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What is a Metropolitan Statistical Area (MSA)?

A geographic region defined by population density

A strong economic hub in a country

A specific urban area and its surrounding regions

A Metropolitan Statistical Area (MSA) is defined as a specific urban area along with its surrounding regions that are economically and socially integrated with that urban center. The U.S. Office of Management and Budget (OMB) designates MSAs based on population criteria and commuting patterns, indicating that people live in the suburbs but often work in the central city. This definition highlights the interconnectedness of urban and surrounding areas, emphasizing that they function as a single economic unit.

The concept of an MSA is crucial for various applications, such as economic analysis, urban planning, and the allocation of federal funding. By looking at an MSAs comprehensive nature, policymakers can better understand the demographics and needs of both urban centers and their neighboring communities. This collective perspective facilitates more effective resource distribution and planning at broader levels.

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A method of measuring economic growth

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