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Figure 2-1
-Refer to Figure 2-1. Which arrow shows the flow of spending by households?
Free-Trade Situation
An economic environment where goods and services can be traded across borders without regulatory barriers such as tariffs, quotas, or subsidies.
Tariff
A tax imposed on imported goods and services to regulate trade, raise government revenue, or protect domestic industries from foreign competition.
Saddles
Seats for riders on the back of an animal, typically horses, designed to support the rider's posture.
Government Revenue
Funds collected by the government from various sources, including taxes, fees, and charges, used to fund public services and provisions.
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