In the Circular Flow Model with the Government Sector,taxes

question 68

Multiple Choice

In the circular flow model with the government sector,taxes

• A) flow in the opposite direction as do transfers.
• B) flow in the same direction as do transfers.
• C) on households flow in the same direction as do the goods and services.
• D) on firms flow in the same direction as do factors of production.
• E) flow from the goods market to the factor markets.

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Definitions:

Opportunity Cost

The sacrifice of possible benefits from other options when selecting a specific one.

Standard Variable Cost

The anticipated cost of variable inputs (like labor and materials) for producing one unit of product or service under standard operating conditions.

Profit Centre

A business unit or department within an organization that is responsible for generating its own revenue and profits, allowing for easier tracking of financial performance.

Company-Owned Restaurant

A restaurant that is directly owned and operated by the company or brand itself, rather than by a franchisee or independent operator.