The Figure Above Shows Governments in the Circular Flow

question 66

Multiple Choice

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

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

---

Definitions:

Full Goodwill Method

An accounting approach that recognizes the full fair value of goodwill in the acquisition of a subsidiary, not just the portion attributable to the parent company.

Non-controlling Interest

A minority stake in a company, represented by shares that do not grant the shareholder the majority of voting power.

Acquired Goodwill

The excess value paid for a company over the fair value of its identifiable net assets during an acquisition.

Non-controlling Interest

An equity interest in a subsidiary not held by the parent company, reflecting the share of the subsidiary's equity owned by external investors.