- The Figure Above Shows Governments in the Circular Flow

question 90

Multiple Choice

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The figure above shows governments in the circular flow.

In the figure above, households

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

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Definitions:

Partnership

A sanctioned business setup where a group of individuals co-manage the operation and share the resulting income.

Legal Entity

A legally recognized organization or individual that has rights, responsibilities, and can enter into contracts.

Owners

Individuals or entities that possess legal rights and claims to the assets of a business.

Monthly Salary Allowance

A fixed amount of money or compensations given on a monthly basis, often excluding any bonuses or additional pay.