1) 1. Suppose a region with important natural resources is considering developing those resources for tourism. The idea of sustainable tourism requires that future generations not be harmed by spoiling of natural resources by the current generation. One reason future generations have an interest in greater tourism development by the current generation is that
a. resources developed now can lead to greater investment, and some of this investment will benefit future generations.
b. most natural resources will be worth less in the future, so that greater tourism development by the current generation benefits future generations.
c. greater tourism development by the current generation will lead to more natural resources available to the future generation.
d. all of the above
2. In analyzing the economic impact of tourism, we see that an increase in sales to final demand, including tourists, will have a larger effect within the region than the amount of the increase in final demand itself. This is known as the
a. income effect.
b. output effect.
c. multiplier effect.
d. final demand
3)1. Which of the following tourism firms often face capacity constraints in their operations?
c. cruise lines
d. all of the above
4)1. Which of the following is NOT one of the key steps in a yield management process?
a. Divide the consumers into market segments.
b. Establish restrictions to separate customer segments by category of service.
c. Set a price for each category of service.
d. Allocate reserve inventory so that people making reservations at the last minute will have access to discounts.
5)1. True or False Between 1938 and 1978, the Civil Aeronautics Board granted many new "trunk routes" to new airlines in competition with the established major carriers.
6)1. Airlines sometimes use "code sharing," which refers to two airlines selling tickets for seats on the same flight. The two airlines do not check with each other to see that the ticket prices for the flight are similar because
a. they don't care what the other airline's prices are.
b. customers want a choice among different prices.
c. coordinating their pricing decisions would violate antitrust laws.
d. they usually agree to charge the same price whenever they are using code sharing.
7)1. Airlines went to hub and spoke route systems when
a. their routes were deregulated after 1978.
b. fuel prices changed.
c. larger aircraft were introduced.
8)1. By the end of 2005 we saw about one-half of the U.S. airline industry
a. growing rapidly in spite of their high costs, as the low-cost carriers began to shrink.
b. in bankruptcy.
c. earning above-normal returns on their invested capital.
d. all of the above.
d. Civil Aeronautics Board required them to go to hub and spoke systems.
Question 1 The answer is: a. resources developed now can lead to greater investment, and some of this investment will... View the full answer