INTRODUCTION TO ECONOMIC DEVELOPMENT - CECD
EXAM
UPDATED ACTUAL QUESTIONS WITH CORRECT ANSWERS
Question 1.
Define: Job Creation
ANSWER
The traditional objective of economic development. It is a quality issue not a quantity issue.
Jobs created should support a desired standard of living, offer stability, and decent working
conditions. The practitioner should focus on creating quality jobs that will support and sustain
a community. The goal of job creation is to boost the local income. - Job creation should never
occur one community at the expense of another, instead programs such as "economic
gardening" should be implemented to assist small businesses expand locally.
Question 2.
Define: Job Re- tention
ANSWER
Job retention (Business Retention and Expansion) focuses economic development resources
on maintaining the current employment levels in a community through outreach campaigns. -
It is a customer service mechanism that provides constant feedback to community leaders
about private sector growth and development. Most net new jobs will come from existing
businesses within a community; therefore, existing businesses are a critical focus for local
economic development efforts.
Question 3.
Define: Quality of Life
ANSWER
It is represented by many factors including safety, education quality and opportunity, poverty
reduction, environmental quality, and cultural and recreational amenities. It is what makes
living, working, and conducting business in a community worthwhile. Conversely, detractors
from the quality of life in a place (e.g. crime) often deserve attention by economic
development organizations. Quality of life is difficult to measure but can be a critical to the
success or failure of an Economic Development organization.
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, Question 4.
Econ Dev Players
- LOCAL GOVERN- MENTS
ANSWER
The primary initiator of economic development programs through their use of state and
federal funds. They have taxing, zoning, and eminent domain authority and can provide
infrastructure, support commercial revitalization, and promote small business development.
These actions can be carried out by local governments through their economic development
departments. they can also be implemented through private and public-private entities.
Question 5.
Econ Dev Players
- STATE GOVERN- MENTS
ANSWER
Have broader authority than local governments. They are a main provider of economic
development through state funds and receipt of federal dollars. their powers include taxing
and setting compensation levels such as unemployment insurance, education, infrastructure,
and transportation. States are involved in technology development, university linkages,
special funding for business development, and export assistance.
Question 6.
Econ Dev Players
- FEDERAL GOV- ERNMENT
ANSWER
Assists economic developers by providing funding and technical assistance through its
various agencies. It also affects economic development through its regulatory powers,
including the location of federal buildings and offices through legislation (e.g. Community
reinvestment Act "CRA"). The federal government also has specific programs that focus on
both rural and urban issues. These programs can be a much needed source of both technical
and financial assistance for communities with limited resources.
Question 7.
Econ Dev Play- ers - SPECIAL AU- THORITIES
ANSWER
Usually legislated by state government to construct or operate major public projects such as
an airport, stadium, port, or redevelopment authority. Their boards are appointed by State &
Local Officials. Their powers typically include the ability to incur debt and acquire and develop
property.
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EXAM
UPDATED ACTUAL QUESTIONS WITH CORRECT ANSWERS
Question 1.
Define: Job Creation
ANSWER
The traditional objective of economic development. It is a quality issue not a quantity issue.
Jobs created should support a desired standard of living, offer stability, and decent working
conditions. The practitioner should focus on creating quality jobs that will support and sustain
a community. The goal of job creation is to boost the local income. - Job creation should never
occur one community at the expense of another, instead programs such as "economic
gardening" should be implemented to assist small businesses expand locally.
Question 2.
Define: Job Re- tention
ANSWER
Job retention (Business Retention and Expansion) focuses economic development resources
on maintaining the current employment levels in a community through outreach campaigns. -
It is a customer service mechanism that provides constant feedback to community leaders
about private sector growth and development. Most net new jobs will come from existing
businesses within a community; therefore, existing businesses are a critical focus for local
economic development efforts.
Question 3.
Define: Quality of Life
ANSWER
It is represented by many factors including safety, education quality and opportunity, poverty
reduction, environmental quality, and cultural and recreational amenities. It is what makes
living, working, and conducting business in a community worthwhile. Conversely, detractors
from the quality of life in a place (e.g. crime) often deserve attention by economic
development organizations. Quality of life is difficult to measure but can be a critical to the
success or failure of an Economic Development organization.
1/7
, Question 4.
Econ Dev Players
- LOCAL GOVERN- MENTS
ANSWER
The primary initiator of economic development programs through their use of state and
federal funds. They have taxing, zoning, and eminent domain authority and can provide
infrastructure, support commercial revitalization, and promote small business development.
These actions can be carried out by local governments through their economic development
departments. they can also be implemented through private and public-private entities.
Question 5.
Econ Dev Players
- STATE GOVERN- MENTS
ANSWER
Have broader authority than local governments. They are a main provider of economic
development through state funds and receipt of federal dollars. their powers include taxing
and setting compensation levels such as unemployment insurance, education, infrastructure,
and transportation. States are involved in technology development, university linkages,
special funding for business development, and export assistance.
Question 6.
Econ Dev Players
- FEDERAL GOV- ERNMENT
ANSWER
Assists economic developers by providing funding and technical assistance through its
various agencies. It also affects economic development through its regulatory powers,
including the location of federal buildings and offices through legislation (e.g. Community
reinvestment Act "CRA"). The federal government also has specific programs that focus on
both rural and urban issues. These programs can be a much needed source of both technical
and financial assistance for communities with limited resources.
Question 7.
Econ Dev Play- ers - SPECIAL AU- THORITIES
ANSWER
Usually legislated by state government to construct or operate major public projects such as
an airport, stadium, port, or redevelopment authority. Their boards are appointed by State &
Local Officials. Their powers typically include the ability to incur debt and acquire and develop
property.
2/7
