Economics for Hawaii Teachers Practice Test

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In what way does cultural diversity impact Hawaii's economy?

It decreases tourism opportunities

It restricts market innovation

It enriches the local economy

Cultural diversity significantly enriches Hawaii's economy in various ways. The unique blend of cultures not only enhances the island's appeal but also contributes to a rich tapestry of traditions, arts, and cuisines that attract tourists from around the world. This influx of visitors is vital as tourism is a primary driver of Hawaii's economy.

Moreover, cultural diversity fosters creativity and innovation among local businesses. When diverse perspectives come together, they lead to new ideas, products, and services that cater to a broader audience, making the local economy more dynamic and competitive. This variety can also enhance community ties and support local businesses, creating a more robust economic foundation.

In summary, cultural diversity acts as a catalyst for economic growth, enhancing tourism, encouraging innovative business practices, and fostering a thriving local economy that can benefit everyone in the community.

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It limits business diversity

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