A grocery store benefits when a new furniture factory moves to town and hires workers because the:

A) new jobs at the factory will increase local incomes,some of which will be spent at the grocery store.
B) new factory will eliminate scarcity in the area.
C) presence of a new factory will guarantee that resources are used efficiently.
D) local circular flow will be smaller with a new factory in town.

Question

Joseph Lodovichetti · Accepted Answer

Final Answer : A, Explanation :  The new jobs at the furniture factory will increase local incomes, thus increasing demand and spending at the grocery store. This will benefit the grocery store's business.

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