Economic Base Analysis and Local Economy Division Quiz
Explore regional economics with questions on economic base analysis, local economy division, and key economic indicators.
#1
What does Economic Base Analysis primarily focus on?
Local government policies
Industrial output
Primary economic activities
Economic structure and development
#2
Which of the following is NOT a factor influencing the economic base of a region?
Labor force skills
Climate conditions
Market access
Technological advancements
#3
What is the primary goal of Economic Base Analysis?
To reduce unemployment rates
To attract foreign investment
To identify key sectors driving local economic growth
To stabilize consumer prices
#4
Which of the following is a characteristic of a diversified local economy?
High vulnerability to economic downturns
Overreliance on a single industry
Limited job opportunities
Resilience to external shocks
#5
What is the main purpose of a Local Economic Development (LED) strategy?
To attract tourists to the region
To create jobs and improve living standards
To regulate land use and development
To increase taxes for municipal revenue
#6
What is the purpose of a Local Economy Division?
To promote international trade
To oversee municipal budgeting
To analyze and support local businesses and industries
To enforce environmental regulations
#7
Which of the following is a characteristic of an export-oriented economy?
High reliance on imported goods
Strong emphasis on domestic consumption
Diversified export products
Low competitiveness in global markets
#8
What role does Economic Base Analysis play in urban planning?
Determining zoning regulations
Allocating public transportation routes
Identifying areas for commercial development
Informing decisions about infrastructure investments
#9
What does the Shift-Share Analysis technique assess?
Changes in labor force participation rates
The impact of population growth on local economies
The contribution of industry-specific factors to employment changes
Fluctuations in consumer spending patterns
#10
What is the significance of an economic base that consists primarily of non-basic industries?
It indicates a high level of economic diversification
It suggests vulnerability to external economic shocks
It signifies a strong reliance on exports
It reflects a stable and self-sustaining local economy
#11
In Economic Base Analysis, what does the Location Quotient (LQ) measure?
The ratio of local businesses to national businesses
The comparative advantage of a region in a particular industry
The total workforce in a region
The average income level of residents
#12
Which of the following statements best describes the concept of economic base multiplier?
It represents the ratio of exports to imports in a local economy
It measures the indirect and induced effects of changes in the economic base
It reflects the elasticity of demand for locally produced goods
It quantifies the impact of government spending on economic growth
#13
Which of the following factors is NOT typically considered in a Location Quotient (LQ) analysis?
Regional wages
Transportation costs
Cost of living
Industrial output
#14
What is the significance of the economic base multiplier exceeding 1?
It indicates a decline in local economic activity
It suggests a high level of economic dependence on external markets
It signifies positive ripple effects of changes in the economic base
It reflects a decrease in consumer spending
#15
What is the primary purpose of using Shift-Share Analysis in Economic Base Analysis?
To determine the impact of taxation policies on local businesses
To identify the sources of regional economic growth
To assess the influence of exchange rate fluctuations on export industries
To analyze changes in consumer spending patterns
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