Insights
We’ve recently finished our series on the key concepts to consider when thinking about local economic growth policies. We’ve used the series to test-drive a way of explaining concepts that we hope to use in new training and resources. For those who have followed along, we have a light-hearted quiz to test understanding. If you aren’t caught up, all the previous topics can be found on here.
You may recognise some of the cities, towns and counties mentioned. If sharing economic concepts isn’t popular in your team, do share our quiz with colleagues to see who recognises the most places. Let us know feedback on the series and the quiz by e-mailing m.streb@whatworksgrowth.org
You’ll find a link to the answers at the bottom of this page.
1. Holby City Council wants to compare the productivity of its economy to the wider Wyvern County Council area. Which GVA measure should be used?
a) Total GVA
b) GVA per capita
c) GVA per hour worked
d) GVA by sector
2. Which of these might improve area productivity?
a) Numeracy programme for adults who didn’t pass GCSEs
b) Grants to help businesses purchase digital technology
c) Business advice to SMEs around leadership and management
d) New road investment to deal with local congestion
e) All of the above
3) Pencaster LEP has low apprenticeship rates. Research shows businesses are reluctant to invest in training, in part because employers don’t understand the benefits of apprenticeships. Those that do offer apprenticeships have plenty of applicants. From a labour market perspective, does this suggest a supply-side or demand-side issue?
a) Supply-side
b) Demand-side
c) Neither
4. St Mary Mead has a new factory making jigsaw puzzles. It’s hoped the factory will have a wider ‘multiplier’ impact on local employment. Which of the following is NOT an example of indirect employment generated through the multiplier effect?
a) New staff hired by a local courier to help the factory ship puzzles
b) New staff hired by the puzzle factory
c) New staff hired by the cardboard factory in the next town over to help make puzzle boxes
d) New staff at the surrounding cafes to cover morning and evening rush from factory workers
5. Which of these is NOT an example of market failure?
a) An entrepreneur doesn’t know what finance is available to new businesses or how to apply.
b) A clothing store closes because of lack of customers
c) A town centre has broken benches and overgrown planting. Local businesses won’t invest money to fix these problems because other businesses will benefit without paying for the improvements
d) Most of a town’s residents work at a large manufacturing plant. There are few other local employers, and the plant exploits this to drive down pay.
e) A local company is offering low-cost training for businesses to improve their social media, but businesses are put off by a pointlessly complex application process.
6. The line between tradable and non-tradable sectors can be blurry. Which one of these is example of a good or service that is usually non-tradable?
a) A phone app
b) An online yoga class
c) A haircut
d) Clotted cream
e) Cough medicine
7. A business advice project in Market Blandings offered energy efficiency audits to help businesses deal with high electricity prices. However, the economic development team thinks many of these businesses would have made changes anyway. What are the team worried about?
a) displacement
b) leakage
c) agglomeration
d) capitalisation
e) additionality and deadweight
8. Weatherfield struggles with low wages for many residents. After regenerating a brownfield site, firms move in bringing new skilled jobs. However, the firms struggle to recruit and many of the higher paid jobs go to workers outside the area. What economic concept is at play?
a) displacement
b) leakage
c) agglomeration
d) capitalisation
e) additionality and deadweight
9. Beckton District Council offers grants to businesses taking on vacant premises in the town centre. Kirrin Parish Council complains that as a result several shops from their village have relocated to Beckton. What economic concept is at play?
a) displacement
b) leakage
c) agglomeration
d) capitalisation
e) additionality and deadweight
10. Borsetshire County Council spent Towns Fund money to improve the public realm in the town centre. Businesses enjoyed a footfall boost, but over time complained that their landlords raised rents. What economic concept is at play?
a) displacement
b) leakage
c) agglomeration
d) capitalisation
e) additionality and deadweight
11. Rummidge City Council’s Investment Zone hopes to build on Rummidge University’s biotech research to create a cluster. A new incubator space on campus supports spinouts and graduate start-ups, and a nearby co-working space offers subsidised offices. What economic concept are council officers hoping will drive local growth?
a) displacement
b) leakage
c) agglomeration
d) capitalisation
e) additionality and deadweight
