7
QuizMultiple Choice

Workplace Types and the Economy — Quiz

Question 7 • Career Planning and Development

A major automobile manufacturer builds a new factory in a small town. What is the most likely economic impact on that community?

Answer
A
New jobs are created at the factory and among local suppliers and businesses.
B
The town's tax revenue decreases because factories are exempt from taxes.
C
Consumer spending in the area declines because factory workers save all their wages.
D
Local businesses close because the factory takes all available customers.

Explanation

A new factory needs workers, so it creates jobs directly. Its suppliers and the local businesses serving factory workers may also gain customers, creating additional jobs and economic activity. The most likely impact is therefore new jobs at the factory and among local suppliers and businesses.

AI-written and checked against the verified answer.

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