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1)A basic understanding of economics is important to understanding tourism as an economic development strategy

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1)A basic understanding of economics is important to understanding tourism as an economic development strategy. Please briefly define and provide examples for the following terms and concepts: (1) multipliers, (2) leakage, (3) substitution, and (4) blowout. What is the danger in overestimating or overstating the value of a tourism multiplier? What strategies can tourism planners use to minimize leakage and substitution? As tourism planners, should we completely avoid events and attractions with relatively low economic impact? Conversely, should we always support events and attractions with relatively high economic impact? Please provide specific examples.

2)In a simple closed economy with no government sector the consumption function relating consumption expenditure (C) to income (Y) is given by the expression: C = £40 million + 0.7 Y Planned investment is constant at £50 million. Which one of the following is TRUE? A B C - D The multiplier has a value of greater than 4. At the equilibrium level of income, consumption expenditure is £260 million. The economy is in equilibrium if output is £300 million. None of the above.