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City and Regional Planning QUESTION #4981
Question 1
What does the Location Quotient (LQ) measure in regional economic analysis?
  • Absolute employment in a sector
  • Regional specialization in an industry✔️
  • Total regional GDP
  • Population density
Correct Answer Explanation
Location Quotient formula $LQ = \frac{(e_i/e)}{(E_i/E)}$ compares a region's share of employment in sector $i$ to the national share. LQ > 1 indicates regional specialization; LQ < 1 indicates underrepresentation relative to national average.