The total economic impact is derived from calculating the direct, indirect, and induced impacts.

• A. Direct, Indirect, and Induced Impacts
• B. Primary, Secondary, and Tertiary Impacts
• C. Direct, Indirect, and Total Impacts
• D. Direct, Indirect, and Residual Impacts

Answer: (A)

When assessing economic impact, you break it into direct, indirect, and induced effects. The direct effect is the immediate spending by the project or event. The indirect effect arises from changes in the supplier and industry activity as those provide goods and services to support the project. The induced effect comes from the additional spending by workers and those in the supply chain using their wages. The total economic impact is the sum of all three components, giving a complete picture of how the project affects the economy.

This is why the option listing Direct, Indirect, and Induced Impacts is the best fit. The other choices use terms that aren’t standard for this decomposition (Primary/Secondary/Tertiary), would replace the total with a component (Direct, Indirect, and Total), or introduce an unrelated term (Residual).