The Flow of "Net Taxes" in the Circular Flow Model

question 278

Multiple Choice

The flow of "net taxes" in the circular flow model with a government sector accounts for the following items, except

• A)transfer payments such as social security benefits.
• B)subsidies to farmers, airlines, and others.
• C)proprietary income generated by public utilities and state lotteries.
• D)salaries to military personnel, public school teachers, and government inspectors.

---

Definitions:

Product Attributes

Characteristics of a product that include specifications, features, and benefits that appeal to the market.

Advantageous Use

Utilizing a resource, skill, or opportunity in a way that maximizes benefits or produces a favorable outcome.

Product Price

The amount of money required to purchase a product, determined by various factors including production costs, market demand, and competition.

Target Market

A specific group of potential customers identified as the intended recipient of a company's marketing efforts.