Question 1

Tourism is considered an export industry because:

Accepted Answer

Tourism is considered an export industry because it is produced in one region and purchased by people from outside that region. This means that the income generated from tourism comes from external sources and is brought into the local economy, much like an export industry. Choices A and B are not correct because while tourism may be the world's largest industry and suffer from economic leakages, these factors do not make it an export industry.

Question 2

The part of an economy that is under government control is called what?

Accepted Answer

The public sector includes government-owned and -controlled entities such as public schools, police departments, and public hospitals.

Question 3

Which of the following is a positive aspect of capitalism?

Accepted Answer

Capitalism emphasizes profit motive and competition, which can lead to the development of efficient production and consumption methods, which can result in lower costs for consumers and increased economic growth.

Question 4

Which of the following is NOT a factor of production?

Accepted Answer

Tax revenue is not a factor of production. Factors of production refer to resources that are used in the production of goods and services, such as land, labor, capital, and entrepreneurship. Tax revenue is a source of government revenue that is collected through taxation of individuals and businesses.

Question 5

A destination's reputation for friendliness is considered a:

Accepted Answer

A destination's reputation for friendliness is considered an intangible resource, as it is not a physical asset that can be touched or measured. It is an intangible quality that can greatly impact a destination's attractiveness to visitors.

Question 6

Capital is different than money because:

Accepted Answer

Capital refers to assets that can be used in the production process to generate income, such as machinery, buildings, and equipment. It is not immediately used up in the production process and can continue to generate income over time. Money, on the other hand, is a medium of exchange that can be used to purchase goods and services, but it does not necessarily generate income on its own. Therefore, choice B is the best answer.

Question 7

Capitalism requires the flow of which of the following?

Accepted Answer

The answer of Capitalism requires the flow of which of...

Question 8

Sustainable tourism requires which of the following?

Accepted Answer

Sustainable tourism involves utilizing tourism resources in a way that conserves them for future generations. This involves ensuring that the capital necessary to support tourism is conserved and not depleted, so that future generations can continue to generate wealth from the resources. Choices B, C, and D do not directly relate to the conservation of capital or resources.

Question 9

The environment becomes natural capital when:

Accepted Answer

Natural capital refers to the world's stocks of natural assets which include geology, soil, air, water, and all living things. It becomes natural capital when it generates wealth or provides economic value, such as through ecosystem services or resources that can be utilized by businesses or industries.

Question 10

Which of the following can be used to determining the value of the environment?

Accepted Answer

All of the options can be used to determine the value of the environment. Tourism receipts indicate the economic value of natural resources and wildlife, the ability to offset greenhouse gas emissions is a measure of the environmental value, and an increase in clean air is a measure of the social value. Considering all of these factors can provide a comprehensive understanding of the value of the environment.

Question 11

Which of the following is an example of tangible cultural capital

Accepted Answer

Tangible cultural capital refers to physical or material objects or places that have cultural significance. An UNESCO World Heritage site is a tangible example of cultural capital as it is a physical location that holds significant cultural value and is recognized by a global organization for its importance. Local recipes, traditional marriage ceremonies, and ancient fables are examples of intangible cultural capital as they are not physical objects, but rather practices or stories that hold cultural value.

Question 12

When developing an intangible cultural packages, it is important to consider which of the following?

Accepted Answer

It is important to consider all of these factors when developing an intangible cultural package. Understanding how a tourist consumes culture can help tailor the package to their interests, while ensuring tourist access to the resource is necessary for them to experience it. Authenticity is also important to maintain the integrity of the cultural product being offered.

Question 13

Which of the following is NOT a part of human capital?

Accepted Answer

Class structures are not a part of human capital. Human capital refers to the knowledge, skills, abilities, and other intangible assets that contribute to an individual's ability to produce economic value. Personality traits, education, and creativity are all examples of human capital.

Question 14

Social capital includes:

Accepted Answer

Social capital refers to the networks, norms, and trust that facilitate coordination and cooperation for mutual benefit, with reciprocity being a key component.

Question 15

Citizen power refers to:

Accepted Answer

Citizen power refers to the feelings of control over resources and business decisions.

Question 16

A planning group that includes local farmers and restaurant owners would be considered which type of social capital?

Accepted Answer

Bridging social capital refers to relationships and networks across different groups or communities. In this case, the planning group includes both local farmers and restaurant owners, who may not typically interact or collaborate, thus creating bridging social capital.

Question 17

Of the enabling conditions that support social capital development, which one ensures a the consideration of a variety of outcomes and development paths?

Accepted Answer

Diversity ensures that there is a range of perspectives and experiences represented within a community or group, which can lead to a more comprehensive consideration of outcomes and development paths. When there is diversity, there are multiple voices and viewpoints that can be taken into account, resulting in a more nuanced and well-rounded approach to decision-making and problem-solving.

Question 18

Which of the types of capital is described as the delivery system for all the other types of capital?

Accepted Answer

Built capital refers to the physical infrastructure and equipment of a society, including roads, buildings, and utilities, that are necessary for economic production and transportation of goods and services. It serves as the delivery system for all the other types of capital, such as human and financial capital, as they rely on the built capital in order to function and be productive.

Question 19

Which of the following is a form of financial capital?

Accepted Answer

All of the options listed, crowd sourcing, microfinance, and bank loans, are different forms of financial capital. Crowd sourcing involves raising funds from a large number of individuals, microfinance provides small loans to individuals or businesses who may not have access to traditional banking systems, and bank loans are loans given by banks to individuals or businesses.

Question 20

Political capital is closely related to social capital because:

Accepted Answer

Political capital and social capital are closely related in the context of tourism development because political capital affords stakeholders the ability to participate in the decision-making process and self-determine how tourism is developed. Social capital, on the other hand, refers to the relationships, networks, and trust between individuals and groups within a society, which can facilitate cooperation and collaboration towards common goals such as sustainable tourism development. Together, political and social capital can create a more inclusive and participatory approach to tourism development that reflects the needs and aspirations of local communities. The other answer choices are less relevant or inaccurate in the context of political and social capital in tourism development.

Quiz 2: Understanding Capital