Chapter 12
Economic Impact Analysis
Quiz Questions
Multiple Choice
1. This type of individual comes to a community for one event while also attending a
basketball game. If a university is performing an economic impact study of its basketball
team, this individual would be classified as what kind of visitor?
a. Casual visitor
b. Time-switcher
c. Reverse time-switcher
d. Incremental visitor
e. None of the above
2. This type of individual changes the time he or she is coming to a community to coincide
with an event being held in that community (i.e., University of South Carolina basketball
game). If the university is performing an economic impact study of its basketball team,
this individual would be classified as which of the following types of visitors?
a. Casual visitor
b. Time-switcher
c. Reverse time-switcher
d. Incremental visitor
e. None of the above
3. Financial returns measured by an economic impact study include which of the
following?
a. New jobs
b. New earnings or income
c. New tax revenues
d. Positive externalities
e. All of the above
4. When selecting the geographic area of impact for a concert at the Colonial Life Arena in
Columbia, South Carolina, which area should the researcher choose to get the largest
economic impact?
a. The City of Columbia only
b. Richland County, which contains the City of Columbia
c. Richland and neighboring Lexington County
d. The Columbia, South Carolina, metropolitan statistical area
e. The State of South Carolina
5. Of the following statements regarding economic impact, which is true?
a. All spending of casual visitors and time-switchers should be counted in an
economic impact analysis.
b. All spending of casual visitors and the incremental spending of time-switchers
should be counted in an economic impact analysis.
c. Incremental spending of casual visitors and all spending of time-switchers should
be counted in an economic impact analysis.
d. Incremental spending of casual visitors and time-switchers should be counted in
an economic impact analysis.
e. None of the above
6. When constructing a survey to measure direct spending at an event, the following
question is designed to determine the type of visitor. Survey Question: “Does this visit
to Houston replace any other past/future visit to this area?”
a. Incremental visitor
b. Casual visitor
c. Time-switcher
d. Reverse time-switcher
e. Relevant visitor
7. Which of the following occur in the area of impact representing the circulation of initial
visitor expenditures?
a. Direct economic impacts
b. Direct input
c. Direct output
d. Indirect economic impacts
e. Induced economic impacts
8. Impacts on earnings and employment are which of the following?
a. Direct economic impacts
b. Direct input
c. Direct output
d. Indirect economic impacts
e. Induced economic impacts
9. What does the multiplier effect measure?
a. Direct economic impacts
b. Indirect economic impacts
c. Induced economic impacts
d. Both A and B
e. Both B and C
10. Overestimations of economic impact occur because most analyses do not account for
__________, those local residents who leave town during the event period because of
the event.
a. Incremental visitors
b. Casual visitors
c. Time-switchers
d. Reverse time-switchers
e. Relevant visitors
True/False
1. T or F Time-switchers leave a community when it hosts an event.
2. T or F Typically, the most complicated tax to analyze when calculating fiscal impact is
the sales tax.
3. T or F The output multiplier measures the indirect and induced effects of an extra unit
of direct impact spending on economic activity within the local economy.
4. T or F The employment multiplier measures the indirect and induced effects of an
extra unit of spending on the level of household income in the local economy.
5. T or F The income multiplier measures the direct, indirect, and induced effects of an
extra unit of spending on employment in the local economy.
6. T or F Not measuring opportunity cost causes the overestimation of economic impact.
7. T or F Psychic impact is the emotional impact on a community that results when the
community hosts prestigious events or major sports teams.
8. T or F Academic research conducted by economists to measure the economic impact of
sport facilities often shows that these facilities have little or no impact on the
community.
9. T or F One of the easiest steps in conducting an economic impact study is to calculate
the fiscal impact.
10. T or F The geographic area of impact should be determined late in an economic impact
study.
Answers to Quiz Questions
Multiple Choice
True/False