both A and D

Accepted Answer

The answer of The elasticity is the ratio of the...

Question 20

The tourism demand depends on such factors as the following except:&#10;A) the consumers' preferences.&#10;B) the prices of related tourism goods and services.&#10;C) the consumers' home residence.&#10;D) the number of consumers.&#10;E) the consumers' income.

Accepted Answer

The answer of The tourism demand depends on such factors...

Question 21

The law of demand indicates that price and quantity demanded are inversely related:&#10;A) when price increases, the quantity decreases.&#10;B) when price increases, the quantity demanded decreases.&#10;C) when price decreases, the demand decreases.&#10;D) when prices decreases, the quantity increases.

Accepted Answer

The answer of The law of demand indicates that price...

Question 22

These related goods and services are complementary when:&#10;A) the price of one increases, the demand for the other goods is constant.&#10;B) the price of one decreases, the demand for the other goods decreases.&#10;C) the price of one decreases, the demand for the other increases.&#10;D) the price of one increases, the demand for the other goods increases.

Accepted Answer

The answer of These related goods and services are complementary...

Question 23

These related goods and services are substitutes of each other when:&#10;A) the price of one increases, the demand for the other goods is constant.&#10;B) the price of one decreases, the demand for the other increases.&#10;C) the price of one increases, the demand for the other goods increases.&#10;D) the price of one increases, the demand for the other goods decreases.

Accepted Answer

The answer of These related goods and services are substitutes...

Question 24

The microeconomics of tourism is concerned with the following except:&#10;A) tourism's effect on national employment and income.&#10;B) studies of individual sectors such as restaurants and hotels, etc.&#10;C) competition.&#10;D) individual consumers.&#10;E) cross elasticity of demand.

Accepted Answer

The answer of The microeconomics of tourism is concerned with...

Deck 4: Tourism Economics