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Problem 1: Which of the following statements regarding economic base analysis is FALSE?
(1) The economic base of a community is the economic activity that allows local businesses to generate income from markets outside the community's borders.
(2) Basic economic activities are services provided within the community and income generating functions that remain inside the community.
(3) The economic base analysis is a survey of the industries and businesses that generate employment and income in a community as well as of functions of employment such as the rate of population growth and levels of income.
(4) Employment figures serve as a proxy for income in economic base analysis.
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