Which term describes enterprises whose customers live in the same community?

Which term describes enterprises whose customers live in the same community?

• A. Basic Industries
• B. Non-basic industries
• C. Consumer Services
• D. Public Services

Answer: (B)

In city economies, firms are seen in terms of where their customers come from. Enterprises whose customers live in the same community rely on the local population for most of their demand, so they are classified as non-basic industries. This distinction matters because non-basic (local-serving) activities keep money circulating inside the city, while basic (export-oriented) industries bring in income from outside the community. The other terms describe different ideas: basic industries focus on external customers; consumer services describe a type of service rather than where the customers live; public services are government-provided and not defined by local-versus-outside customer base.

In city economies, firms are seen in terms of where their customers come from. Enterprises whose customers live in the same community rely on the local population for most of their demand, so they are classified as non-basic industries. This distinction matters because non-basic (local-serving) activities keep money circulating inside the city, while basic (export-oriented) industries bring in income from outside the community. The other terms describe different ideas: basic industries focus on external customers; consumer services describe a type of service rather than where the customers live; public services are government-provided and not defined by local-versus-outside customer base.