Tourism Multiplier Effect Quiz

Who introduced the concept of the multiplier effect in economics?

• John Maynard Keynes

• Adam Smith

• Karl Marx

• Milton Friedman

What are the economic impacts brought about by a change in the pattern of tourism spending?

• Multiplier effects

• Leakage effects

• Induced effects

• Direct effects

What is the tourism multiplier effect?

• The circulation of money spent by tourists through a country's economy

• The reduction of tourism revenue due to economic leakage

• The increase in taxes collected from tourism activities

• The creation of jobs in the service sector

Which sector of the economy is directly impacted by tourism revenue?

• Service sector

• Manufacturing sector

• Raw materials sector

• Agricultural sector

What are the indirect effects of tourism spending?

• Impacts derived from intermediate consumption by suppliers of tourism goods and services

• Impacts experienced by the providers of tourist goods and services

• Impacts resulting from the spending of workers and business owners

• Impacts generated by the government through taxes

What are the induced effects of tourism revenue?

• Effects resulting from the spending of workers and business owners

• Effects derived from intermediate consumption by suppliers of tourism goods and services

• Effects experienced by the providers of tourist goods and services

• Effects generated by the government through taxes

What is economic leakage in tourism?

• The act of money leaving the host country and ending up elsewhere

• The increase in taxes collected from tourism activities

• The reduction of tourism revenue due to indirect impacts

• The creation of jobs in the service sector

Which of the following is NOT a type of economic leakage in tourism?

• Taxes

• Savings

• Imports

• Exports

Why is economic leakage becoming more prevalent in the tourism industry?

• Due to the international nature of the industry and globalization

• Due to the decrease in tourist spending

• Due to the decrease in the number of tourists

• Due to the increase in government regulations

What is the potential downside of relying solely on tourism as a source of income for a destination?

• The destination may receive only a small fraction of the income from tourism

• The destination may experience economic growth and development

• The destination may become more popular and profitable

• The destination may attract more multinational corporations