i. Calculate the construction location quotient for Town Anywhere in 2015 ii. Calculate the construction location quotient for Town Anywhere in 2017 iii. What does the location quotient tell you about Town Anywhere )?
i. Calculate the construction location quotient for Town Anywhere in 2015 ii. Calculate the construction location quotient for Town Anywhere in 2017 iii. What does the location quotient tell you about Town Anywhere )?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Industry
Construction
Total
Employment
Question 5
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Town Anywhere
Country Anywhere
2015
2017
%
2015
2017
%
Employment Employment Change Employment Employment Change
18,600
20,274 9%
3,000,000 3,510,000 17%
60,000,000 72,200,000 22%
265,000 304,750 15%
i. Calculate the construction location quotient for Town Anywhere in 2015
ii. Calculate the construction location quotient for Town Anywhere in 2017
iii. What does the location quotient tell you about Town Anywhere
Hint: Remember the LQ identifies the concentration of an industry at a local level
and compares it to the same industry in a larger reference economy.
)?
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