This Is the Phenomenon That Occurs When the Local Residents

question 18

Multiple Choice

This is the phenomenon that occurs when the local residents adopt the styles and manners they have observed in visiting tourists.

• A) demonstration effect
• B) leakage
• C) income multiplier
• D) carrying capacity

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Definitions:

Misperception

A misunderstanding or incorrect interpretation of a situation, often leading to erroneous decisions or beliefs.

Opportunity Costs

The price paid for not choosing the second-best option available when deciding.

Risk Aversion

A preference for avoiding loss over making a gain, indicating a greater sensitivity to losses than to equivalent gains.

Mental Accounting

A concept in behavioral economics where individuals categorize and treat money differently based on subjective criteria, often leading to irrational financial decisions.