Free Practice Quiz Question List

4 Tourism Economics Online Quiz Questions

Use this free practice quiz with 20 questions to review 4 Tourism Economics, test your knowledge, and prepare for your next test or exam.

20 questions

Written response

1 point

What is the economic term for the money visitors spend on goods and services during their trips?

Fill in the blank

1 point

During a quiet season, a hotel may have unused rooms and earn less, but its continue.

True or false

1 point

True or false: When international visitors pay for tourism services provided in a destination, that spending is an export of services.

A
True
B
False

Choose one

1 point

A change in exchange rates makes a destination less costly for overseas visitors, while other conditions stay the same. What is the most likely effect?

A
Tourism demand is likely to fall because exchange rates do not affect visitors’ decisions.
B
Tourism demand may rise because the trip has become less costly for visitors.
C
Tourism supply must immediately expand to match the increase in demand.
D
Visitor demand cannot change unless accommodation capacity changes first.

Fill in the blank

1 point

A hotel buys food and laundry services from suppliers. The economic activity this creates for those suppliers is an example of .

Choose one

1 point

A festival causes a sudden rise in visitor bookings. Why might local tourism businesses be unable to serve every visitor right away?

A
The destination can immediately add rooms and trained workers as soon as bookings increase.
B
The destination may not be able to expand accommodation and transport capacity quickly.
C
The destination’s tourism supply is determined only by visitor preferences.
D
The destination’s supply automatically rises whenever room prices increase.

Written response

1 point

What is the term for tourism revenue that leaves a destination rather than circulating within its economy?

Choose one

1 point

What is a key purpose of Tourism Satellite Accounts (TSAs)?

A
They estimate only the number of rooms available in a destination.
B
They connect visitor spending with industries, production, employment, and other economic measures.
C
They treat direct, indirect, and induced effects as separate amounts that can be added without adjustment.
D
They measure only the spending of domestic visitors.

Choose all

1 point

Select all examples of indirect effects of tourism spending.

A
A hotel buys food from a local supplier.
B
A visitor pays a hotel for a room.
C
A hotel hires a local repair company to maintain its building.
D
A hotel employee spends wages on household groceries.

True or false

1 point

True or false: In a destination with a short peak season, tourism workers may face less predictable income because businesses reduce hours or staff during quieter months.

A
True
B
False

Choose one

1 point

A resort wants to retain more visitor revenue in its destination. Which strategy is most likely to help, provided local suppliers can meet the resort’s needs?

A
Importing supplies and paying owners based elsewhere will always maximize local retention.
B
Buying from local farms can increase the share retained if those farms can meet the required standards and capacity.
C
Hiring locally guarantees that every dollar of visitor spending stays in the destination.
D
Local sourcing reduces retention because it prevents tourism businesses from buying supplies.

True or false

1 point

True or false: Tourism jobs have the same quality and stability across occupations, employers, and destinations.

A
True
B
False

Choose one

1 point

During a festival, more visitors want hotel rooms than local hotels can provide. Which outcome is most likely?

A
Hotels can instantly expand their room capacity, so prices are unlikely to change.
B
Demand exceeds available room supply, so prices may rise and some visitors may be unable to find rooms.
C
Unused rooms in other seasons guarantee enough capacity during the festival.
D
Tourism demand falls whenever a destination has a festival.

Choose one

1 point

A destination becomes less expensive for visitors from a particular country because of an exchange-rate change. All else equal, what effect may this have on tourism demand?

A
Tourism supply will immediately expand to match any increase in visitors.
B
Tourism demand may rise because the trip is more affordable to visitors.
C
Tourism leakage will necessarily fall because the exchange rate changed.
D
Tourism employment will become stable throughout the year.

Choose one

1 point

A visitor pays a hotel for a stay, and the hotel then buys food from a local supplier. Which type of effect describes the hotel’s purchase from the supplier?

A
Indirect effect
B
Direct effect
C
Induced effect
D
Tourism leakage

Choose one

1 point

Which statement correctly distinguishes Tourism Satellite Accounts (TSAs) from estimates of tourism’s wider economic impacts?

A
They provide a framework for measuring tourism’s direct contribution, distinct from wider estimates of indirect and induced effects.
B
They count all direct, indirect, and induced effects as visitor spending without accounting for overlaps.
C
They measure only revenue that remains with locally owned businesses.
D
They estimate only the public costs of tourism infrastructure.

Written response

1 point

What economic term describes the quantity of tourism goods and services visitors are willing and able to buy at different prices and under different conditions?

Choose all

1 point

A destination is assessing the net economic benefit of a proposed tourism development. Which considerations should it include? Select all that apply.

A
Include public costs associated with tourism.
B
Consider whether resources used for tourism could have served other purposes.
C
Assess whether tourism activity replaces other local activity rather than adding to it.
D
Treat gross tourism revenue as proof of an equal net economic gain.

Written response

1 point

What term describes the seasonal pattern of tourism activity that can lead to peak periods and quieter months for employment?

Open ended

1 point

A tourism board claims that a forecast of gross tourism revenue proves its proposed development will create an equal net gain for the local economy. Explain why that conclusion does not follow and identify at least two factors a sound assessment should consider.