12th Grade Capital Formation Quizzes, Questions & Answers

12th Grade

Reading Comprehension_passage On Economy

Reading Comprehension_Passage on Economy

This quiz, titled 'Reading Comprehension_Passage on Economy', assesses understanding of economic development strategies from the 1960s to recent times. It evaluates comprehension of shifts from manufacturing to high-tech...

Questions: 9 | Attempts: 468 | Last updated: Sep 1, 2025

Sample Question
Directions (Q. 1 – 5): The passage given below is followed by a set of five questions. Choose the most appropriate answer to each question. During the 1960’s and 1970’s the primary economic development strategy of local governments in the United States was to attract manufacturing industries. Unfortunately, this strategy was usually implemented at another community’s expense: many manufacturing facilities were lured away from their moorings elsewhere through tax incentive and slick promotional efforts. Through the transfer to jobs and related revenues that resulted from this practice, one town’s triumph could become another town’s tragedy. In the 1980’s the strategy shifted from this zero-sum game to one called “high-technology development,” in which local governments competed to attract newly formed high-technology manufacturing firms. Although this approach was preferable to victimizing other geographical areas by taking their jobs, it also had its shortcomings: high-tech manufacturing firms employ only a specially trained fraction of the manufacturing workforce, and there simply are not enough high-tech firms to satisfy all geographic areas. Recently, local governments have increasingly come to recognize the advantages of yet a third strategy: the promotion of homegrown small businesses. Small indigenous businesses are created by a nearly ubiquitous resource, local entrepreneurs. With roots in their communities, these individuals are less likely to be enticed away by incentives offered by another community. Indigenous industry and talent are kept at home, creating an environment that both provides jobs and fosters further entrepreneurship. Question: The primary purpose of the passage is to

Advocate more effective strategies for encouraging the development of high-technology enterprises in the United States

Contrast the incentives for economic development offered by local governments with those offered by the private sector

Acknowledge and counter adverse criticism of programs being used to stimulate local economic development

Review and evaluate strategies and programs that have been used to stimulate economic development

12th Grade Capital Formation Quizzes, Questions & Answers

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