Table 1: Location quotients for the Boston-Cambridge-Newton, MA-NH Metropolitan Statistical Area (the Boston MSA) from the BLS. Table 2: Location quotients for the Phoenix-Mesa-Scottsdale, AZ (the Phoenix MSA) Metropolitan Statistical Area from the BLS. The questions in this section are about the BLS data for the Boston-Cambridge-Newton, MA-NH (Boston MSA) and the Phoenix-Mesa-Scottsdale, AZ (Phoenix MSA) Metropolitan Statistical Areas location quotients, presented in Tables 1 and 2. Use the employment location quotient to answer the questions (as you have done in Homework Assignment 4). This data has not been sorted by the Location Quotient as in your Homework Assignment 4. Choose one option to indicate the best answer. 1. [2 points] Determine the specialization of the Boston and Phoenix MSAs relative to the U.S. in Retail trade and Health care and social assistance: Both the Boston and Phoenix MSAs do not specialize in Retail trade and Health care and social assistance. The Boston MSA specializes in Retail trade, and the Phoenix MSA – in Health care and social assistance. The Boston MSA specializes in Health care and social assistance, and the Phoenix MSA – in Retail trade. Both the Boston and Phoenix MSAs specialize in Retail trade and Health care and social assistance. The Boston MSA specializes in both sectors, but not the Phoenix MSA. 2. [2 points] The industry in Table 2 for which the Phoenix MSA has the proportion of the employment that is the most similar to the share of employment for the US is Agriculture, forestry, fishing and hunting. Accommodation and food services. Mining, quarrying, and oil and gas extraction. Finance and insurance. None of the above. 3. [2 points] What is the industry in which the Boston MSA has the highest specialization relative to the Phoenix MSA? Information. Arts, entertainment, and recreation. Educational services. Finance and insurance. Wholesale trade. 4. [2 points] If a construction company expects to enjoy significant benefits from agglomeration economies, which MSA, out of these two, should the firm choose based on the employment location quotient alone? The Boston MSA. The Phoenix MSA. Both MSAs will bring significant agglomeration economies. None of MSAs will bring significant agglomeration economies.
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