In an economic impact study, which of the following is in the 'direct impact' category?

Prepare for the AAAE Module 4 Test with detailed flashcards and multiple choice questions, complete with hints and explanations. Get exam-ready now!

Multiple Choice

In an economic impact study, which of the following is in the 'direct impact' category?

Explanation:
Direct impact is the immediate economic activity created by the project itself, especially the income and jobs it directly generates. Airport employee salaries fit this best because they are the wages paid directly to people because of the airport’s ongoing operation. This money flows straight into the local economy as a first‑round effect of the project. The other items describe downstream effects: marketing expenditures are operating costs aimed at attracting visitors, payments to local bus services come through the airport’s procurement chain, and increased hotel occupancy arises from more visitors spurred by the airport—these are indirect or induced effects that ripple through the economy rather than the immediate, direct payroll to staff.

Direct impact is the immediate economic activity created by the project itself, especially the income and jobs it directly generates. Airport employee salaries fit this best because they are the wages paid directly to people because of the airport’s ongoing operation. This money flows straight into the local economy as a first‑round effect of the project.

The other items describe downstream effects: marketing expenditures are operating costs aimed at attracting visitors, payments to local bus services come through the airport’s procurement chain, and increased hotel occupancy arises from more visitors spurred by the airport—these are indirect or induced effects that ripple through the economy rather than the immediate, direct payroll to staff.

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