Question

Suppose that a city government decides to develop a public park. In the circular flow diagram with government, which of the following is a way that the government might engage directly with firms?(1 point)

The government might provide firms with the tools and equipment needed to develop the park.
The government might provide firms with the tools and equipment needed to develop the park.

The government might provide expenditures to firms in exchange for their work on the park.
The government might provide expenditures to firms in exchange for their work on the park.

The government might provide revenue from the park to firms.
The government might provide revenue from the park to firms.

The government might tax firms to fund the development of the park.

Answer 1

Answer: The government might tax firms to fund the development of the park

Explanation:

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Answer 2

In the circular flow diagram, what do households provide to resource markets?

factors of production

When it comes to resource markets, in what form do households receive income from entrepreneurship?

profit

In the circular flow diagram, what do firms provide to product markets?

goods and services

In the circular flow diagram with government, what does the government receive directly from households?

taxes

Suppose that a city government decides to develop a public park. In the circular flow diagram with government, which of the following is a way that the government might engage directly with firms?

The government might tax firms to fund the development of the park.