During the 1960's and 1970's, the primary economic
development strategy of local governments in the United
States was to attract manufacturing industries. Unfortu-
nately, this strategy was usually implemented at another
(5) community's expense: many manufacturing facilities
were lured away from their moorings elsewhere through
tax incentives and slick promotional efforts. Through the
transfer of jobs and related revenues that resulted from
this practice, one town's triumph could become another
(10) 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
(15) this approach was preferable to victimizing other geo-
graphical 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
(20) 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 indigo-
enous businesses are created by a nearly ubiquitous
(25) resource, local entrepreneurs. With roots in their com-
munities, these individuals are less likely to be enticed
away by incentives offered by another community. Indig-
enous industry and talent are kept at home, creating an
environment that both provides jobs and fosters further
1. The primary purpose of the passage is to
(A) advocate more effective strategies for encouraging the development of high- technology enterprises in the United States
(B) contrast the incentives for economic development offered by local governments with those offered by the private sector
(C) acknowledge and counter adverse criticism of programs being used to stimulate local economic development
(D) define and explore promotional efforts used by local governments to attract new industry
(E) review and evaluate strategies and programs that have been used to stimulate economic development
2. The passage suggests which of the following about the majority of United States manufacturing industries before the high-technology development era of the 1980's?
(A) They lost many of their most innovative personnel to small entrepreneurial enterprises.
(B) They experienced a major decline in profits during the 1960’s and 1970’s.
(C) They could provide real economic benefits to the areas in which they were located.
(D) They employed workers who had no specialized skills.
(E) They actively interfered with local entrepreneurial ventures.
3. The tone of the passage suggests that the author is most optimistic about the economic development potential of which of the following groups?
(A) Local governments
(B) High-technology promoters
(C) Local entrepreneurs
(D) Manufacturing-industry managers
(E) Economic development strategists
4. The passage does NOT state which of the following about local entrepreneurs?
(A) They are found nearly everywhere.
(B) They encourage further entrepreneurship.
(C) They attract out-of-town investors.
(D) They employ local workers.
(E) They are established in their communities.
5. The author of the passage mentions which of the following as an advantage of high-technology development?
(A) It encourages the modernization of existing manufacturing facilities.
(B) It promotes healthy competition between rival industries.
(C) It encourages the growth of related industries.
(D) It takes full advantage of the existing workforce.
(E) It does not advantage one local workforce at the expense of another.