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City and Regional Planning QUESTION #5012
Question 1
In regional input-output analysis, what does a location quotient greater than 1.5 typically suggest?
  • Local deficiency
  • Export-oriented sector✔️
  • Import dependency
  • Balanced economy
Correct Answer Explanation
LQ > 1.5 indicates the region has significantly higher concentration in that sector than the national average, suggesting specialization and likely export of goods/services to other regions. LQ = 1.0 indicates regional self-sufficiency; LQ < 1.0 suggests import dependency.