Question 1

Adam Smith stated in his book The Wealth of Nations the concepts of:

Accepted Answer

A)  the invisible hand that guides resource to where they have the highest value. 
B)  aggregate supply and demand. 
C)  the increased productivity due to specialization. 
D)  A and B 
E)  A, B, and C 
A)  the invisible hand that guides resource to where they have the highest value. 
B)  aggregate supply and demand. 
C)  the increased productivity due to specialization. 
D)  A and B 
E)  A, B, and C E

Question 2

The great benefit of Tourism Satellite Account (TSA) is:

Accepted Answer

A)  it is easy to collect data and calculate TSA. 
B)  it allows for comparisons between regions, countries, or groups of countries. 
C)  it measures the opportunity cost of tourism development projects. 
D)  it measures the interactions among industries. 
A)  it is easy to collect data and calculate TSA. 
B)  it allows for comparisons between regions, countries, or groups of countries. 
C)  it measures the opportunity cost of tourism development projects. 
D)  it measures the interactions among industries. B

Question 3

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?

Accepted Answer

A)  The bigger the percentage change in quantity relative to the percentage change in price, the more elastic is demand. 
B)  When quantity changes by more than price, the demand is said to be inelastic. 
C)  When price changes by more than quantity, the demand is said to be elastic. 
D)  When quantity changes by more than price, the demand is said to be elastic. 
E)  both A and D 
A)  The bigger the percentage change in quantity relative to the percentage change in price, the more elastic is demand. 
B)  When quantity changes by more than price, the demand is said to be inelastic. 
C)  When price changes by more than quantity, the demand is said to be elastic. 
D)  When quantity changes by more than price, the demand is said to be elastic. 
E)  both A and D E

Question 4

The microeconomics of tourism is concerned with the following except:

Accepted Answer

A)  tourism's effect on national employment and income. 
B)  studies of individual sectors such as restaurants and hotels, etc. 
C)  competition. 
D)  individual consumers. 
E)  cross elasticity of demand. 
A)  tourism's effect on national employment and income. 
B)  studies of individual sectors such as restaurants and hotels, etc. 
C)  competition. 
D)  individual consumers. 
E)  cross elasticity of demand.

Question 5

This approach is a key to achieving an acceptable balance between the positive and negative impacts of tourism.

Accepted Answer

A)  carrying capacity 
B)  cultural clashes 
C)  cost- benefit analysis 
D)  sustainable tourism development 
E)  economies of scale 
A)  carrying capacity 
B)  cultural clashes 
C)  cost- benefit analysis 
D)  sustainable tourism development 
E)  economies of scale

Question 6

The following statement about elasticity is not true.

Accepted Answer

A)  Business travelers have a more inelastic demand than leisure travelers. 
B)  Luxury goods have a more inelastic demand than do necessities. 
C)  Luxury goods have a more elastic demand than do necessities. 
D)  Leisure travelers have a more elastic demand than business travelers. 
A)  Business travelers have a more inelastic demand than leisure travelers. 
B)  Luxury goods have a more inelastic demand than do necessities. 
C)  Luxury goods have a more elastic demand than do necessities. 
D)  Leisure travelers have a more elastic demand than business travelers.

Question 7

The law of demand indicates that price and quantity demanded are inversely related:

Accepted Answer

A)  when price increases, the quantity decreases. 
B)  when price increases, the quantity demanded decreases. 
C)  when price decreases, the demand decreases. 
D)  when prices decreases, the quantity increases. 
A)  when price increases, the quantity decreases. 
B)  when price increases, the quantity demanded decreases. 
C)  when price decreases, the demand decreases. 
D)  when prices decreases, the quantity increases.

Question 8

This is not a negative social impact of tourism.

Accepted Answer

A)  loss of cultural authenticity 
B)  encouragement of urbanization and emigration 
C)  commercialization of traditional welcome and hospitality custom 
D)  increase in health risk 
E)  keeping local culture and traditions alive 
A)  loss of cultural authenticity 
B)  encouragement of urbanization and emigration 
C)  commercialization of traditional welcome and hospitality custom 
D)  increase in health risk 
E)  keeping local culture and traditions alive

Question 9

This is not the basis on which the economics of tourism is studied:

Accepted Answer

A)  how to make the best possible use of resources. 
B)  human beings' wants and decisions to travel. 
C)  the increased productivity due to specialization. 
D)  tourism supply and demand. 
A)  how to make the best possible use of resources. 
B)  human beings' wants and decisions to travel. 
C)  the increased productivity due to specialization. 
D)  tourism supply and demand.

Question 10

This is a strategy for minimizing leakage from a destination's economy.

Accepted Answer

A)  factors of production 
B)  import substitution 
C)  demonstration effect 
D)  transfer pricing 
E)  income elasticity of demand 
A)  factors of production 
B)  import substitution 
C)  demonstration effect 
D)  transfer pricing 
E)  income elasticity of demand

Question 11

The three major economic impacts of tourism are:

Accepted Answer

A)  invisible exports, balance of payments, and economic growth. 
B)  foreign exchange earnings, land speculation, and import substitution. 
C)  employment, income, and foreign exchange earnings. 
D)  cultural facilities, infrastructure, and employment. 
E)  income, demonstration effect, and multiplier. 
A)  invisible exports, balance of payments, and economic growth. 
B)  foreign exchange earnings, land speculation, and import substitution. 
C)  employment, income, and foreign exchange earnings. 
D)  cultural facilities, infrastructure, and employment. 
E)  income, demonstration effect, and multiplier.

Question 12

Negative impacts of tourism may occur when there is:

Accepted Answer

A)  adaptation to tourist demands. 
B)  change or loss of indigenous identity. 
C)  loss of values resulting from standardization. 
D)  loss of authenticity or staged authenticity. 
E)  all of the above 
A)  adaptation to tourist demands. 
B)  change or loss of indigenous identity. 
C)  loss of values resulting from standardization. 
D)  loss of authenticity or staged authenticity. 
E)  all of the above

Question 13

These are the three levels of income generated by tourism.

Accepted Answer

A)  employment, imports, and exports 
B)  currency, capital, and exports 
C)  direct, indirect, and induced 
D)  local, domestic, and foreign 
E)  personal, corporate, and tax 
A)  employment, imports, and exports 
B)  currency, capital, and exports 
C)  direct, indirect, and induced 
D)  local, domestic, and foreign 
E)  personal, corporate, and tax

Question 14

For tourism demand, variables capable of shifting the entire demand curve inward or outward include the following:

Accepted Answer

A)  the season. 
B)  prices of rooms in other locations. 
C)  transportation to the destination price, (ease). 
D)  all of the above 
E)  A and C only 
A)  the season. 
B)  prices of rooms in other locations. 
C)  transportation to the destination price, (ease). 
D)  all of the above 
E)  A and C only

Question 15

These related goods and services are complementary when:

Accepted Answer

A)  the price of one increases, the demand for the other goods is constant. 
B)  the price of one decreases, the demand for the other goods decreases. 
C)  the price of one decreases, the demand for the other increases. 
D)  the price of one increases, the demand for the other goods increases. 
A)  the price of one increases, the demand for the other goods is constant. 
B)  the price of one decreases, the demand for the other goods decreases. 
C)  the price of one decreases, the demand for the other increases. 
D)  the price of one increases, the demand for the other goods increases.

Question 16

This method determines the net effects of the tourism sector:

Accepted Answer

A)  measuring income elasticity. 
B)  structural analysis. 
C)  multiplier effect. 
D)  input- output analysis. 
E)  cost/benefit analysis. 
A)  measuring income elasticity. 
B)  structural analysis. 
C)  multiplier effect. 
D)  input- output analysis. 
E)  cost/benefit analysis.

Question 17

These related goods and services are substitutes of each other when:

Accepted Answer

A)  the price of one increases, the demand for the other goods is constant. 
B)  the price of one decreases, the demand for the other increases. 
C)  the price of one increases, the demand for the other goods increases. 
D)  the price of one increases, the demand for the other goods decreases. 
A)  the price of one increases, the demand for the other goods is constant. 
B)  the price of one decreases, the demand for the other increases. 
C)  the price of one increases, the demand for the other goods increases. 
D)  the price of one increases, the demand for the other goods decreases.

Question 18

The tourism demand depends on such factors as the following except:

Accepted Answer

A)  the consumers' preferences. 
B)  the prices of related tourism goods and services. 
C)  the consumers' home residence. 
D)  the number of consumers. 
E)  the consumers' income. 
A)  the consumers' preferences. 
B)  the prices of related tourism goods and services. 
C)  the consumers' home residence. 
D)  the number of consumers. 
E)  the consumers' income.

Question 19

What is the uniqueness of tourism multiplier effect?

Accepted Answer

A)  It measures the "fresh" or new dollars that enter a local economy. 
B)  Tourism jobs require little training. 
C)  Tourism is usually the largest employer in many community. 
D)  It is easy to count tourism dollars. 
A)  It measures the "fresh" or new dollars that enter a local economy. 
B)  Tourism jobs require little training. 
C)  Tourism is usually the largest employer in many community. 
D)  It is easy to count tourism dollars.

Question 20

This economics technique measures the amount of local income per unit of visitor expenditure.

Accepted Answer

A)  the demonstration effect 
B)  the multiplier effect 
C)  cost benefit analysis 
D)  satellite national accounting 
E)  structural analysis 
A)  the demonstration effect 
B)  the multiplier effect 
C)  cost benefit analysis 
D)  satellite national accounting 
E)  structural analysis

Adam Smith stated in his book The Wealth of Nations the concepts of:

The great benefit of Tourism Satellite Account (TSA) is:

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?

The microeconomics of tourism is concerned with the following except:

This approach is a key to achieving an acceptable balance between the positive and negative impacts of tourism.

The following statement about elasticity is not true.

The law of demand indicates that price and quantity demanded are inversely related:

This is not a negative social impact of tourism.

This is not the basis on which the economics of tourism is studied:

This is a strategy for minimizing leakage from a destination's economy.

The three major economic impacts of tourism are:

Negative impacts of tourism may occur when there is:

These are the three levels of income generated by tourism.

For tourism demand, variables capable of shifting the entire demand curve inward or outward include the following:

These related goods and services are complementary when:

This method determines the net effects of the tourism sector:

These related goods and services are substitutes of each other when:

The tourism demand depends on such factors as the following except:

What is the uniqueness of tourism multiplier effect?

This economics technique measures the amount of local income per unit of visitor expenditure.

Tourism Introduction, Past and Present Tourism

Motivation for Leisure Travel

Tourism Marketing

Tourism Organizations and Policy

Tourism Planning and Sustainable Development

Tourism Research

Attractions and Entertainment

Conventions, Meetings and Expositions

Tourism Sociology

Cultural and Heritage Tourism

Ecotourism

Distribution Organizations

Transportation

Lodging and Restaurants

Tourism in the Future

Marketing and Tourism Industry

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Exam 4: Tourism Economics

Adam Smith stated in his book The Wealth of Nations the concepts of:

The great benefit of Tourism Satellite Account (TSA) is:

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?

The microeconomics of tourism is concerned with the following except:

This approach is a key to achieving an acceptable balance between the positive and negative impacts of tourism.

The following statement about elasticity is not true.

The law of demand indicates that price and quantity demanded are inversely related:

This is not a negative social impact of tourism.

This is not the basis on which the economics of tourism is studied:

This is a strategy for minimizing leakage from a destination's economy.

The three major economic impacts of tourism are:

Negative impacts of tourism may occur when there is:

These are the three levels of income generated by tourism.

For tourism demand, variables capable of shifting the entire demand curve inward or outward include the following:

These related goods and services are complementary when:

This method determines the net effects of the tourism sector:

These related goods and services are substitutes of each other when:

The tourism demand depends on such factors as the following except:

What is the uniqueness of tourism multiplier effect?

This economics technique measures the amount of local income per unit of visitor expenditure.

Tourism Introduction, Past and Present Tourism

Motivation for Leisure Travel

Tourism Marketing

Tourism Organizations and Policy

Tourism Planning and Sustainable Development

Tourism Research

Attractions and Entertainment

Conventions, Meetings and Expositions

Tourism Sociology

Cultural and Heritage Tourism

Ecotourism

Distribution Organizations

Transportation

Lodging and Restaurants

Tourism in the Future

Marketing and Tourism Industry

Filters