Background study that reviews local business activity and employment to assist in projecting population, income, etc. is called:

• A. Economic base analysis study.
• B. Population study.
• C. Basic businesses (export).
• D. Thoroughfare study.

Answer: (A)

Analyzing a community's economic base means looking at which local businesses and employment activity bring money into the area from outside sources and how those activities drive growth in population and income. This approach distinguishes the basic (export-oriented) sectors from local-serving activities, because the expansion of the basic sector tends to push population and income up as people move to support growing demand. By understanding the size and growth of the export-based economy, planners can project future population, income, and related needs more accurately.

This term isn't about describing current demographics alone, nor about road networks or traffic patterns. A population study focuses on residents and demographic trends without tying them to economic drivers, and a thoroughfare study deals with streets and traffic. The standard name for this approach is economic base analysis.