Question

What is an effect of businesses laying off workers? Workers have less money to spend. Businesses have higher costs. Businesses make more money. Workers demand higher wages.

Answer 1

Answer:

Workers have less money to spend.

Explanation:

If businesses lay off workers, they sometimes do not have any net gain of profit as they lose the labor that the workers give which balances out the money the business has from not paying workers. If a worker is laid off, how can they demand higher wages? They can't. The business does not have any higher costs, they have lower costs as they do not have to pay workers. However, this does not give the business more money as they lose the labor that the workers were giving. Laying off employees is a last resort in an attempt to keep a profit going. The only sure thing is that the workers have less money to spend, as they are not getting paid because they just got laid off. Therefore, the answer is the first choice.

Answer 2

Answer:

B

Explanation:

Businesses have higher cost to pay and cant afford to keep all their workers.