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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 residents have less money to spend
B
The local economy thrives.
C
The local economy declines.
D
Local businesses are more likely to fail
2) What process has led to an interdependency of travel and tourism activities amond different countries to strengthen their national economies?
A
Domestic trade
B
Globalization
C
Protectionism
D
Industrial positioning
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
Limited partnership
C
Close corporation
D
Transnational corporation
4) Why do popular vacation destinations tend to experience economic highs and lows at certain times of the year?
A
Airport hubs close during certain seasons
B
Tourists want to visit new places
C
Airlines overbook their flights
D
Travel and tourism are cyclical
5) What tends to occur when a nation's economy experiences an economic recession?
A
Lodging facilities expand their operations
B
The food and beverage industry grows rapidly
C
The workforce grows and spends less money on tourism
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
Tariff revenue
B
Production costs
C
Economic conditions
D
Export quotas
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 economic multiplier
B
The channels of distribution
C
The competitive advantage
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 hire more employees
B
Hospitality and tourism businesses typically lower their prices
C
Tourists' have more money to spend
D
Tourists' purchasing power decreases
9) What is an advantage to a resort community that experiences an increase in travel and tourism?
A
Less government regulation
B
Higher inflation rates
C
Lower gross domestic product
D
More employment opportunities
10) Which of the following economic indicators suggests that a country is likely to experience an overall decrease in domestic travel and tourism?
A
Sales taxes increase
B
The strength of the U.S. dollar decreases
C
The standard of living decreases
D
Consumer spending increases
11) What economic condition typically occurs during a popular vacation destination's off-season?
A
Higher unemployment
B
Increase in tourism
C
Lower interest rates
D
Decrease in tax rates
12) Which of the following factors is most likely to have a positive impact on a destination's ability to attract tourists?
A
Increase in sales tax
B
Fluctuations in interest rates
C
Improvements in the infrastructure
D
Increase in crime
13) During which phase of the business cycle is travel and tourism most likely to increase?
A
Contraction
B
Trough
C
Expansion
D
Recession
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 hotel rooms increases
B
The demand for transportation decreases
C
The local economy experiences a contraction
D
The inflation rate increases
*select an answer for all questions
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