ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a withdrawal from the economy and so aggregate demand will decrease
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It helps to decrease Fair Trade
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It increases tariff revenue
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It is an injection into the economy which leads to the multiplier effect
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Detailed explanation-1: -Tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect which in its simplest form is how many times money spent by a tourist circulates through a country’s economy.
Detailed explanation-2: -This is known as the multiplier effect which in its simplest form is how. many times money spent by a tourist circulates through a country’s. economy. Money spent in a hotel helps to create Mobs directly in the. hotel, but it also creates Mobs indirectly elsewhere in the economy.
Detailed explanation-3: -When foreign tourism is allowed in a country, the money foreign visitors spend helps the economy. The tourist spots also become well developed and more people are employed. Thus tourism is beneficial.