What is the purpose of using the multiplier model in airport economic impact studies?

• A. To determine the multiplier
• B. To predict flight schedules
• C. To calculate construction costs
• D. To forecast weather

Answer: (A)

The main concept here is how the multiplier model translates a given amount of airport-related spending into the broader economic outcome. The idea is that money spent at or around the airport doesn’t just stop there—through purchases from suppliers, wages, and household spending, that initial outlay generates additional rounds of economic activity. The multiplier captures these ripple effects to estimate the total economic impact.

That’s why this model is used to determine the multiplier and then apply it to the direct spending to gauge the overall effect. It’s not about predicting flight schedules, calculating construction costs, or forecasting weather—those are separate concerns outside the impact-measurement framework.