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:

Perceptual Defence

The tendency for the perceptual system to defend the perceiver against unpleasant emotions.

Framing

Aspects of the presentation of information about a problem that are assumed by decision makers.

Confirmation Bias

The tendency to seek out information that conforms to one’s own definition of or solution to a problem.

Economic Person

A concept in economics and sociology that describes an individual who acts in a rational manner, making decisions based on maximizing personal financial gain.