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)

Question

Responses

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.
The government might tax firms to fund the development of 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 firms with the tools and equipment needed to develop the park.

Answer 1

In the context of the circular flow diagram with government and firms, the option that best describes how the government might engage directly with firms is:

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

This reflects a direct interaction where the government contracts firms for services or goods needed for park development, thereby engaging in economic activity. The other options, while related to the government-firm relationship, do not capture direct engagement in the same way.