- The Figure Above Shows Governments in the Circular Flow

question 97

Multiple Choice

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The figure above shows governments in the circular flow.
In the figure above, firms

• A)receive transfers from governments through factor markets.
• B)sell goods and services to governments in goods markets.
• C)own factors of production.
• D)pay taxes directly to governments.
• E)do all of the above.

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Definitions:

Anthony Giddens

A prominent British sociologist known for his theory of structuration and his holistic view of modern societies.

Ulrich Beck

A sociologist known for his work on risk society, a theory that contends modern society is increasingly preoccupied with the future (and also with safety), which generates risk.

Zygmunt Bauman

A sociologist known for his work on modernity, globalization, and consumerism.

Neoliberal

Refers to a modern politico-economic theory favoring free-market capitalism, deregulation, and reduction in government spending.