When Households and Businesses Interact in Product Markets Goods and Services

question 168

Multiple Choice

When households and businesses interact in product markets goods and services are

• A) not exchanged
• B) flowing toward businesses
• C) flowing toward households
• D) not used at all
• E) flowing to both businesses and households

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Definitions:

Working Poor

Individuals who have employment but whose incomes fall below a poverty line, due to low wages and/or part-time work.

Negative Income Tax

A social support system where individuals with earnings below a specified threshold receive additional income from the government rather than contributing tax.

Earned Income Tax Credit

A refundable tax credit aimed at low- to moderate-income working individuals and families, particularly those with children, to reduce poverty and encourage work.

Working Poor

Individuals who have employment but their income levels are below the poverty threshold, making it difficult to meet basic needs.