Deck 12: Economic Impact Analysis

Question 1

This type of individual comes to a community for one event while also attending a basketball game. If a university is performing an economic impact study of its basketball team, this individual would be classified as what kind of visitor?

A) Casual visitor
B) Time-switcher
C) Reverse time-switcher
D) Incremental visitor
E) None of the above

Answer 1

A

Question 2

This type of individual changes the time he or she is coming to a community to coincide with an event being held in that community (i.e., University of South Carolina basketball game). If the university is performing an economic impact study of its basketball team, this individual would be classified as which of the following types of visitors?

A) Casual visitor
B) Time-switcher
C) Reverse time-switcher
D) Incremental visitor
E) None of the above

Answer 2

B

Question 3

Financial returns measured by an economic impact study include which of the following?

A) New jobs
B) New earnings or income
C) New tax revenues
D) Positive externalities
E) All of the above

Answer 3

E

Question 4

When selecting the geographic area of impact for a concert at the Colonial Life Arena in Columbia, South Carolina, which area should the researcher choose to get the largest economic impact?

A) The City of Columbia only
B) Richland County, which contains the City of Columbia
C) Richland and neighboring Lexington County
D) The Columbia, South Carolina, metropolitan statistical area
E) The State of South Carolina

Question 5

Of the following statements regarding economic impact, which is true?

A) All spending of casual visitors and time-switchers should be counted in an economic impact analysis.
B) All spending of casual visitors and the incremental spending of time-switchers should be counted in an economic impact analysis.
C) Incremental spending of casual visitors and all spending of time-switchers should be counted in an economic impact analysis.
D) Incremental spending of casual visitors and time-switchers should be counted in an economic impact analysis.
E) None of the above

Question 6

When constructing a survey to measure direct spending at an event, the following question is designed to determine the type of visitor. Survey Question: "Does this visit to Houston replace any other past/future visit to this area?"

A) Incremental visitor
B) Casual visitor
C) Time-switcher
D) Reverse time-switcher
E) Relevant visitor

Question 7

Which of the following occur in the area of impact representing the circulation of initial visitor expenditures?

A) Direct economic impacts
B) Direct input
C) Direct output
D) Indirect economic impacts
E) Induced economic impacts

Question 8

Impacts on earnings and employment are which of the following?

A) Direct economic impacts
B) Direct input
C) Direct output
D) Indirect economic impacts
E) Induced economic impacts

Question 9

What does the multiplier effect measure?

A) Direct economic impacts
B) Indirect economic impacts
C) Induced economic impacts
D) Both A and B
E) Both B and C

Question 10

Overestimations of economic impact occur because most analyses do not account for __________, those local residents who leave town during the event period because of the event.

A) Incremental visitors
B) Casual visitors
C) Time-switchers
D) Reverse time-switchers
E) Relevant visitors

Question 11

Time-switchers leave a community when it hosts an event.

Question 12

Typically, the most complicated tax to analyze when calculating fiscal impact is the sales tax.

Question 13

The output multiplier measures the indirect and induced effects of an extra unit of direct impact spending on economic activity within the local economy.

Question 14

The employment multiplier measures the indirect and induced effects of an extra unit of spending on the level of household income in the local economy.

Question 15

The income multiplier measures the direct, indirect, and induced effects of an extra unit of spending on employment in the local economy.

Question 16

Not measuring opportunity cost causes the overestimation of economic impact.

Question 17

Psychic impact is the emotional impact on a community that results when the community hosts prestigious events or major sports teams.

Question 18

Academic research conducted by economists to measure the economic impact of sport facilities often shows that these facilities have little or no impact on the community.

Question 19

One of the easiest steps in conducting an economic impact study is to calculate the fiscal impact.

Question 20

The geographic area of impact should be determined late in an economic impact study.