RESEARCH AND
ASSESSMENT METHODS
AICP TEST QUESTIONS
AND CORRECT ANSWERS
GRADED A+ 2025-2026
Shift-Share Analysis - ANS-Indicates the employment growth and competitiveness of an
industry in a certain region
National Level in Shift-Share Analysis - ANS-Used as a fundamental base for
comparisons to derive the growth rates of local economies
Regional Level in Shift-Share Analysis - ANS-Used as a comparison to the national level
to see if there is a competitive advantage or disadvantage of a region
Regional Shift Calculation - ANS-Multiply local employment in a particular industry by
the percentage change in growth of that industry national and regionally
If a local industry is outperforming national numbers it indicates... - ANS-competitive
advantage of a region.
These regional trends can be analyzed to find the specific factors contributing to a
competitive edge.
National Growth Effect in Shift-Share Analysis - ANS-Helps visualize the national trend
& is the base for all calculations
, Determines the change of growth in a specific region in comparison with the nation-
wide growth numbers.
Industrial Mix Effect in Shift-Share Analysis - ANS-Shows which industries outgrew the
overall national economy average & which lagged behind
Calculate: Base Year Employment (National Growth Rate of Sector - Overall National
Average Rate)
Expected Change in Shift-Share Analysis - ANS-Rate of growth you expect to see for a
specific industry based on the national growth effect & the industry mix effect
Calculate: National Growth + Industrial Mix Effect
Competitve Effect in Shift-Share Analysis - ANS-refers to the unique circumstances
circumstances about that specific region that allows for a competitive advantage in the
industry
Regional Competitive effect can be impacted by... - ANS-geographical and
demographical factors
Two Types of Regional Industries: - ANS-Leading (outperforming national industry
growth)
Lagging (underperforming national industry growth)
Location Quotient - ANS-The ratio of the proportion of local employment in one sector
to a similar proportion in the national economy
Used to identify the degree of self-sufficiency in an employment sector
ASSESSMENT METHODS
AICP TEST QUESTIONS
AND CORRECT ANSWERS
GRADED A+ 2025-2026
Shift-Share Analysis - ANS-Indicates the employment growth and competitiveness of an
industry in a certain region
National Level in Shift-Share Analysis - ANS-Used as a fundamental base for
comparisons to derive the growth rates of local economies
Regional Level in Shift-Share Analysis - ANS-Used as a comparison to the national level
to see if there is a competitive advantage or disadvantage of a region
Regional Shift Calculation - ANS-Multiply local employment in a particular industry by
the percentage change in growth of that industry national and regionally
If a local industry is outperforming national numbers it indicates... - ANS-competitive
advantage of a region.
These regional trends can be analyzed to find the specific factors contributing to a
competitive edge.
National Growth Effect in Shift-Share Analysis - ANS-Helps visualize the national trend
& is the base for all calculations
, Determines the change of growth in a specific region in comparison with the nation-
wide growth numbers.
Industrial Mix Effect in Shift-Share Analysis - ANS-Shows which industries outgrew the
overall national economy average & which lagged behind
Calculate: Base Year Employment (National Growth Rate of Sector - Overall National
Average Rate)
Expected Change in Shift-Share Analysis - ANS-Rate of growth you expect to see for a
specific industry based on the national growth effect & the industry mix effect
Calculate: National Growth + Industrial Mix Effect
Competitve Effect in Shift-Share Analysis - ANS-refers to the unique circumstances
circumstances about that specific region that allows for a competitive advantage in the
industry
Regional Competitive effect can be impacted by... - ANS-geographical and
demographical factors
Two Types of Regional Industries: - ANS-Leading (outperforming national industry
growth)
Lagging (underperforming national industry growth)
Location Quotient - ANS-The ratio of the proportion of local employment in one sector
to a similar proportion in the national economy
Used to identify the degree of self-sufficiency in an employment sector
