Advanced Placement (AP) Human Geography Practice Exam

Goods and services produced for local consumption within an urban area are referred to as what?

1. Basic Sector

2. Non-basic Sector

3. Service Economy

4. Urban Economy

The correct answer is: Non-basic Sector

Goods and services produced for local consumption in an urban area are categorized as the non-basic sector. This segment of the economy serves the local population's needs directly, focusing on businesses and services that support local residents, such as grocery stores, restaurants, and local service providers. The non-basic sector contrasts with the basic sector, which includes industries that export goods outside the local area and often generate income for the region. By understanding this distinction, students can grasp how urban economies function and the roles different sectors play in supporting local and regional development. The other terms, such as service economy and urban economy, do not specifically denote the relationship of goods and services to local consumption, making them unsuitable for classifying the focus on local provisioning.