When a factory closes, why does it spell 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.

Question

Quizplus · Accepted Answer

When a factory closes and workers are left unemployed, they have lower incomes and are less likely to spend money on dining out or other non-essential expenses. This means that local restaurants may experience a drop in business and revenue.

When a Factory Closes, Why Does It Spell Bad News