What is the role of governments in the circular flow model? What are the main taxes paid to the federal government?
In the circular flow model, governments
A. receive taxes and make transfers directly to households and firms, which do not flow the goods or factor markets
B. make expenditures on goods and services to households and firms, which flow through the goods markets
C. pay rent, wages, interest, and profit to households
D. receive transfers from households and firms, which flow through goods and factor markets
The main taxes paid to the federal government are
A. corporate (business) income taxes, sales taxes, and tariffs on imported goods
B. Social Security taxes, personal income taxes, and property taxes
C. personal income taxes, corporate (business) income taxes, and Social Security taxes
D. personal income taxes, sales taxes, and property taxes