American Institute of Certified Planners (AICP) Practice Exam

An industry is considered an exporter of employment if it has a location quotient greater than ____?

1. 0.01

2. 001

3. 1.00

4. 1000

The correct answer is: 1.00

A location quotient greater than 1.00 indicates that an industry has a higher concentration of employment in a specific area compared to the national average. This generally signifies that the industry is a significant part of the local economy, often leading to higher employment levels and making that area an exporter of jobs. In the context of economic analysis, a location quotient of 1.00 or higher suggests that the region is specialized in that industry, attracting employment opportunities and potentially serving markets outside of the local area. When the location quotient is above this threshold, it suggests that the local industry not only employs more people relative to the national average but also indicates economic strength and potential for exportation of jobs. Thus, a location quotient greater than 1.00 effectively demonstrates that the industry supports local employment in a way that contributes positively to the area's economy.