HMGT 242 Quiz

A hotel that buys bulk soap to save cost is benefiting from what?

• Multiplier effect

• External economies of scale

• Fiscal policy

• Backward pricing

A hotel in Jeddah pays salaries, which are spent by employees in local stores. This reflects:

• Fiscal leakage

• Load pricing

• Multiplier effect

• Supply chain

Which fiscal approach is used to fight high inflation?

• Expansionary

• Loose monetary policy

• Contractionary

• Balanced policy

What does a budget deficit mean?

• Spending equals revenue

• Spending is less than revenue

• Spending exceeds revenue

• No borrowing needed

What describes a ‘slow growth’ phase in the economy?

• High inflation

• Decreasing consumer spending

• High employment

• Rising exports

Managerial economies of scale occur when:

• A hotel hires expensive chefs

• Management is centralized to reduce cost

• Rooms are sold at higher prices

• Fewer managers are employed

What is an example of an injection in the multiplier model?

• Tourist spending

• Tax payments

• Imports

• Profits sent abroad

In multiplier effect, government investment in tourism is an example of:

• Leakage

• Injection

• Tax burden

• Indirect loss

What is the effect of contractionary fiscal policy?

• Higher employment

• Lower inflation

• Higher demand

• Increase in exports

Which type of fiscal policy is used to combat (handle) inflation?

• Expansionary

• Neutral

• Contractionary

• Stabilization