American Institute of Certified Planners (AICP) Practice Exam

Basic economic activities are primarily characterized by:

1. Local service provision

2. Industries that cannot be exported

3. Industries capable of being exported

4. Non-basic activities

The correct answer is: Industries capable of being exported

The primary characteristic of basic economic activities is their capability to be exported, which serves as a significant driver of economic growth in a region. Basic activities produce goods and services that meet the demands of external markets. When a region successfully exports products, it brings in revenue from outside sources, which can be used to support local economic development and create jobs. Industries that can be exported tend to be those that capitalize on a region's unique resources, skills, or advantages, allowing them to compete in the broader marketplace. This export activity not only fuels local economies by creating demand for additional services and support industries but also stimulates the secondary sector, which can lead to further development and diversification. On the other hand, local service provision, industries that cannot be exported, and non-basic activities focus primarily on serving local populations and do not contribute significantly to economic growth through external trade. While they are vital for local economies, they do not embody the same characteristics that define basic economic activities.