The Figure Above Shows Governments in the Circular Flow

question 54

Multiple Choice

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

• A) collect taxes.
• B) coordinate economic activities of households and firms.
• C) hire factors of production.
• D) own factors of production.
• E) sell goods and services to household.

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Definitions:

Retire

In finance, it often refers to the paying off or buying back of debt or securities, implying the removal of these items from the financial markets.

Invested

Capital that has been put into a project, company, or various assets to earn profits or achieve other financial goals.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Deposit

A sum of money placed into an account or given to a party as security for the fulfillment of a contract.