Asked by Luthando Bongobi on Jun 26, 2024
Verified
When a factory closes,why is it bad news for the local restaurants?
A) Sales taxes are likely to increase.
B) Unemployed factory workers have lower incomes and are less likely to dine out.
C) Unemployed factory workers are eligible for government unemployment benefits.
D) The opportunity cost of dining out has fallen.
Factory Closes
This describes a situation where a manufacturing facility ceases operations, potentially due to economic, operational, or strategic decisions.
Unemployed Workers
Individuals who are capable of working and are actively seeking work but are not currently employed.
Dine Out
The action of eating a meal outside one's home, typically in a restaurant.
- Discern the influence of individual consumption on the income of others within the economic framework.
Verified Answer
KT
Kalyea TerrellJun 28, 2024
Final Answer :
B
Explanation :
When a factory closes, it often results in job losses for workers in the community. As these workers have lower income, they are less likely to dine out at local restaurants, which can result in a reduction in customers for those establishments.
Learning Objectives
- Discern the influence of individual consumption on the income of others within the economic framework.