American Institute of Certified Planners (AICP) Practice Exam

Economic base theory is primarily used in what type of planning framework?

1. Transportation Planning

2. Environmental Planning

3. Economic Development Plans

4. Land Use Planning

The correct answer is: Economic Development Plans

Economic base theory is primarily utilized in the context of economic development plans. This theory focuses on the production and consumption functions within an economy, analyzing how economic activities are generated and sustained. In economic development planning, the goal is to enhance the economic well-being of a community by developing strategies that attract and retain businesses, create jobs, and stimulate overall economic growth. By understanding the economic base—which typically consists of the export sector providing income to residents—planners can identify key industries that are critical for the local economy and propose initiatives that bolster these areas. This approach helps planners assess how changes in the economic landscape might impact the community and what resources or infrastructure investments are necessary to support sustainable economic growth. The other options represent different areas of planning that do not heavily emphasize economic base theory. While land use planning, transportation planning, and environmental planning may consider economic factors, their frameworks are more focused on spatial organization, mobility, and ecological sustainability, respectively, rather than explicitly aiming to develop or strengthen the economic base of a community.