TOURISM ECONOMICS EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

TOURISM ECONOMICS EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Tourism economics is the study of:
A. Economic impacts of tourism activities
B. Cooking food
C. Hotel cleaning
D. Transport design
Answer: A
Rationale: It analyzes tourism’s economic effects.

2. Tourism contributes to GDP by:
A. Increasing national income
B. Reducing income
C. Stopping trade
D. Increasing loss
Answer: A
Rationale: Tourism generates revenue.

3. Foreign exchange in tourism refers to:
A. Money earned from international tourists
B. Local currency only
C. Bank loans
D. Hotel expenses
Answer: A
Rationale: International earnings.

4. Tourism demand means:
A. Number of tourists willing to travel
B. Hotel supply
C. Transport cost
D. Staff numbers
Answer: A
Rationale: Consumer desire.

5. Tourism supply includes:
A. Services and attractions offered

, B. Only hotels
C. Only transport
D. Only food
Answer: A
Rationale: All tourism products.

6. Elastic demand in tourism means:
A. Demand changes with price changes
B. Demand never changes
C. No demand
D. Fixed demand
Answer: A
Rationale: Price sensitivity.

7. Inelastic demand means:
A. Demand does not change much with price
B. Demand always changes
C. No tourists
D. High supply only
Answer: A
Rationale: Low sensitivity.

8. Tourism multiplier effect refers to:
A. Economic impact beyond direct spending
B. Ticket price
C. Hotel size
D. Transport cost
Answer: A
Rationale: Secondary economic benefits.

9. Direct tourism impact is:
A. Money spent by tourists directly
B. Indirect income
C. Taxes only
D. Loans only
Answer: A
Rationale: Immediate spending.

10. Indirect impact includes:
A. Business-to-business spending

, B. Hotel booking only
C. Transport only
D. Tickets only
Answer: A
Rationale: Supply chain effects.

11. Induced impact refers to:
A. Spending from tourism income
B. Ticket sales only
C. Transport only
D. Marketing only
Answer: A
Rationale: Income circulation.

12. Opportunity cost in tourism is:
A. Value of next best alternative
B. Profit only
C. Ticket price
D. Hotel cost
Answer: A
Rationale: Economic trade-off.

13. Tourism leakage means:
A. Money leaving the local economy
B. Money staying locally
C. Hotel profits
D. Transport cost
Answer: A
Rationale: External spending.

14. Tourism inflation refers to:
A. Price increase due to tourism demand
B. Price decrease
C. No change
D. Stable prices
Answer: A
Rationale: Demand pressure.

15. Seasonality in tourism is:
A. Fluctuation in tourist arrivals by season