Opportunity Cost and Economic Growth Quiz
10 Questions
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Opportunity Cost and Economic Growth Quiz

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@AdventuresomeStonehenge

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Questions and Answers

Where does the government purchase goods and services from using a given amount of expenditure?

  • Stock market
  • Product market (correct)
  • Factor market
  • Foreign market
  • How does the government acquire the resources needed for providing public services?

  • By purchasing resources from the stock market
  • By making payments in the factor market (correct)
  • By collecting donations
  • By taking out loans from banks
  • What is the main source of revenue for the government?

  • Tax collected from households and firms (correct)
  • Revenue from selling government bonds
  • Donations from businesses
  • Foreign aid
  • How does the government support the economy according to the text?

    <p>By providing income support to households and subsidies to business firms</p> Signup and view all the answers

    What action might the government take to provide additional support to households and firms?

    <p>Providing subsidies</p> Signup and view all the answers

    Who are the resource owners that the government makes payments to in order to acquire resources?

    <p>Households</p> Signup and view all the answers

    From which market does the government obtain resources by making payments?

    <p>Factor market</p> Signup and view all the answers

    Which source provides the government with funds for expenditures, payments, and additional supports?

    <p>Tax collected from households and firms</p> Signup and view all the answers

    How does the government finance its various activities like expenditures, payments, and support according to the text?

    <p>Through tax revenue collection</p> Signup and view all the answers

    What is a crucial way in which the government interacts with households and business firms in providing services?

    <p>Through subsidies and income support</p> Signup and view all the answers

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