Which category captures the economic activity generated by wages paid to workers indirectly connected to airport operations?

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

Answer: (C)

Wages paid to workers who are not directly employed by the airport still put income into the local economy, and that income is spent on goods and services in the area. The resulting spending by these households creates additional rounds of business activity, which is what the induced category captures. Direct effects are the airport’s own operations and payroll, indirect effects come from the suppliers used to support the airport, and the induced effects come from how households spend their income in the local economy. So, the economic activity generated by those wages is the induced effect.