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.

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Definitions:

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