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

Quizplus · Accepted Answer

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.

A Grocery Store Benefits When a New Furniture Factory Moves