economic impact

Question 1

multiplier effects

Answer 1

direct, indirect, induced

Question 2

First round effects of visitor spending, or initial dollars spent on good and services from local economy.

Answer 2

direct (multiplier effect)

Question 3

Ripple effects of additional recirculation of direct effect dollars by local businesses and government.

Answer 3

indirect (multiplier effect)

Question 4

Other ripple effects generated by direct and indirect effects, caused by employees of impacted businesses spending salaries and wages in other businesses.

Answer 4

induced (multiplier effect)

Question 5

infusion of outside money into a designated area. Concept of a ripple effect in the economy.

Answer 5

multiplier effect

Question 6

The portion of the re‑spending that stays in the economy is the

Answer 6

multiplier effect

Question 7

The portion that is lost to re‑spending elsewhere is termed

Answer 7

leakage

Question 8

the total change in output of all industrial sectors of the economy by the addition of a dollar (what multiplier is this?)

Answer 8

Output multiplier (also called “sales multiplier”)

Question 9

how much has changed in wages & salaries of households of a defined economy as a result of an additional dollar spent.

Answer 9

Income multiplier (also called “earning multiplier”, most reliable)

Question 10

It estimates the change in full-time jobs (number of jobs created) in a defined economy due to the addition of new money.

Answer 10

Employment multiplier (least reliable)

Question 11

these are complimentary but not additive

Answer 11

multipliers

Question 12

1. Use of sales/employee multipliers rather than income multiplier
2. Use of incremental multiplier coefficients
3. Inclusion of Local Spectators
4. Include Time Switchers and Casuals
5. Omitting Costs in the Measurement of Benefits

Answer 12

common abuses in economic impact studies