DECA Sports and Entertainment Marketing Practice Exam

What is the term for the overall effect an economic event has on a region?

1. Discretionary income analysis

2. Economic impact

3. Demographic shift

4. Market segmentation

The correct answer is: Economic impact

The term "economic impact" specifically refers to the overall effect that an economic event has on a region. This concept encompasses various aspects including changes in employment rates, income levels, business growth, and overall economic health that result from specific events, such as the hosting of an event, the opening of a major company, or a significant policy change. Economic impact is valuable for assessing how such events can affect the local economy, providing insights into the benefits or risks involved. The other terms do not define this specific effect. Discretionary income analysis focuses on the portion of income available for spending after basic necessities are covered, making it less relevant to the broader regional economic effects. A demographic shift refers to changes in the composition of a population, such as age or ethnicity, which while influential, does not directly capture the results of an economic event. Market segmentation involves dividing a market into distinct groups of consumers who have different needs or characteristics, not necessarily tied to the economic implications of specific events. Thus, "economic impact" clearly stands out as the most appropriate term in this context.