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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
Local residents have less money to spend
C
The local economy declines.
D
The local economy thrives.
2) What process has led to an interdependency of travel and tourism activities amond different countries to strengthen their national economies?
A
Protectionism
B
Industrial positioning
C
Globalization
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
Limited partnership
B
Joint venture
C
Transnational corporation
D
Close corporation
4) Why do popular vacation destinations tend to experience economic highs and lows at certain times of the year?
A
Travel and tourism are cyclical
B
Airlines overbook their flights
C
Tourists want to visit new places
D
Airport hubs close during certain seasons
5) What tends to occur when a nation's economy experiences an economic recession?
A
Consumers save their money and reduce their travel
B
The food and beverage industry grows rapidly
C
Lodging facilities expand their operations
D
The workforce grows and spends less money on tourism
6) Which of the following is a factor that influences demand in the travel and tourism industry?
A
Export quotas
B
Tariff revenue
C
Production costs
D
Economic conditions
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 channels of distribution
B
The law of diminishing returns
C
The competitive advantage
D
The economic multiplier
8) How does a high level of inflation affect the hospitality and tourism industry?
A
Tourists' purchasing power decreases
B
Hospitality and tourism businesses hire more employees
C
Hospitality and tourism businesses typically lower their prices
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
Higher inflation rates
B
Less government regulation
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
Consumer spending increases
B
The standard of living decreases
C
Sales taxes increase
D
The strength of the U.S. dollar decreases
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
Increase in crime
B
Increase in sales tax
C
Fluctuations in interest rates
D
Improvements in the infrastructure
13) During which phase of the business cycle is travel and tourism most likely to increase?
A
Recession
B
Trough
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 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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