Question

The Department of Transportation built a new highway interchange outside of Raymond’s town. Many of the businesses are suffering because the amount of traffic in town has been reduced. This is forcing employers to reduce their number of employees. What factor that affects the labor market is represented in this situation?

Answer 1

B. Government action

Explanation:

The government is the only one who can control roads getting built.

Answer 2

The factor that affects the labor market represented in this situation is Government action.

Explanation:

The department of transportation works under the Government which caused the population shift from that area.When people started using the interchange a few amount of people visited the town and subsequently business went down in that area.Which caused a large number of unemployment.The government is responsible for this situation in the town,so the factor affecting the labor market is Government action.