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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
Industrial positioning
C
Domestic trade
D
Protectionism
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
Close corporation
B
Joint venture
C
Transnational corporation
D
Limited partnership
4) Why do popular vacation destinations tend to experience economic highs and lows at certain times of the year?
A
Airlines overbook their flights
B
Airport hubs close during certain seasons
C
Tourists want to visit new places
D
Travel and tourism are cyclical
5) What tends to occur when a nation's economy experiences an economic recession?
A
The food and beverage industry grows rapidly
B
The workforce grows and spends less money on tourism
C
Consumers save their money and reduce their travel
D
Lodging facilities expand their operations
6) Which of the following is a factor that influences demand in the travel and tourism industry?
A
Export quotas
B
Economic conditions
C
Tariff revenue
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 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
More employment opportunities
B
Higher inflation rates
C
Less government regulation
D
Lower gross domestic product
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
Increase in tourism
B
Decrease in tax rates
C
Lower interest rates
D
Higher unemployment
12) Which of the following factors is most likely to have a positive impact on a destination's ability to attract tourists?
A
Improvements in the infrastructure
B
Increase in crime
C
Fluctuations in interest rates
D
Increase in sales tax
13) During which phase of the business cycle is travel and tourism most likely to increase?
A
Trough
B
Recession
C
Expansion
D
Contraction
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 inflation rate increases
C
The demand for hotel rooms increases
D
The local economy experiences a contraction
*select an answer for all questions
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