Which two components sum to the total economic impact an airport has on a community?

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

Which two components sum to the total economic impact an airport has on a community?

Explanation:
When thinking about the total economic impact an airport has on a community, the analysis is built from two parts: the direct, immediate activity (the primary or direct impact) and the additional activity generated by spending of people who earn income from that direct activity (the induced impact). The primary impact covers the airport’s own operations and the initial purchases and wages tied directly to it. The induced impact captures the further local spending by residents and workers enabled by those wages. Adding these together gives the overall footprint on the community. Indirect or secondary ripple effects through suppliers are part of the broader picture in other frameworks, but in this formulation the total is represented by the sum of primary and induced impacts.

When thinking about the total economic impact an airport has on a community, the analysis is built from two parts: the direct, immediate activity (the primary or direct impact) and the additional activity generated by spending of people who earn income from that direct activity (the induced impact). The primary impact covers the airport’s own operations and the initial purchases and wages tied directly to it. The induced impact captures the further local spending by residents and workers enabled by those wages. Adding these together gives the overall footprint on the community. Indirect or secondary ripple effects through suppliers are part of the broader picture in other frameworks, but in this formulation the total is represented by the sum of primary and induced impacts.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy