The government uses the tax collected from household and businesses to
A) invest in foreign bonds.
B) invest in foreign corporations.
C) purchase resources and products needed to provide services.
D) purchase other nations.
E) increase consumer income.

Question

Quizplus · Accepted Answer

The tax collected from households and businesses is primarily used to purchase resources and products needed to provide services such as infrastructure development, healthcare, education, defense, and social welfare programs. This helps the government to fulfill its responsibilities and provide essential services to its citizens. Investing in foreign bonds or corporations and purchasing other nations are not common uses of tax revenue. Increasing consumer income is not directly related to tax revenue, though some government policies may aim to increase overall economic growth and thus indirectly increase consumer incomes.

The Government Uses the Tax Collected from Household and Businesses