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.

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Definitions:

Immune System

The body's defense mechanism against foreign substances, infections, and diseases.

Optimist

An individual who tends to maintain a hopeful and positive outlook on life and its challenges.

Realist

A perspective or individual focused on accepting situations and facts as they truly are without relying on speculative or idealistic views.