________ impact measures the economic activity associated with the dollars spent in the community by airport patrons

• A. Direct
• B. Indirect
• C. Induced
• D. Total

Answer: (B)

In economic impact analysis, we separate how visitor spending creates ripple effects through the local economy into different channels. The indirect impact captures the ripple that occurs when local businesses that directly serve airport patrons buy additional goods and services from other local firms. So, the dollars spent by patrons in the community set off a chain of purchases in the supply chain, generating economic activity beyond the initial spending. The direct impact is the initial visitor spending itself, while the induced impact comes from households of workers who are paid due to these activities and then spend their wages locally. Total is the sum of all three. Here, the question points to the activity generated through those supplier-side purchases, which is why indirect is the best fit.