In appraisal, the relationship between basic and non-basic employment patterns as a means of predicting population and income is known as

• A. Economic-base analysis
• B. Demographic trend analysis
• C. Market analysis
• D. Employment trend analysis

Answer: (A)

Economic-base analysis focuses on distinguishing basic (export-oriented) employment from non-basic (local-serving) employment to forecast population and income. Basic industries bring money into the region from outside, and as they grow, the local economy expands through a multiplier effect that increases residents, incomes, and demand for housing and services. This connection helps appraisers predict how shifts in the export-driven sector will ripple through the community, influencing population size and income levels. It’s different from purely demographic trend analysis, which looks at population changes without tying them to the economic structure, and from broad market or employment trend analyses that don’t separate basic from non-basic activities.