October 1994 LSAT
Section 1
Question 4
Emil-Kunkin on June 29 at 02:57PM
Municipal means relating to a local government or municipality. When you encounter a word you don't know, look to he context. Since the passage tells us that we are thinking about where businesses locate, we can infer that a municipality would be somewhere that a business would locate. We also can see that municipalities charge taxes, so we can pretty strongly infer that this means local government.