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Which of the Following Is the Role That Is Played

Question 53

Multiple Choice

Which of the following is the role that is played by the government in the circular flow diagram?


A) It provides goods and services to households and firms and pays for these using taxes.
B) It provides resources to product markets in exchange for factor income and provides goods and services to households.
C) It provides goods and services in factor markets and provides goods and services to firms.
D) It provides more goods and services to households and firms than it collects in the form of taxes.

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