Which impact includes the money that circulates in the community due to an airport's presence?

Study for the AAAE Certified Member Test. Use flashcards and multiple choice questions, complete with hints and explanations. Get ready for your exam success!

Induced impacts refer to the economic effects that arise as a result of direct and indirect impacts of an airport's operations. When an airport is established, it not only creates jobs and generates direct financial activity, but it also leads to additional spending in the local community. This includes the money that is spent by employees of the airport and by those indirectly employed by related businesses (like hotels, restaurants, and retailers) who benefit from the airport's operations.

As these employees spend their income on goods and services within the community, it creates a ripple effect that stimulates further economic activity. This circulation of money is a hallmark of induced impacts, showcasing how the airport's presence contributes to the overall economic health of the community beyond its immediate operations.

In contrast, direct impacts focus on the immediate economic contributions of the airport itself, such as employment and operational revenue. Indirect impacts pertain to the businesses that benefit from the airport's existence but do not involve direct employment by the airport. Cumulative impacts encompass the total overall effects (both positive and negative) over time, but do not specifically capture the ongoing circulation of money in the community.

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