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

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 circular flow diagram with government, the way that the government might engage directly with firms in the context of developing a public park is:

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

This indicates a direct interaction where the government contracts firms to perform services or provide materials for the development of the park, thereby injecting money into the economy through its expenditures.