Question

In the circular flow diagram with government, what does the government receive from factor markets?
A. expenditures B. land, labor, and capital C. taxes D. goods and services

Answer 1

In the circular flow diagram with government, the government receives **C. taxes** from factor markets. In this context, the government collects taxes from individuals and businesses, which are derived from their income in the factor markets where they provide labor, land, and capital.