Economic analysis

Question 1

Economic base analysis

Answer 1

An analysis comparing imports to exports - used to determine whether an economy is an importing or exporting economy.

Question 2

Shift-share analysis

Answer 2

Compares a local economy with a larger economy. Uses employment information from two points in time.

Question 3

Input-output analysis

Answer 3

Quantitative analysis method that links suppliers and purchasers to determine the economic output of an area.

Question 4

NAICS

Answer 4

North American Industry Classification System. Standard classification system used by Federal statistics agencies in classifying business establishments for data analalysis.

Question 5

Depreciation

Answer 5

Instead of realizing the entire cost of an asset in year one, companies can use depreciation to spread out the cost. This allows a company to write off an asset’s value over a period of time, notably its useful life.

Question 6

Acquisition cost

Answer 6

An acquisition cost, also referred to as the cost of acquisition, is the total cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures, but before sales taxes.

Question 7

Fair market value

Answer 7

The fair market value (FMV) is the value of property as determined by the marketplace.