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In the figure above, which of the following is true?
I. Governments coordinate economic activities of households and firms.
Ii. Governments buy goods and services in goods markets.
iii. Households pay taxes directly to firms.

Question

Quizplus · Accepted Answer

Governments buy goods and services in goods markets, which is true for statement ii. Statement i is incorrect because governments do not coordinate economic activities of households and firms; they regulate and influence them. Statement iii is incorrect because households pay taxes to the government, not directly to firms.

- In the Figure Above, Which of the Following Is True