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Hospitality 2.01
Test Description: Review
Instructions: Answer all questions to get your test result.
1) What typically results when a destination's hospitality and tourism businesses continuously attracts visitors?
A
Local businesses are more likely to fail
B
The local economy declines.
C
The local economy thrives.
D
Local residents have less money to spend
2) What process has led to an interdependency of travel and tourism activities amond different countries to strengthen their national economies?
A
Globalization
B
Protectionism
C
Industrial positioning
D
Domestic trade
3) The Wyndbriar Hotel chain has 710 hotels in 64 countries, sells shares of stock to the public and does not identify itself with one particular home country. What business structure is the hotel chain using?
A
Joint venture
B
Transnational corporation
C
Limited partnership
D
Close corporation
4) Why do popular vacation destinations tend to experience economic highs and lows at certain times of the year?
A
Tourists want to visit new places
B
Travel and tourism are cyclical
C
Airlines overbook their flights
D
Airport hubs close during certain seasons
5) What tends to occur when a nation's economy experiences an economic recession?
A
Lodging facilities expand their operations
B
The workforce grows and spends less money on tourism
C
The food and beverage industry grows rapidly
D
Consumers save their money and reduce their travel
6) Which of the following is a factor that influences demand in the travel and tourism industry?
A
Export quotas
B
Tariff revenue
C
Economic conditions
D
Production costs
7) When tourists spend money at local attractions, the employees working at the local attractions earn income and spend a portion of their money at local restaurants and stores. What concept does this situation illustrate?
A
The competitive advantage
B
The channels of distribution
C
The economic multiplier
D
The law of diminishing returns
8) How does a high level of inflation affect the hospitality and tourism industry?
A
Hospitality and tourism businesses typically lower their prices
B
Hospitality and tourism businesses hire more employees
C
Tourists' purchasing power decreases
D
Tourists' have more money to spend
9) What is an advantage to a resort community that experiences an increase in travel and tourism?
A
More employment opportunities
B
Lower gross domestic product
C
Higher inflation rates
D
Less government regulation
10) Which of the following economic indicators suggests that a country is likely to experience an overall decrease in domestic travel and tourism?
A
The strength of the U.S. dollar decreases
B
Consumer spending increases
C
The standard of living decreases
D
Sales taxes increase
11) What economic condition typically occurs during a popular vacation destination's off-season?
A
Decrease in tax rates
B
Higher unemployment
C
Lower interest rates
D
Increase in tourism
12) Which of the following factors is most likely to have a positive impact on a destination's ability to attract tourists?
A
Fluctuations in interest rates
B
Improvements in the infrastructure
C
Increase in crime
D
Increase in sales tax
13) During which phase of the business cycle is travel and tourism most likely to increase?
A
Expansion
B
Contraction
C
Recession
D
Trough
14) Tami is coordinating for a concert of about 30,000 attendees. She is also coordinating with local hotels. Which activity is she addressing?
A
The demand for transportation decreases
B
The local economy experiences a contraction
C
The inflation rate increases
D
The demand for hotel rooms increases
*select an answer for all questions
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