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

Question

Quizplus · Accepted Answer

The new jobs at the factory will increase local incomes, which in turn will increase the demand for goods and services offered by local businesses like grocery stores. This will benefit the grocery store as it experiences an increase in sales and revenue.

A Grocery Store Benefits When a New Furniture Factory Moves