When a Factory Closes, Why Does It Spell Bad News

question 225

Multiple Choice

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.

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Definitions:

Mason-Dixon Line

A demarcation line originally surveyed in the 1760s that came to symbolize the cultural boundary between the Northern and Southern United States.

Railroad Industry

The sector of the economy involved in the operation of trains and the management of train transportation.

Coal Mining

The process of extracting coal from the ground, which has historically been a major industry in various parts of the world, including the United States and the United Kingdom.

European Rail System

The extensive network of railways connecting various countries across Europe, known for its efficiency and connectivity, offering both freight and passenger services.