Another important aspect of Tourism Economics is the multiplier effect, which refers to the additional economic activity generated by tourism spending. When tourists spend money in a destination, it circulates through the local economy, benefiting not just the direct recipients of this spending but also other businesses and their employees. For example, tourists spending money in local restaurants support not only the restaurant staff but also local suppliers and their workers. The multiplier effect in Tourism Economics is essential because it: A) Reduces overall economic activity B) Only benefits the tourism sector C) Generates additional economic activity beyond the initial spending D) Leads to economic stagnation

Another important aspect of Tourism Economics is the multiplier effect, which refers to the additional economic activity generated by tourism spending. When tourists spend money in a destination, it circulates through the local economy, benefiting not just the direct recipients of this spending but also other businesses and their employees. For example, tourists spending money in local restaurants support not only the restaurant staff but also local suppliers and their workers. The multiplier effect in Tourism Economics is essential because it: A) Reduces overall economic activity B) Only benefits the tourism sector C) Generates additional economic activity beyond the initial spending D) Leads to economic stagnation

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.3P

See similar textbooks

Similar questions

In the goods market when C(Yd) = c0 + c1Yd, the multiplier is bigger when:A. The marginal propensity to consume (c1) is smaller.B. The marginal propensity to consume (c1) is larger.C. The exogenous component of consumption (c0) is larger.D. The exogenous component of consumption (c0) is smaller.E. None of the above.
As the multiplier process is working on the demand side, a. firms will meet the additional demand without raising prices. b. firms will not meet the additional demand. c. firms will meet the additional demand only by raising prices. d. the multiplier process will cease creating demand
Question Another important aspect of Tourism Economics is the multiplier effect, which refers to the additional economic activity generated by tourism spending. When tourists spend money in a destination, it circulates through the local economy, benefiting not just the direct recipients of this spending but also other businesses and their employees. For example, tourists spending money in local restaurants support not only the restaurant staff but also local suppliers and their workers. The multiplier effect in Tourism Economics is essential because it: A) Reduces overall economic activity B) Only benefits the tourism sector C) Generates additional economic activity beyond the initial spending D) Leads to economic stagnation
Which of the following is a true statement about the multiplier? The formula for the multiplier overstates the real world multiplier when we take into account the impact of changes in GDP on imports, inflation and the interest rate. The larger the MPC, the smaller the multiplier. The multiplier is the ratio of the change in spending to the change in GDP. The multiplier makes the economy less sensitive to changes in autonomous expenditure.
Using the Lagrange multiplier, calculate the marginal cost ofproducing an additional unit of output at the cost minimising point?
RM3. Quantity demanded is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the willingness to pay for the marginal unit. b the amount that an individual demands at a particular price level. c always combined with price levels. d all of the above are correct Which of the following would be most likely to increase consumption spending? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A reduction in consumer credit card debt b A drop in stock prices c A higher interest rate d The expectation of lower future prices
1. Use the Method of Lagrange to solve this problem. To do so, construct the La- grangean function for this problem. Use λ1 as the Lagrange multiplier attached to the period 1 budget constraint and λ2 as the Lagrange multiplier attached to the period 2 budget constraint.
Suppose we have a demand model for good x. It is modelled as: Q=1450-0.38p-0.61p_y-0.0086I where I is the consumers’ average disposable income How would the consumer perceive the two goods, and with respect to consumers’ disposable incomes how would they perceive good x? Substitutes goods; normal goods Complements goods; normal goods Substitutes goods; Inferior goods Complements goods; Normal goods None of the above.
The parallel lines illustrate different levels of total spend on both factors. is it true or false
Price of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales, find out the best combination of advertisement in newspapers and magazines by using lagrangian multiplier.
Which of the following statements is true? An individual's future spending decreases when she lends money. An individual's future spending increases when she borrows money. An economic agent borrows to move her spending from the future to the present. An economic agent borrows to move her spending from the present to the future. Loss aversion refers to the idea that people ________. generally tend to avoid risky activities are more prone to making losses than gains in day-to-day transactions psychologically weight a loss more heavily than they psychologically weight a gain are unwilling to undertake expenditures that reduce the probability of future losses Which of the following is an example of adverse selection? Overgrazing of a common piece of land A passenger traveling in a subway without a ticket A customer buying a defective appliance from a used goods market The generation of hazardous waste by the production of a good More people started building houses in the…
Shortly find the mathematical expression of Lagrangian multiplier of “constrained revenue maximization”, “constrained output maximization” and “cost minimization subject to revenue constraint” then find the mathematical expression of: (a) relationship between Lagrangian multiplier of “constrained revenue maximization” and “constrained output maximization” (b) relationship between Lagrangian multiplier of “constrained revenue maximization” and “cost minimization subject to revenue constraint”