American Institute of Certified Planners (AICP) Practice Exam

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What does a shift-share study evaluate?

The population density in urban versus rural areas
The shift in a specific issue's share from one region to another
The effectiveness of local government policies
The long-term trends in environmental data

The correct answer is: The shift in a specific issue's share from one region to another

A shift-share study evaluates the shift in a specific issue's share from one region to another. This approach is commonly used in economic analysis to understand how different factors contribute to the growth or decline of a particular industry or economic sector in a specific area over time. The study involves breaking down observed changes in an industry into three components: the national growth effect, the local share effect, and the competitive effect. By analyzing these components, planners can determine whether changes are due to national trends, local industry performance, or shifts in competitiveness. This method can provide valuable insights for decision-makers by highlighting the elements that are driving regional economic change, which helps in formulating strategic plans and policies targeted at bolstering local economies effectively.